View Full Version : Employment Agreement Clause
supera
Nov 11, 2010, 06:02 PM
Clause 1: At Will Employment: Notwithstanding any other term of this Agreement or policy of Company, either of the Parties may terminate the employment relationship at will.However, Employee agrees to provide the Company with a minimum of three (3) weeks prior written notice of its intent to terminate, which receipt of such notice must be acknowledged,in writing, by the Company.
Question on Clause 1: Does this mean that as long as the Employee gives 3 week notice, there will be no other agreement obligations for the employee (be it mentioned anywhere in the agreement)?
Clause 2: Termination by Employee.: Employee understands and acknowledges that by entering into this Agreement, Company has made an investment in Employee and incurred significant costs, Therefore, the Parties agree that if Employee terminates this Agreement:
a. within twelve (12) months of its commencement, Employee shall pay the Company the amount $15,000
b. after thirteenth (13) months but before this Agreement terminates by its terms, then Employee shall pay the Company the amount of $5,000
Question on Clause 2: Will both (a) and (b) be applicable? i.e. will the employee have to pay $20,000?
Fr_Chuck
Nov 11, 2010, 06:09 PM
Both are applicable, number one is merely an at will clause, making sure no idea of contract for long term is assumed or implied. While there is money to pay if you leave early, you have the right to do so, but clause one really is for the protection of the company, it gives them the right to fire you, for any or no reason at all, if they want. It does not want the agreement to appear to be a contract of employment giving the employee any right to work.
supera
Nov 11, 2010, 06:17 PM
Hi Fr_Chuck,
Sorry but I am confused. Let me try to summarize the question - considering both clauses, if the employee gives the 3 weeks notice, will he still have to pay $20,000?
I was assuming that as long as the employee gives 3 weeks notice he does NOT owe anything to the company because clause 1 says "Notwithstanding any other term of this Agreement....."
Thanks
ScottGem
Nov 11, 2010, 07:04 PM
No he would have to pay $15K. Its very clear. In the 1st year its $15K after its $5K. Once the agreement expires its 0.
AK lawyer
Nov 11, 2010, 07:15 PM
Clause 1: At Will Employment: Notwithstanding any other term of this Agreement or policy of Company, either of the Parties may terminate the employment relationship at will....
Question on Clause 1: Does this mean that as long as the Employee gives 3 week notice, there will be no other agreement obligations for the employee (be it mentioned anywhere in the agreement)?
...
No. Clause 1 requires a 3-week notice. But it does not, as you seem to think, provide that there are no other adverse consequences of termination. The penalty provisions of Clause 2 are not voided by Clause 1. This clause doesn't even suggest that.
...
Clause 2: Termination by Employee.: Employee understands and acknowledges that by entering into this Agreement, Company has made an investment in Employee and incurred significant costs, Therefore, the Parties agree that if Employee terminates this Agreement:
a. within twelve (12) months of its commencement, Employee shall pay the Company the amount $15,000
b. after thirteenth (13) months but before this Agreement terminates by its terms, then Employee shall pay the Company the amount of $5,000
Question on Clause 2: Will both (a) and (b) be applicable? i.e. will the employee have to pay $20,000?
No. There is no way both (a) and (b) could apply. Either if the employee quits, he would either quit within 12 months or after 12 months. One or the other. Not both.
Fr_Chuck
Nov 11, 2010, 07:17 PM
If he quits within the time of clause 2, he will owe the money, he is just required to give 3 week notice before he quits.
*** not sure what happens if he does not, is there a penalty clause if he does not ?
But both 1 and 2 are valid, notwithstanding, does not mean it replaces any other clause, it merely means that there is no contract of employment for any specific term.