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"At Will" employment with notice period - query

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idlivadasambhar

Junior Member
What is the name of your state (only U.S. law)? California

Hi,

I work for an India based Tech firm and am based out of California.

My offer letter states "ABC (employer) is an “at-will” employer. This means that either ABC (employer) or the employee may terminate the employment at any time, with or without cause, by giving the other party notice of not less than three (3) calendar months in writing or on such other terms and conditions as may be mutually agreed by the parties in writing."

Does this mean, I need to provide my employer with 3 months notice, if I decide to quit or my employer has to give me 3 months notice or 3 months severance pay if they decide to part ways with my employment ?

Best regards,

Idli
 


PayrollHRGuy

Senior Member
"At Will" employment in the US means that the employee can quit whenever they like and the employer can terminate whenever they want. It is the default agreement unless a contract that says otherwise is in place.

What your employer has done is create a contract that gives both the same rights but with 3 months warning required. Pretty stupid on the part of the employer.

There is also a better than even chance that the offer letter won't stand up in court as a valid contract.
 

adjusterjack

Senior Member
There is also a better than even chance that the offer letter won't stand up in court as a valid contract.


I would lean toward that conclusion myself, but until we see the entire letter we don't know if there are any "gotchas" that might make it an enforceable contract.
 

idlivadasambhar

Junior Member
"At Will" employment with notice period - query - Employment letter text copied

I would lean toward that conclusion myself, but until we see the entire letter we don't know if there are any "gotchas" that might make it an enforceable contract.

Copied below is the text in the employment letter:

________________________________________

This is to inform you that with effect from Date of Landing (“the Relocation Date”), you would be transferred from Chennai, India to the San Jose, CA, USA office of ABC
(“ABC” or “the Company”) at on a permanent basis.
With effect from the Relocation Date, the terms and conditions as contained in our previous agreement will come to an end and your Role Designation with ABC (the “Company”) will be Account Manager and you will be entitled for the following:

The terms and conditions upon which you will work in the US are as follows:

1. Remuneration:

a. Base Salary
While employed at San Jose, CA, USA you will receive a Base Salary of USD XXX,XXX per annum, which will be paid monthly in accordance with the Company's normal payroll procedures. Your growth and increase in salary will depend solely on your performance and contribution to the Company; no increase is guaranteed. Our increment and promotion cycle is once in a year.

b. Variable Pay Plan:
In addition to your Base Salary, you will be eligible for a Variable Pay pursuant to ABC’s Variable Pay Plan. For this year, the maximum bonus you can earn will be 100% of your paid out Base Salary. In order to receive any variable Pay payment, you must meet the eligibility requirements, as described in the Variable Pay Plan. Actual payments will be determined by the Company and individual performance and will be prorated based on the number of days worked in each cycle. The Variable Pay currently in effect is enclosed with this offer letter.

2. Travel Expenses & Reimbursements
The Company will also pay or reimburse you for reasonable travel, entertainment or other expenses incurred by you in the furtherance of or in connection with the performance of your duties hereunder in accordance with the Company's established policies.

3. Transfer and Relocation:
Please note that the Company may need to transfer employees to Company locations or client sites other than the ones they were initially hired to work at. Accordingly, we want you to be aware that you may be transferred in the future based on the Company's business and with prior approval from relevant authorities, you may be eligible for reimbursement under the company’s relocation policy. Relocation is defined as the transfer of work to a new location which is 50 miles or more from the existing work location of the employee.

Expenses for which you may be eligible for reimbursement include travel to new location for yourself and applicable family members via air, personal car or rental car, transportation of goods and movement of one vehicle within the USA. All reimbursements will be based on actuals upon submission of bills up to the policy limits and policy guidelines.

4. Notice Period
ABC is an “at-will” employer. This means that either ABC or the employee may terminate the employment at any time, with or without cause, by giving the other party notice of not less than three (3) calendar months in writing or on such other terms and conditions as may be mutually agreed by the parties in writing.
It also means that the job duties, title, responsibilities, reporting level, compensation and benefits, as well as ABC's personnel policies and procedures, may be changed at any time. The “at-will” nature of the employment may only be changed by an express written agreement that is signed by the employee and the Chief Executive Officer of ABC Limited.

5. Other Terms and Conditions
This employment is contingent upon
(i) Your signing and agreeing to be bound by the Company’s At-will, Confidential Information, Invention Assignment and Arbitration Agreement,
(ii) Your demonstration that you are legally able to work in the United States and
(iii) Receipt of a fully executed “Non Compete and Non Solicitation Agreement” in the form attached hereto (Annexure I).

In ABC, there are policies that are linked to performance management, career growth and annual compensation review of an employee and these policies will be applicable to you. You will also be governed by the rules and regulations of the Company as applicable to your category of employees.

As a Company employee, you will be eligible to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to similarly situated employees of the Company. You should note that the Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time.

You agree that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company or the full discharge of your duties with the Company.

As a Company employee, you will be expected to abide by Company rules and regulations, including submitting weekly time records to your supervisor. You also agree to maintain the confidentiality of all confidential and proprietary information of the Company and agree, as a condition of your employment, to be bound by the Company’s At-will, Confidential Information, Invention Assignment, and Arbitration Agreement.

