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FREELANCER - Client wants me to sign a NON COMPETE.

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vabryan


Arresto Menor
Hi Guys,

I hope you can help me with my concern.

I'm working as a homebased online freelancer (Website/Technical tasks) for an LLC(Limited liability company) based in florida.

Recently, I was asked to sign an Independent Contractor Agreement which includes a Non Compete clause that says:

Non-Compete.Between the term of this Agreement and eighteen (18) months upon resignation, the Independent Contractor cannot participate directly or indirectly in the ownership, management, and operation of any business similar or competitive to the business of the Company including but not limited to the establishment, operation, management, or participation in whatever form in any entity with the same business as the Company; soliciting on a freelance basis or as an employee of another firm with the same business as the Company or its Clients; or engaging in any form of business or employment with any other company whose work-hours coincide with the agreed time allotted for the clients/tasks of the Company or would negatively impact the performance of the Independent Contractor.

d. Right to be trained and Train.​ It is the right of the Independent Contractor to be trained, by any means, of his tasks and in the event that the Independent Contractor resigns his/her duties withthe company, the Independent Contractor agrees to train the replacement for up to 2 weeks after the replacement is hired whether this 2 weeks is after or before the Independent Contractor's notice to resign.

In case of the violation of this clause by the Independent Contractor, the Company will be entitled to
terminate this contract immediately and the Independent Contractor shall incur charges of up to Php
20,000.00.


=============

Based on my understanding, as an Independent Contractor, I am my own business.

Is it legal for this LLC to require me to sign a non-compete which will prohibit me from working in the same line of business for 18 months?

They never trained me on any of the tasks I do for them, but they are requiring me to train their replacement once I resign or if I was terminated.

They also decide on how long a task should be completed. They provide me a list of tasks that I need to do in a certain amount of time. (e.g. create wordpress site - 3 hrs) so I only get paid for 3 hours no matter how long it will take me to finish their requests.

I'm a freelancer, if they prohibit me from working 18mos after termination/resignation, aren't they violating my right to earn a living?

Is it also legal for them to impose fines when they are not even registered here in the Philippines (they don't have any subsidiaries here in the PH)?

Please, I need advice on what should I do...

I really hope someone could help shed light to my concern as this is really bothering me.

Thank you.

(I apologize for any grammatical errors, I'm not really that fluent in english Smile )

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attyLLL


moderator
You don't have to agree to it. Negotiate that they remove it because you are a contractor.


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arnoldventura


Reclusion Perpetua
No need for this non-compete agreement in your case. But just in case you agree to it, then you will be bound by it even though you are contractor. https://www.alburovillanueva.com/contracts

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vabryan


Arresto Menor
Hi po, the ICA states that theres no principal-contractor relationship but they dictate everything that I do. Mula sa kung papaano ko gagawin ang trabaho, hanggang sa kung gaano ko lang dapat ito matapos.
Everything that is on the ICA is the total opposite of how they do things in the company.
Meron po ako napirmahan na ICA nung 2016. If pipirma ba ulit ako ng bagong ICA mapapawalang bisa po ba ang luma? at yung bago nalang ang may bisa?

If for example, naterminate ako or nagresign tapos nakahanap po ako ng trabaho trabaho agad. Madedemanda ba ako ng company kahit sa US sila based at wala silang opisina dito sa pinas?
Maari din po ba ako magfile ng employment misclassification lawsuit if ever? Kasi empleyado po ang trato sa akin sa work except that sa ICA ko contractor ako? Salamat sa makakasagot

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