Ask HN: Company got acquired, new contract seems oppressive
The new employment contract stipulates the usual oppressive confidential information and IP assignment things, detailing how the company owns anything I come up with. The state I'm in specifically protects my rights to things I create entirely independently (outside company time and equipment) but the contract also has a clause that says I must disclose any existing inventions or ideas to the company now and that anything not enumerated belongs to them and that by not listing I am acknowledging that the invention idea was not developed or conceived before the commencement of employment.
Assuming I were to sign and return without enumerating any specifics they would own the IP to anything I've done previous to this?
I'd love any advice anyone here has, but perhaps a better question would be-- Are there any "uber for lawyers" services online where I can pay to have someone with bonafides read through this for me?
290 comments
[ 2.2 ms ] story [ 320 ms ] threadI worked at a company that was acquired earlier this year and I didn't care for the new employment contract. Unfortunately, the sale was contingent on a certain percentage of the team signing the new employment contract. I had a lawyer look at the whole thing and he told me that because of the way the deal was worded I could sign and quit without affecting things.
I looked at the contracts a ton myself and basically made no sense of it. The lawyer spent a couple hours and it was a big help.
When hiring another firm I did a lot of prelim research on Avvo.com - they give you a good amount of detail and user reviews without having to create an account. It's easy to find the attorneys who are listed on there without having to use Avvo's system.
I still think the best way to find an attorney in a specific field is to ask other attorneys in any other field.
https://www.kaanoon.com/
'Generic legal language' is not your problem, specific legal language applicable to this specific case is the problem and if $20 is the differentiating factor then you might as well quit the job or sign the contract anyway.
Which pointed me to http://lawyers.findlaw.com/lawyer/firm/employment-law-employ...
FindLaw is a Thompson Reuters business, so I trust it enough, and it came up with 43 results which it seems should be enough to find something adequate.
[1] http://english.ida.dk/why-join/core-benefits/counselling
Failing that, contact your state bar association. For example, the CA bar association offers a list of certified lawyer referral services that will help you find a lawyer with the right expertise: http://www.calbar.ca.gov/Public/LawyerReferralServicesLRS.as...
Which is why I think it was necessary to be very direct about the issue
Next time try something like, "Yes yes yes, definitely find a specialist employment lawyer. Referrals and the state bar are a good way to do that, but make sure you end up with somebody who has spent a few years dealing directly with cases like this."
Big Unions often employ or know top notch employment lawyers (it's not a focus for unions, but they still might work together on select cases), employment lawyers that can scare the acquiring company before negotiations begin :p
http://m.chambersandpartners.com/guide/usa/5
Don't ever assume something a company is doing is on the up-and-up.
Or was this an interview with the acquiring company?
So I suggested he should get a lawyer to review it. In the mean time, they started pressuring him to sign, he told them it was with the lawyer right now (though he hadn't yet found one, he was just stalling), and they freaked. Cut him a check of a few thousand dollars to go away and agree to a gag order.
But I didn't agree to shit! However, I still won't name them because I'm fairly certain they'd launch a full-frontal libel lawsuit against me. Just one of those kinds of places.
This sort of term is exactly why you get a lawyer to review the contract. If it's enforceable (big "if", in many places) then that's a guaranteed year you can't realistically either be employed by anyone else in the industry or be working on something like open source projects to keep your skills up to date. As career death sentences go, that's probably pretty close for anyone early in a career in software, web development, or any similar creative field.
You should mention what company it was, I would love to go to a few interviews and then walk away with a settlement check for no reason.
FWIW: While this clause may be oppressive, it is not uncommon. It has been in (almost?) every employee agreement I've signed. I always filled in the addendum to exclude ideas I had previous to the job, that I wanted to pursue on my own.
I ask because there are countless scenarios when an attorney clears something and an expensive lawsuit still occurs, e.g. patent trolls.
If you want non-legal advice, walk away. If you wanted to be working for BigCo, you could have joined up years ago. You didn't. Go find the next thing that's right for you instead.
Why the down votes?
This is a serious suggestion; I don't know the exact situation in America but in Europe all trade unions have trained advisers looking at stuff like this every day.
