4

I'm currently under contract with a US-based company. This company puts me through their training program, and at the end of the program, they market me to clients. I then have to get offered a corporation-to-corporation contract opportunity.

Now, I am new to this, but they are marketing me as someone with five years experience. I didn't know that I would be marketed like this prior to signing the contract, and it isn't mentioned in the contract. Is this unethical? This isn't enough to void a contract, correct?

Also, can anyone attest to the legality of the following contract clauses?

  • If I break the contract, I may have to return all monies earned during the training period, and I will have to pay $1000 for each month left on the contract.
  • After the contract is over, I cannot work for a company whom I have worked for while under my current contract for a full year. (Legal?)
Chris Forrence
  • 1,637
  • 14
  • 31
Joseph Gannon
  • 41
  • 1
  • 3
    Hoo...I can see your conundrum. I don't think that's enough to void the contract, but I'm not a legal expert. Which country is this? – Chris Forrence Mar 03 '14 at 16:30
  • 3
    Context is everything here; which country is this in, and what were the terms of the contract? – Amelia Mar 03 '14 at 16:40
  • "If anything is unclear just ask" -- have you simply applied that to the company? And yes, the non-compete after termination is customary. – Scott Mar 03 '14 at 18:41
  • It's a US based contract. The contract states pay rates during training/after training. It doesn't mention "how" I will be marketed to clients or anything – Joseph Gannon Mar 03 '14 at 21:23
  • My point was... have you simply voiced your concerns to the company? It's better to open a dialog than to jump to "You're unethical.. I want out!" – Scott Mar 04 '14 at 06:04

1 Answers1

3

If I break the contract, I may have to return all monies earned during the training period, and I will have to pay $1000 for each month left on the contract.

I have seen this in other contracts. They want back the money they invested in you. Since I am not a lawyer, I am not sure if this is legal. But I have seen this in many, many contracts. Especially in large companies.

After the contract is over, I cannot work for a company whom I have worked for while under my current contract for a full year. (Legal?)

Yes. I have seen this as well. I cannot remember how this clause is called right now, but they are limiting you from work in a competing industry for X number of months. I usually see from 6 to 12 months. In our country, they even put 18 months or more years, which I don't find to be legal, but no one has ever tried to prove that on the court.

Peter MV
  • 14,379
  • 1
  • 34
  • 67
  • 1
    Also to add to this, this is unenforceable in the UK; the high court ruled that non-competition clauses cannot be enforced in Pat Systems v Neilly [2012] EWHC 2609 (QB) (However, if the company can prove that you are a significant risk to the company if you go elsewhere, or if you know vital company secrets, they can enforce this) – Amelia Mar 04 '14 at 11:32