From the course: Human Resources: Working with Vendors

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Ending a vendor relationship

Ending a vendor relationship

From the course: Human Resources: Working with Vendors

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Ending a vendor relationship

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- Olivia runs the accounting and payroll department for a midsize company. The outsource payroll vendors have repeatedly made payroll errors as incorrect bonus amounts, late paychecks, and terrible customer service. Since that outsource vendor processes all paychecks, benefits 401K and all payroll taxes for the company, Olivia does not know how to end the relationship without jeopardizing all of the employees pay and benefits. Vendors that are not performing as promised, are tricky to let go as they become important to the company's operations. Let's take a look at some areas to consider when thinking of ending a vendor relationship. The first step to ending a vendor relationship is to check your contractual obligations. Maybe vendors have termination clauses where you need to provide a significant amount of notice period before termination. If notice is not given, there could be hefty fines. Also, check for any other clauses due to poor customer service to see if there's any remedies…

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