Going to an union is a much more effective and cheaper solution than every employee talking to an employment lawyer on their own.
I would have guessed that most union reps consult lawyers when they finalize a contract and don't have the law background needed.
I think the best way to describe danish unions are that they are a mix of us unions (that i don't know that much about) and law firms for worker.
You just call them, explain your situation and hear what they say.
In general they give you a quick evaluation and then say: In order for us to help you, you need to be a member - the price is xxx pr. month - if you sign up now we will work on your case straight away, we also have an insurrance that covers lawsuits and some other benefits.
Examples: http://www.ukape.org.uk/ https://www.prospect.org.uk/
Don't American doctors and teachers have a union?
c.f. Lawdingo (YC 13), which is Uber for lawyers. No relation; never pulled the trigger on actually using it.
Incidentally, my last employment contract had a similar clause in it. After consulting with my bosses, who thought it was the usual boilerplate and didn't really expect a young engineer to have meaningful IP, we came up with a list which looked like:
1) Bingo Card Creator [the only IP I was really worried about] 2) Various contributions to the OSS projects listed in Appendix A [these days I'd literally just print a listing of all repos in Github] 3) Miscellaneous computer programs, inventions, and documents which exist on physical or electronic media as of $DATE and are impractical to list -- $COMPANY acknowledges this disclosure is adequately specific for its purposes
I usually include, as one of the disclosed items, something along the lines of "other open source or business ideas I may come up with or have come up with on personal time and while using personal, non-company, property."
One of our employees did this too, and I took no issue with it. My guess is if you have an employer suing you for infringement based on work you did there, you have burned a bridge and have much bigger problems than just this lawsuit.
Edit: IANAL, this is not legal advice, etc.
Where I come from, it is also fairly standard practice for anyone who is any good at all to seek to amend such loaded terms before signing the contract. Just because it's in the default contract that the company lawyers wrote, that doesn't mean you have to actually accept it unchallenged.
Honestly? Most employees just sign the damn thing. Including me, with the caveat that I posted in the above comment. It's easier than dealing with redlining a contract. 'patio11, below, seems to do something similar.
Sure, I understand that.
This is why I favour regulation/legislation to protect employees who don't understand or won't be aware of the implications. As with consumer protection legislation, you often have a substantial imbalance in power between an employer and an employee, starting with the fact that the employer is usually the one writing the first cut of the employment contract and it often gets treated like a standard form contract in practice. I think it is therefore reasonable to limit the amount of sneaky things that are enforceable if they're included in the small print on page 74.
This is also why I recommend everyone in our industry (and most others) to have any proposed employment contract reviewed by an actual lawyer before agreeing to it.
Not to discount your experience, but I actually just had this happen. I wound up walking away from an otherwise nice offer because they weren't willing to budge on their "we own everything you do, inside or outside of work" clause.
So while it may be rare, it does happen.
It's a shame, though - I think I would have had a lot of fun working there and believe I would have made good contributions to the team. I'm disappointed, but I consider it their loss. Oh well.
Companies keep giving me these contracts. I keep saying no. So far, no company has ever made their job offer contingent upon signing away every idea I come up with in the shower. The day that happens I will walk, though.
One thing I have noticed, though, is that it is a pretty reliable red flag, because it means one of two things:
* They don't read their own contracts (one employer actually seemed surprised when I read the clause back to him). Sign of incompetence.
* They are actually unreasonable people. Strong likelihood they will try to fuck you over in lots of ways.
That's been my experience as well. In fact, towards the end of the period when I worked as an employee, this became one of my go-to tests about whether to accept a job offer.
That said, I once had exactly the described problem: post-acquisition, new company wants to adjust a lot of contractual wording on things like IP heavily in their favour, at a software business where many of the staff are also creative outside work in one way or another. Most of my colleagues didn't realise the implications of the proposed IP clauses and in particular the potential impact on their time outside office hours until these dangers were pointed out, but many strongly disliked the new terms once awareness was raised.
