Go Back   English Forum Switzerland > Help & tips > Employment  
Reply
 
Thread Tools Display Modes
  #1  
Old 18.02.2012, 15:46
Member
 
Join Date: Jun 2011
Location: Zurich (Uetikon)
Posts: 223
Groaned at 4 Times in 3 Posts
Thanked 194 Times in 56 Posts
Mr. Happy has earned the respect of manyMr. Happy has earned the respect of manyMr. Happy has earned the respect of many
Employment termination clause..

Hi All

Here is my employment/contract problem and any answers /inputs would be much appreciated. First a quick background:

I am a UK citizen and was hired as an IT contractor to work for a company C (Client) in Switzerland. The Swiss Agency, say company A, arranged the employment and work permit but arranged yet another company P to do the Payroll. The written contract is between me, the consultant, and company P and another contract is between C and P. So A is out of the loop yet manages to take a 20% paycut. I have talked to C (where I physically work) and they are happy for me to re-draw another contract after offering my one month notice to P. This way I could be on a higher pay and use amore tax efficient arrangement with a new payroll company that caters for contractors (like a UK umbrella company).

The problem is that in my contract with company P, there is a clause where I am not supposed to go back to their client company(s) within 6 months of termination. Question: How serious and enforceable is this clause specially since P will have no clue about my intentions of going back to C and will it be worth their headache to fight this ? I hope I have not confused everyone with A, P and C and thanks in advance! J
Reply With Quote
  #2  
Old 18.02.2012, 23:20
Senior Member
 
Join Date: Aug 2011
Location: Birmensdorf ZH, ex-Lausanne
Posts: 415
Groaned at 15 Times in 6 Posts
Thanked 403 Times in 182 Posts
NicoleCZ has a reputation beyond reputeNicoleCZ has a reputation beyond reputeNicoleCZ has a reputation beyond reputeNicoleCZ has a reputation beyond repute
Re: Employment termination clause..

It isn't super enforceable on your end- the six months salary isn't worth the court fees for a lot of companies, but it depends on how angry they are. However, it could cause an issue with the contract linking C and P. Your cue should be whether P is ok taking that risk then, if so, you could be ok.

I've seen it happen a couple times in the IT field with these "non-concurrence" clauses. The only companies I have seen go after people had an ax to grind, FWIW.

I'm not suggesting you do anything contractually illegal, I'm just saying that I have never seen it enforced by a company who wasn't out for blood because they got burned. IMHO if you leave on good terms and are discreet about it...

Anyway, good luck!
Reply With Quote
  #3  
Old 18.02.2012, 23:51
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Employment termination clause..

Quote:
View Post
Hi All
This way I could be on a higher pay and use amore tax efficient arrangement with a new payroll company that caters for contractors (like a UK umbrella company).
J
Is that going to work with your work permit? just a thought.
By working through a CH payroll company you are entitled to unemployment pay after 12 months.
Reply With Quote
  #4  
Old 19.02.2012, 10:38
tom tulpe's Avatar
Forum Veteran
 
Join Date: Jul 2011
Location: Horgen
Posts: 1,182
Groaned at 21 Times in 19 Posts
Thanked 1,409 Times in 646 Posts
tom tulpe has a reputation beyond reputetom tulpe has a reputation beyond reputetom tulpe has a reputation beyond reputetom tulpe has a reputation beyond reputetom tulpe has a reputation beyond repute
Re: Employment termination clause..

Quote:
View Post
Is that going to work with your work permit? just a thought.
By working through a CH payroll company you are entitled to unemployment pay after 12 months.
He's a UK citizen, so the work permit is not an issue really.

OP: is the contract with the agency under UK or under Swiss law? Does it provide for any sort of compensation in return for you agreeing (!) not to work at the company you were previously working at? To be honest, these clauses only make sense if your contract is with the agency who "hire you out" to a client - if you have a work contract with the client itself, which contract with the agency would you "terminate"?
Reply With Quote
  #5  
Old 19.02.2012, 10:48
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Employment termination clause..

Quote:
View Post
He's a UK citizen, so the work permit is not an issue really.
?
I guess the Swiss will want some taxes & social payments from someone with a B permit, I cant think they will let someone live here tax free.
Reply With Quote
Reply

Tags
clause, client, employment, termination




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
[Work contract] Termination clause prevents working for competitor - normal? Just Employment 13 21.12.2013 12:50
Termination of employment on assignment Randolf63 Employment 21 06.01.2011 12:47
Employment Termination Lippy Employment 2 21.10.2009 18:42
Employment contract termination Guest Employment 29 23.04.2009 23:11
Is this employment contract clause ok as looks a bit suspicious.... ashtraxx Employment 3 28.05.2008 01:52


All times are GMT +2. The time now is 20:27.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0