Terms of Employment - Onerous change

N

Newfie

Guest
I work for a small professional company of about 120. We work in a niche industry so I know and have worked with a significant percentage of my competitors, some multiple times.

About a year ago our new management came out with a "Confidentiality Agreement" that was in reality a Terms of Employment agreement as it covered a whole lot of issues far beyond confidentiallity. At that time there was a nearly unanimous response. Several people got lawyers, etc. Management backed down and withdrew the agreement. In the meantime several of the more adamant people have left.

Now the Company has brought out an even more onerous "Confidentiality Agreement." Besides all the normal nonsense it has a long and dense paragraph about employment practices. If you leave this company then for two years you can in no way solicit current or FORMER company employees to work for you new company.

IF YOU DO YOU FORFEIT A YEARS SALARY.

This agreement has so many problems and issues there is no way I will sign it. I suspect that, if push comes to shove, much of our senior and upper level staff will leave. Fortunately we are in an industry that is in high demand and will be so for the foreseeable future so we have some leverage. (Not medical or related) So we may be able to back them down again.

My questions:

1. Having been here 14 years I don't know what other companies expect. Is this unusual?

2. When the day comes that we "talk" about this I will offer significant improvements to the contract. Is there a source of sample contracts and terms of conditions agreements for professionals?

3. I see no reason to sign, I see no reason to quit. I suppose they could fire me for not signing. As this was offered to the entire company en mass then I assume that if they negotiate with one they would be required to negotiate with others. Is that true?

4. Any other advise?

My many thanks for assistance.
 
If you leave this company then for two years you can in no way solicit current or FORMER company employees to work for you new company.

IF YOU DO YOU FORFEIT A YEARS SALARY.

I'm not a lawyer but to be honest I think it won't hold any water. The quote above.... what are they going to do if you leave and you solicit someone else who has left the company? Are they going to get your new employer to send your salary for the next 12 months to THEM???? Sounds ridiculous! Lots of companies have confidentiality agreements and some restrictions (I have one for example) but having been around a long time I've never seen one activated when a person does leave and goes to the opposition. What I have seen is where someone hands in their notice and advises the company that where they are going and it is a competitor - then I have seen them frog marched off the presmises immediately..... not a nice sight for anyone to see, maybe it doesn't pay to be honest when you are asked where you are going?

I wouldn't worry about that document too much.....

Roy
 
Quite right, I live in the US.

And, what I did not make clear was that violation of ANY of the 9 provisions would allow them to attach your pay.

Among many of the issues I have is that many words are not clearly defined. Trying to sort this out in court, should it ever end up there, would be a real Donnybrook.
 
ooooppps - sorry, I didn't twig that! So, my experience was related to local (Irish) situations - it may be different in the US. Having said that the example I gave above is based on my experience working for one of the largest US companies operating worldwide - but it is in an Irish context.

Best of luck
Roy
 
Sorry Newfie, the focus for this site is Irish - financial, employment, housing, finance, etc. You'll likely get advice pertinent to your situation elsewhere.
 
Yup, typical American bias. Everything is always about US.

Thanks for the help, nice site.
 
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