Linda,
The main problem here is that he is stealing business from his employer, and also stealing company time if he was going to the restaurant and picking up the orders.
Either way, once he sold more than $600 of business to his cousin, it becomes a felony.
So the manager has a choice here. He can work out a deal with the employee, which in this case I would think would be best, because the customers are already talking about how great the service is.
Firing the employee at this point is going to cost him more than if he works out a deal with him.
I would have the employee, the restaurant owner, and the hotel sign a contract for a percentage of the profits to go to the hotel. Probably about 40/40/20, or something like that.
Bear in mind, that the hotel is still going to be liable for any health violations that may come up, etc...
So the restaurant 40%, the hotel 40%, and the employee 20%. Or something similar. Or you could say that the employee is working as an independant contractor for the restaurant, and have him work on a commission basis.
There are numerous ways to handle this. It would all depend on the employee's, and the restaurant owners attitudes, when approached that would determine how I would handle it.
But, no matter what, something would have to be done.
Sincerely,
David Rowland
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