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.
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!