Help . asked to move to a new contract

[Mal104]

Hi there.
I've been contracting for the last 5 years to an American company, who unfortunately have never offered a payrise and when questioned, threatened termination of contract. Up until now, they have offered a flat rate payment of £40K per year plus expenses (such as hotel, meals etc).
They now wish to offer a £600 a month flat rate (for paperwork, emails, phone calls etc) plus a £250 daily rate when asked to work away (but whilst hotels will be paid for, food will not). The work away per month can vary considerably and months like december, in theory, i could be working all month at home for £600 as not working away.
Whilst I can work for other clients, the contract is quite tied down insofar as it cannot be in any area similar to their own (and for a minimum of two years after the contract would end !!!)

Am I being done over? Having never seen other people's contracts, how does it work and any help gratefully received

Thanks

[jmo21]

They want you to go part time, and work an amount to their choosing, with no guarentees.

Computer says.....yes....

[rd409]

Hi there.
I've been contracting for the last 5 years to an American company, who unfortunately have never offered a payrise and when questioned, threatened termination of contract. Up until now, they have offered a flat rate payment of £40K per year plus expenses (such as hotel, meals etc).
They now wish to offer a £600 a month flat rate (for paperwork, emails, phone calls etc) plus a £250 daily rate when asked to work away (but whilst hotels will be paid for, food will not). The work away per month can vary considerably and months like december, in theory, i could be working all month at home for £600 as not working away.
Whilst I can work for other clients, the contract is quite tied down insofar as it cannot be in any area similar to their own (and for a minimum of two years after the contract would end !!!)

Am I being done over? Having never seen other people's contracts, how does it work and any help gratefully received

Thanks

Did you mean to say £600 pw or pm? £600 pm = £7200 per year, which is considerably less than 40K? I think it is time to look for another employment (contract/permie).

[wim121]

Did you mean to say £600 pw or pm? £600 pm = £7200 per year, which is considerably less than 40K? I think it is time to look for another employment (contract/permie).

I think he meant £600pm for his admin and a way to compensate for other expenses ON TOP of the daily rate of £250.

Hi there.
I've been contracting for the last 5 years to an American company, who unfortunately have never offered a payrise and when questioned, threatened termination of contract. Up until now, they have offered a flat rate payment of £40K per year plus expenses (such as hotel, meals etc).
They now wish to offer a £600 a month flat rate (for paperwork, emails, phone calls etc) plus a £250 daily rate when asked to work away (but whilst hotels will be paid for, food will not). The work away per month can vary considerably and months like december, in theory, i could be working all month at home for £600 as not working away.
Whilst I can work for other clients, the contract is quite tied down insofar as it cannot be in any area similar to their own (and for a minimum of two years after the contract would end !!!)

Am I being done over? Having never seen other people's contracts, how does it work and any help gratefully received

Thanks

I would say you are entitled to food and mileage expenses AT LEAST, in addition to hotel expenses. However you do get a good amount for admin which is probably more than you would get for food and mileage allowances.

I dont think you are being done over at all, in fact, you are very lucky to be on such a package. You may not have had raises, but I know many to have been forced to take severe cuts .... In this economic climate, I would say your are doing extremely well, so dont do anything to anger the gods.


Although you may not want to say in public what company you are working for, Im intrigued. Ive worked for american companies as well, quite a big "computer" company in fact. They didnt offer raises either and acted in a similar way, good people to work for though, once you get around the politics of it all .... Wondering if its the same company ....

[Mal104]

unfortunately, £600 per month but plus the £250 daily allowance for when working.
Logic tells me that if I work 5 days a week for 48 weeks per yeaar, thats roughly a 35% increase (by the time you add on the £7200 per month.
But then conversely, if they don't make me busy (outside of paperwork , emails and phone support) then considerably worse off.
Whilst the demand in the UK is slowing down, the demand oversea's is picking up.
Three options I reckon
1. Ditch them altogether
2. Argue for a better per month rate
3. Accept - and either will get a big pay rise or pay cut

What would you do?

[Scrag Meister]

I think I would be on my way.

