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Help! What is the right thing to do?

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1 Help! What is the right thing to do? on Wed Oct 28, 2015 9:35 am


Arresto Menor
First off I have employees that I have dispatched to a client (yes we are an agency) and after 3 good working years, I find out that some of my employees was being directly hired by our client. This is a breach of contract since we were not informed. In the contract it states

Should the 1st Party decide to hire and employ any of the 2nd PARTY’s employees after their assignment therein, the 1st party may do so free of charge and with prior notice to 2nd PARY, provided, however, that the total period of assignments of the employee concerned has completed (6) six months work assignment.

Now on my contract with the employee it states that:
1.The PROJECT EMPLOYEE further accepts and understands that his assignment is on temporary/contractual basis and that he will not be allowed to work for the client without the knowledge of the EMPLOYER or to work for appointments notwithstanding the total duration of this contract. He understands that he cannot in any way use his assignment to be casually nor regularly employed with the subject client.
2.In any case of registration, PROJECT EMPLOYEE shall provide the EMPLOYER at least fifteen (15) days prior notice.
3.The PROJECT EMPLOYEE binds himself to comply with the rules and regulations of the EMPLOYER and that of its client.
4.The PROJECT EMPLOYEE understands that failure to comply with the policies of the EMPLOYER and that of the client shall result to forfeiture of all the benefits due him.

Client action:
1. First they sent a notice to terminate most of our employees immediately. We then responded to at least give 15 days notice to be fair with the employees.
2.They then sent a memo advising that they want all our employees terminated - including our contract with them - effective one month from receiving our response.

Now the client wants to terminate all our employees assigned to them and then I found out that they will be getting another agency. We were not informed and the employees say different excuses or reasons (I don't blame them because they need a job) but I want to know my legal standing on this issue. If my employees were to transfer to another agency or be directly hired without our consent, is that enough grounds for me to forfeit any receivables?

Also, they have been absorbing some of our employees already without our consent even before but we just let them since they are not terminating the contract with us. I can reassign the said employees to another account but in the real world, the employees would choose what they're are already accustomed to which is their current job. I want to be fair to my employees but also fair on the company's part as well. Termination effective date will be late november. Does it mean I still have to provide 13th month pay and other benefits even if the said employees are no longer with our company? What would be the best and wisest thing to do?

Any suggestions or comments will be greatly appreciated. Thank you!



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2 Re: Help! What is the right thing to do? on Wed Oct 28, 2015 9:22 pm


Reclusion Perpetua
Well. We never know what judges decide Smile but
it's sure a break of contract.
But your contract is TO KIND leting them assign YOUR employee WITHOUT COMPENSATION if they ONLY inform you. So if you winn, it will be only a SMALL break of contract worth very litle or nothing.
It had been different if the contract had said they have to pay your share as long as they have the employee coming from your agency... So I suggest you change that part of contract.

If the court find them guilty to breaking they have employed your people TO EARLY, THEN something easy messurable in MONEY have been broken. You can count if such case can be money enough for you to go to court for.

About the fast termination - Has something bad happened TO the customer by your agency/employee? Otherwice it seem they try to SCAM you...

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3 Hi Lunkan! on Thu Oct 29, 2015 11:17 am


Arresto Menor
Hi Lunkan! Smile

Thank you very much for replying. Well I'm not really planning to bring this to court really. I just want to be ready just in case I need to and as much as possible know my options so that I don't have to shell out more money and still be fair to my employees. Nothing really bad happened as far as we know, but rather a conflict of interest when my client's company changed their HR officer. She had been bad mouthing my company, and other co-employees as well, that even her colleagues and some of my applicants filed several cases against her. I still don't understand why my client would employ such a person - but that's beyond me. Going back, since there was a breach of contract, I don't find the need to give out 13th month pay and other receivables to my employees that chose to be directly hired. Although, can I also implement this on my employees that chose the other agency too? I want to be fair to my company and my employees which is why I need to know all the options that I have. Once again, I appreciate your answer very much. Hope to hear from you again. Thank you!



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4 Re: Help! What is the right thing to do? on Thu Oct 29, 2015 7:26 pm


Reclusion Perpetua
Perhaps that bad woman have relatives or get bribes from that other company...

Well. MORALY the employee haven't been fair to you,
but LEGALY I BELIEVE you need to pay PART of the 13th month if they have worked for you more than 6 months from start. I BELIEVE the extra pay it's x/12 part of a normal month salary where x = how many months they have worked for you this year. But I suppouse someone else can answer better than me about this part. Normaly such is paid when the employment ENDS. Have they asked for any 13th month? Perhaps they are to embarrased by they were unfair to you to ask for any from you... Smile

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