In the event of any dispute or claim relating to or arising out of our employment relationship, you and the Company agree that all such disputes shall be fully and finally resolved by binding arbitration conducted by the American Arbitration Association in Alameda County, CA. However the parties may mutually agree upon an alternate venue. HOWEVER, we agree that this arbitration provision shall not apply to any disputes or claims relating to or arising out of the misuse or misappropriation of the Company's trade secrets or proprietary information.

This letter, the documents incorporated herein by reference and the Company’s At-will, Confidential Information, Invention Assignment, and Arbitration Agreement represent the entire agreement and understanding between you and the Company concerning your employment relationship with the Company, and supersede in their entirety any and all prior agreements and understandings concerning your employment relationship with the Company, whether written or oral.

The terms of this letter may only be amended, canceled or discharged in writing signed by you and the Company.

In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, this letter shall continue in full force and effect without such provision.

You acknowledge that you have had the opportunity to and have carefully read and fully understand all the provisions of this letter, and are knowingly and voluntarily entering into this letter.

In token of your acceptance of this letter, kindly sign and return the duplicate copy at the earliest to the undersigned at:
_____________________________________________
 

idlivadasambhar

Junior Member
Copied below is the text in the employment letter:

There is also an Annexure 1, whose text I have copied below:

ANNEXURE I
NON COMPETE & NON SOLICITATION AGREEMENT
In consideration of the employment of the undersigned (“Employee”), ABC, including any of its affiliates or direct or indirect subsidiaries (collectively, the “Company”), and as a condition of continued Employment, Employee agrees as follows.

1. Covenants Regarding Competition: During my employment with the Company and for a period of six months after my employment is terminated by the Company or by me for any reason, with or without cause I shall not:

a. Seek or accept any employment from a named competitor of ABC, if my employment with such named competitor would involve me having to work with a Customer with whom I had worked in the twelve (12) months immediately preceding the cessation of my employment with ABC. For the purposes of this Clause, "Named Competitor" shall mean the following entities and their wholly owned subsidiaries:-
i. GHJ Limited
ii. TYU Limited
iii. MBI Global Services
iv. STC Corporation
v. CVB Limited
vi. CBML

b. Seek or accept any employment with any customer of Company for whom I performed services as an Company employee within the last twelve months of my employment with Company.

c. Solicit business from, do business with or render services to, in any capacity, directly or indirectly, any entity that is or was a Company client or customer for whom I performed services as an Company employee within the last twelve months of my employment with Company, for a purpose or in a manner that is in any way competitive with Company’s business.

If, during or after my employment with Company, I seek work elsewhere, I agree to provide a copy of this Agreement to any person or entities seeking to hire me before accepting employment with or engagement by any such person or entity.

2. Solicitation of Employees: I agree that for a period of twelve (12) months immediately following the termination of my relationship with Company for any reason, whether with or without cause, I shall not either directly or indirectly solicit, induce, recruit or encourage any Company employee to leave Company, or take away such employees, or attempt to solicit, induce, recruit, encourage or take away employees of Company, either for myself or for any other person or entity.

3. Injunctive and other Relief: I acknowledge that each of the restrictions contained in Sections 1 and 2 of this Agreement is reasonable and necessary in order to protect legitimate interests of Company and its customers, and that any violation thereof would cause irreparable injury to ABC and / or its customers for which money damages would not be an adequate remedy. I acknowledge
and agree that in the event of any violation or anticipated violation thereof, Company shall be entitled to seek, from any court of competent jurisdiction, temporary, preliminary and permanent injunctive relief, and / or any other equitable specific relief.

4. State Law Considerations: The provisions of section 1 shall not apply to activities occurring in the State of California or any other State in which such provisions may not be enforceable. However, the Parties acknowledge and agree that nothing in this Section shall prevent or prohibit ABC from seeking any remedy under this Agreement or as may be available to it by law in California or any other State with respect to activities of the Employee after the termination of his / her employment with ABC.

5. Choice of Law: This Agreement and the rights and duties of the Parties hereunder shall be governed by and construed and enforced in accordance with the laws of the State of New York, without regard to principles of conflicts of laws.

6. At-will employment status: Nothing in this addendum shall be interpreted to be in conflict with, or to eliminate or modify in any way, the At-Will employment status of the undersigned employee.

Name of employee : Idli Vada Sambhar
Signature of the employee : _________________________
Date : ___________________________
Company Confidential - This communication is confidential between you and ABC Limited
 

PayrollHRGuy

Senior Member
This looks to me as someone in India took a pretty generic employment agreement and modified the meaning of "at will" to be more in keeping with the standards of employment in India. "At will" means something in US law. I'm going to have to let one of the lawyers chime in on what the changing the meaning of "at will" will do to the agreement. I don't see penalty for either of you spelled out in the contract.
 

Zigner

Senior Member, Non-Attorney
Frankly, contract review of this nature is beyond the scope of this forum. You would be wise to consult legal counsel.
 

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