The work isn't guaranteed and you could potentially end up on the £7200, which you could get at McD's.

Actually you could earn over 11k at Holland and Barrett.

Sound a bit like you are going to be taking all the risk, while they pay you a low rate of £250 pd, but only on the days you work.

Edit : £600 per month is £30pd, I earn over twice that per hour!!!!

On your marks....
Get set....
Jobserve.

Edit : Is the £600 per month purely a retainer? Or are you actually doing any work when at home?

Could you end up doing a full month of 8 hour days at home for £600?

What notice do they have to give you for you to travel away?

[SueEllen]

Whilst I can work for other clients, the contract is quite tied down insofar as it cannot be in any area similar to their own (and for a minimum of two years after the contract would end !!!)

Questions about that:
1. What legal jurisdiction is the contract in?
2. Are the company big?
3. Is the restrain of trade clause written out so it's not widely encompassing ?

Have a look at this to give you an idea of one that is - http://forums.contractoruk.com/accou...ml#post1346930

As while you may be tied in to the clause while you work for them, if the clause is too widely encompassing and suppose to enforceable in England and Wales, then as long as you work in that jurisdiction you can ignore it entirely as no restrain of trade clause is suppose to stop you earning a living.

[Mal104]

Edit : Is the £600 per month purely a retainer? Or are you actually doing any work when at home?

Could you end up doing a full month of 8 hour days at home for £600?

What notice do they have to give you for you to travel away?

The £600 per month is for handling internal processes uch as paperwork, emails, phone calls etc - so yes, I am expected to work.

Regarding working away, in theory if a customer has an urgent request, i could be asked go tomorrow. Some customers are planned (such as training) a few weeks in advance - however , they also sometimes cancel at the last minute

Thanks very much for your advice. much appreciated.

[Mal104]

[QUOTE=SueEllen;1349382]Questions about that:
1. What legal jurisdiction is the contract in?
2. Are the company big?
3. Is the restrain of trade clause written out so it's not widely encompassing ?

Thanks for our reply - much appreciated.
In reply, to your questions
1. the contract comes under the governing law of a US State and the courts of such state "shall have exclusive jurisdiction to determine all claims, disputes or actions and ...both parties consent to this"
2. The company employs about 100 or so people but has customers from America to Australia and everything inbetween. They pretty much dominate in their software field.
3. The restraint of trade clause is written as such
"As the software systems have contributed to international standards and the company actively markets these systems throughout the world, there is no appropriate geographic area limitiation to this provision (Non Competetion). During the duration of this agreement and for a period 2years after, the contractor will not work directly or indirectly in any capacity that competes with the company business".

So, for example, if they sold software to say the healthcare system, then i would not be able to (supposedly) workfor a rival software system supplying the healthcare system nor, I would assume, work in the healthcare system directly using another product???
Is such a worldwide clause legal. Can they stop you working for another company or client in order to gain a living. can they seek damages if you did? Or if they lost a customer through co-incidence rather than spite, could they then come after you as well

Thanks in anticipation !!

[SueEllen]

3. The restraint of trade clause is written as such
"As the software systems have contributed to international standards and the company actively markets these systems throughout the world, there is no appropriate geographic area limitiation to this provision (Non Competetion). During the duration of this agreement and for a period 2years after, the contractor will not work directly or indirectly in any capacity that competes with the company business".

Firstly I noticed that would be hard to enforce in certain countries where the legal system is open to bribery or they don't give a damn about such things so having a world-wide clause is a bit pointless.

Anyway spoken to one of my lawyer mates (ok emailed the clause over) the response was what I guessed.

The clause has to worded to protect a legitimate business interest, any restrictions have to be reasonable and this depends on the nature of the business.

In this particular case as the clause is so vague this is hard to tell (so the entire contract has to be looked at) however due to the time period being so long then it's likely to be unenforceable.

It would have to go before a judge for you both to argue whether the restrain of trade is reasonable or not, and as most cases are sorted out before it gets to court i.e. by you standing your ground then you wouldn't never really know.