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Delayed pay, Harsh Employer

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1 Delayed pay, Harsh Employer on Fri Oct 16, 2015 4:30 pm

torivic1107


Arresto Menor
Good Day! Im just seeking insights on our current situation. I work as a Trainer in a small office for freelancers, My partner works as the Operations manager. Before this business started, A proposal was presented to the investors. Agreed was we shall receive 2k weekly allowance plus a percentage either which will be coming from their own pockets or from a small percentage from the rate that our clients pay. They even proposed a profit sharing set up. Unfortunately, We have been experiencing delays in our allowance and we dnt even get a feel of the additional percentage agreed for doing additional tasks liek mamanaging agents, Client relations and what sucks is we clean the office all by ourselves which is supposedly a janitorial service should be provided. They made us believe that they will be investing brand new equipment in this office but we are using used ones. Agents dont get their pay whole as well because they need to get the huge chunk of it to replenish the funds. We dont have a formal contract though but any legal advice or action that we can take for this? Hoping someone responds to my inquiry, It will be greatly appreciated. Thank You.

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2 Re: Delayed pay, Harsh Employer on Fri Oct 16, 2015 5:32 pm

Lunkan


Reclusion Perpetua
Don't you have any contract??

It's normal to count percentage shares AFTER the customer pay, so perhaps there aren't anything to count percent at by no customer have paid Smile

Some seem suspicious it's a scam (equipment and they said they will pay percentage out of their own pocket)
but it's possible it depend of they are not good at planning, OR it can depend of customers don't pay in time, so there aren't enough money available to pay with...

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3 Re: Delayed pay, Harsh Employer on Mon Oct 19, 2015 12:50 pm

torivic1107


Arresto Menor
We dont have a contract but the proposal was signed and acknowledged by the "financers" or the CEO's of this small company. Is it also legal for them to get a huge chunk of the amount that the agents worked for?

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4 Re: Delayed pay, Harsh Employer on Mon Oct 19, 2015 5:14 pm

Lunkan


Reclusion Perpetua
torivic1107 wrote:We dont have a contract but the proposal was signed and acknowledged by the "financers" or the CEO's of this small company. Is it also legal for them to get a huge chunk of the amount that the agents worked for?
I see. Then there is a document, which you can refer to. Do you have a copy?

I don't know how big part you mean with "huge chunk", but Yes it's legal as long as
1. they follow the laws (for instance the employment laws if it's an employment situation)
2. and follow the agreement you have.

When one part (=work) get some pay UNDEPENDING of the result of the project, then it's normal the extra risk part (=financiere) get a biger chunk the biger risk the project will fail.
Plus there can be a chunk to the business idea and projecting
and one separate chunk to the manager too, if he don't get salary.

The TIME is a factor too = Financiere get a biger chunk the longer time from investment to when the work is done.
An other factor is PROPORTIONS between need of financing and the salary work value =The biger financing part, the biger part of the result to the financieres.
An other factor is how hard it is to get different parts to AGREE to the deal. =If the workers get LESS salary during the work, then they get some additional chunk. The harder it is to get financing to such projects, the biger chunk to the financing. In the Philippines it's often very hard to get financing (except CRAZY expensive).

Compare:
"Harvest sharing". Normal time is around 4 months.
It's a common deal in the Philippines the financiere take LESS risk and by that get the SMALLER chunk of the result.
The financiere pay things as seeds, fertilizer, perticides and sometimes get the farmer an advance pay to live of until the harvest.
After the harvest the financiere get the money back (or harvest worth that).
Then the financiere get between 25 - 33 % of the rest and the farmer get the remaining 67-75 %.
But that's when the financiere take LESS risk than the worker.


In your case I guess it's longer time and the financieres (is suppoused to) take much biger risk than the workers and by that it's fair the financieres get a biger chunk than the workers of the result - if there will be any plus result Smile In your project it don't seem to be any plus result (yet) because otherwice they would pay you the extras to keep you in good mood - if they aren't stupid Smile I have seen some very stupid managers/business partners fooling to get a SMALL extra earning, instead of get a MUCH BIGER pay if they just do a proper work and wait some...

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5 Re: Delayed pay, Harsh Employer on Mon Oct 19, 2015 5:22 pm

torivic1107


Arresto Menor
This business has been running for 3 months, They have not provided full set up of the workplace like computers etc. How can they expect profit right away??

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6 Re: Delayed pay, Harsh Employer on Mon Oct 19, 2015 5:57 pm

Lunkan


Reclusion Perpetua
torivic1107 wrote:This business has been running for 3 months, They have not provided full set up of the workplace like computers etc. How can they expect profit right away??
I don't know what type of business it is, but it's normal it's a loss when startup.

The suspicious parts in the deal are:
1/ They haven't provided the agreed equipment.
2/ "plus a percentage either which will be coming from their own pockets or from a small percentage from the rate that our clients pay".
After "or" it isn't odd, but it's very odd if they would pay you a bohnus from their OWN pockets BEFORE the customers have paid.
Is the deal realy written as the quote??
The "or" don't make sence, if the text don't tell WHEN to use each alternative.

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