Hi,
I plan to join a NJ based consultancy company, which provide IT consultancy to clients on contract basis. The company has asked me to sign a contract.
An abstract from their employment contract is written below.
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Abstract:
If this Agreement is breached by the Employee at any time, or if the Agreement is terminated by the Employee, or by SRG with cause, less than twelve (12) months from the date of this Agreement or 2080 billable hours on client projects which ever is later, then the Employee represents, agrees and promises that he/she shall immediately pay to SRG, as reimbursement for all expenses, to the extent permitted by applicable law, the following:
• All training, education, certification, and other expenses incurred by SRG on behalf of the Employee to train, educate, certify, market and/or prepare Employee for the performance of the services to be provided hereunder;
• All immigration, travel, relocation, housing and board expenses incurred by SRG in recruiting and relocating Employee to enable Employee to perform the services required hereunder;
• If SRG is unable to immediately replace the Employee after pursuing reasonable efforts to find a replacement, up to one (1) month of the billable hours which the Employee was required to perform for the Client to whom Employee was providing services at the time of the termination, if applicable;
• Such costs that are sustained by SRG as a result of damages because of illegal disputes with any firm, company, corporation, or individual to whom Employee has been introduced directly or indirectly and to the Client's project because of Employee's breach of this Agreement;
• Any and all charges on any corporate credit/charge card supplied by SRG to the Employee which were not previously authorized in writing by SRG; and
• All such other expenses that SRG incurred on behalf of the Employee and which reasonably relate to Employee's position with SRG.
Without in any way limiting or waiving the amount of damages which SRG may seek from Employee hereunder, EMPLOYEE AGREES AND UNDERSTANDS THAT HE/SHE MAY BE OBLIGATED TO PAY SRG DAMAGES UNDER THIS PARAGRAPH WHICH MAY EXCEED $25,000.00.
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My Q -> If I join this consultancy and switch job in a short period for a better opportunity.
what will I be liable for? and what will be my obligation to the company.
What is law for employment contract in NJ?
A few say the company cannot bind you but some say they can claim liquidation damages for breach of contract.
Great_Guru, GotPR and others please throw some light on this.
Thanks
I plan to join a NJ based consultancy company, which provide IT consultancy to clients on contract basis. The company has asked me to sign a contract.
An abstract from their employment contract is written below.
-----------------------------------------------------------------
Abstract:
If this Agreement is breached by the Employee at any time, or if the Agreement is terminated by the Employee, or by SRG with cause, less than twelve (12) months from the date of this Agreement or 2080 billable hours on client projects which ever is later, then the Employee represents, agrees and promises that he/she shall immediately pay to SRG, as reimbursement for all expenses, to the extent permitted by applicable law, the following:
• All training, education, certification, and other expenses incurred by SRG on behalf of the Employee to train, educate, certify, market and/or prepare Employee for the performance of the services to be provided hereunder;
• All immigration, travel, relocation, housing and board expenses incurred by SRG in recruiting and relocating Employee to enable Employee to perform the services required hereunder;
• If SRG is unable to immediately replace the Employee after pursuing reasonable efforts to find a replacement, up to one (1) month of the billable hours which the Employee was required to perform for the Client to whom Employee was providing services at the time of the termination, if applicable;
• Such costs that are sustained by SRG as a result of damages because of illegal disputes with any firm, company, corporation, or individual to whom Employee has been introduced directly or indirectly and to the Client's project because of Employee's breach of this Agreement;
• Any and all charges on any corporate credit/charge card supplied by SRG to the Employee which were not previously authorized in writing by SRG; and
• All such other expenses that SRG incurred on behalf of the Employee and which reasonably relate to Employee's position with SRG.
Without in any way limiting or waiving the amount of damages which SRG may seek from Employee hereunder, EMPLOYEE AGREES AND UNDERSTANDS THAT HE/SHE MAY BE OBLIGATED TO PAY SRG DAMAGES UNDER THIS PARAGRAPH WHICH MAY EXCEED $25,000.00.
------------------------------------------------------
My Q -> If I join this consultancy and switch job in a short period for a better opportunity.
what will I be liable for? and what will be my obligation to the company.
What is law for employment contract in NJ?
A few say the company cannot bind you but some say they can claim liquidation damages for breach of contract.
Great_Guru, GotPR and others please throw some light on this.
Thanks