Employment Agreement

[n_venky]

Hi,

 

I have a query with regard to changing to a new job. Currently I am on H1B from Company A working for client Company B.

Now the client Company B has a fulltime permanent job opening and I want to change to the Client Company B.

 

But, I have signed an employment agreement with my Company A, who has done my H1B filing and processing.

This employment has 3 main clauses, which I am concerned of. Can you please help me before I can take a call to move or not.

 

1) Clause 1 : The term of employment is 36 months. if the contract is broken at any period , then I have to pay 400 $ multiplied into the remaining months.

 

Ex: Out of 36 months , if I have worked for 10 months and break the contract , then I have to pay 26 months * 400 $

-> 26*400 = 10,400 $

 

2) Clause 2 : That I can't work with any of the middle or end clients for 1 year of leaving the company. "Employee shall not, directly or indirectly, solicit business from, or provide any software eng, IT consulting or computer programming services of any kind to to XXXX current or previous intermediary vendor contractors or end clients. XXX shall be entitled to immediate injunctive relief as well as any and all monetary damages that result from Employee's violation of this non-solicitation and indemnity clause, including, but not limited to business damages and legal fees. "

 

3) Clause 3 : 45 Days’ notice period , if I want to leave early than this , pay the salary amount for this period.

 

So just wanted to know if these clauses can be really implemented? Do these hold good. This contract was made in Texas State.

 

Can you please help? Thank you so much.

[n_venky]

Hi,

 

Also one thing is, if at all I ready to take the financial hit and join the Client Company B. Would this clause be really a hinderance in America ?

 

"can't work with any of the  current or previous intermediary vendor contractors or end clients"

 

Please help me know.

[jairichi]

Hi,

 

I have a query with regard to changing to a new job. Currently I am on H1B from Company A working for client Company B.

Now the client Company B has a fulltime permanent job opening and I want to change to the Client Company B.

 

But, I have signed an employment agreement with my Company A, who has done my H1B filing and processing.

This employment has 3 main clauses, which I am concerned of. Can you please help me before I can take a call to move or not.

 

1) Clause 1 : The term of employment is 36 months. if the contract is broken at any period , then I have to pay 400 $ multiplied into the remaining months.

 

Ex: Out of 36 months , if I have worked for 10 months and break the contract , then I have to pay 26 months * 400 $

-> 26*400 = 10,400 $

 

2) Clause 2 : That I can't work with any of the middle or end clients for 1 year of leaving the company. "Employee shall not, directly or indirectly, solicit business from, or provide any software eng, IT consulting or computer programming services of any kind to to XXXX current or previous intermediary vendor contractors or end clients. XXX shall be entitled to immediate injunctive relief as well as any and all monetary damages that result from Employee's violation of this non-solicitation and indemnity clause, including, but not limited to business damages and legal fees. "

 

3) Clause 3 : 45 Days’ notice period , if I want to leave early than this , pay the salary amount for this period.

 

So just wanted to know if these clauses can be really implemented? Do these hold good. This contract was made in Texas State.

 

Can you please help? Thank you so much.

In my opinion they are valid and you have signed it.

[rahul412]

I think that contract is a valid one.

[JoeF]

A penalty for leaving an H1 employer early is not allowed.

You need to have your contract reviewed by a labor lawyer and an immigration lawyer.

[jairichi]

Hi,

 

Also one thing is, if at all I ready to take the financial hit and join the Client Company B. Would this clause be really a hinderance in America ?

 

"can't work with any of the  current or previous intermediary vendor contractors or end clients"

 

Please help me know.

It is a non-compete agreement and I believe it is valid.

[n_venky]

Thanks a lot for the inputs, i will confirm a Labor Attorney. Once I consult, I will post what was the output.

[t75]

NEVER sign a contract that you do not intend to honor. ALWAYS have your questions about a contract answered by an attorney BEFORE signing.

[n_venky]

NEVER sign a contract that you do not intend to honor. ALWAYS have your questions about a contract answered by an attorney BEFORE signing.

 

thank you, yeah sure, I will "NEVER sign a contract that I do not intend to honor."

IF the below doesnt happen :

After leaving the job in India and coming to US, trusting the employer when said like there are no contracts. But just before 2 days of joining the client location , says that contract needs to be signed , thats the new company policy. And I had no other go but to sign. off course I could have protested to sign , dont join the job. Sent back to India by the Employer , I have go start my job search there in India all afresh. Also losing 3-4 months of time in all this bargain. Parallely taking care of my family.

 

If possible and have a way , sure.

[JoeF]

thank you, yeah sure, I will "NEVER sign a contract that I do not intend to honor."

IF the below doesnt happen :

After leaving the job in India and coming to US, trusting the employer when said like there are no contracts. But just before 2 days of joining the client location , says that contract needs to be signed , thats the new company policy. And I had no other go but to sign. off course I could have protested to sign , dont join the job. Sent back to India by the Employer , I have go start my job search there in India all afresh. Also losing 3-4 months of time in all this bargain. Parallely taking care of my family.

 

If possible and have a way , sure.

That's why you need to talk with a lawyer. Things like such coerced contracts are actually illegal. I hope you have documentation for your claims, e.g., emails that said there is no such contract.