Without getting into details I possibly shouldn't, let's just say that what the acquiring company's lawyers or HR people would like to happen will probably be outweighed by a significant proportion of staff from the acquired company refusing to sign the oppressive deal and threatening to walk. If you can reach critical mass, management is likely to step in and do what they have to so they can protect the new investment and CTA. In the end, the wording of the relevant sections in our new contracts was identical to the corresponding sections in our old contracts.
Incidentally, probably one of the biggest mistakes of my professional career was sticking around for too long after I already knew what kind of business the new employer was from their initial behaviour. With hindsight, I should have given them a fair chance once they'd backed down -- a few months, perhaps -- but then having confirmed that the new corporate culture was similarly unwelcome in many other respects I should have started looking long before I actually did. YMMV.
I strongly disagree. It's not unusual for a new employer to try to pull a fast one here, but IME the actual standard among reasonable employers and employees involves wording like "in the course of your employment" or the local equivalent. In short, what you do on company time, with company resources, or in connection with your work at the company is theirs, but anything else is yours by default. This sort of arrangement protects their interests just fine without granting them unnecessary and unreasonable control over their employees' lives outside work, at which point whether the employer is trying to screw the employee on this or not is academic because they have no contractual ability to do so.
But it doesn't. What it does is make the employer win by default, even for things that have nothing to do with the job. Given the dramatic power imbalance that almost certainly exists between employer and employee anyway, this is the wrong way around. In fact, it's such a bad idea that there is now statute law on the books in various jurisdictions -- including, as I understand it, some states in the USA -- explicitly to nullify such terms in employment contracts.
I'm afraid this matches neither my experience and, I'm willing to bet, the experience of just about everyone who's worked in the field in the US in the last couple of decades. Again, I know nothing about how things work in the UK. In the US, this stuff is a formality akin to all the other formalities of an employment contract, say, your tax, 401k and health insurance forms.
The fact it is common (and, sadly, it is) does not mean it is right.
Well, if it's meaningless you can take it out.
So suggest that.
You'll quickly find out when you suggest that, that "just a formality" usually translates as "ok, maybe it's not such a formality after all, but just sign the damn thing already please". Red flag, in other words.
Similarly, "standard" is another ridiculous term to use in contracts. There are no "standard" contractual clauses, there are only common contractual clauses, and "common" does not necessarily mean "reasonable". There are plenty of very common and highly unreasonable clauses like the one the OP complained about.
Both terms are examples of weasel words when used in the context of contracts: https://en.wikipedia.org/wiki/Weasel_word
I never said that. So your rephrasing my words into something I did not say and then wikipediaing me about 'weasel words' seems particularly ill-placed and insulting.
Since it very often isn't actually a formality, when the other side in a contract negotiation is using phrases like "just a formality" it very often qualifies as weasel words.
Edit: I guess the moral of the story is that something being dismissed as 'standard' is a red flag to confirm that on your own time. Maybe it is a standard, but if that's the only explanation they're using, it's not good enough to stand on it's own.
If you have a nicer, professionally-vetted, less scary-sounding AoI, that's terrific. I'd encourage you to post it somewhere as a template.
It's ultimately about power. You rely upon the company for sustenance, it doesn't rely upon you. That manifests in contractual terms which are basically designed to give the company license to completely screw you.
If the "list everything you've ever done" argument is reasonable, then the logical counter is actually rather stronger than that.
The true equivalent would be that the company must list all inventions and IP they have ever created in their history, including before you joined. Rights to anything they don't list automatically belong to you as the new employee, even if it was created on a work PC during working hours as a result of an employee's current job and the employee was duly paid for it. And if the employer then inadvertently grants rights to one employee and then the same rights to another one later, as they will for any invention or other IP they forgot to list, they are legally on the hook for any damages when it turns out they couldn't actually grant the rights the second (and third, and fourth...) time. Finally, employees are not required to accept any new items the company wants to add to its list of claimed inventions and IP, even if the new item is entirely created by staff on company time and using company resources.
I think it's fair to say you'd have trouble finding a company lawyer who advised their client to accept that kind of term. And yet companies attempt to impose the equivalent on their employees all the time.
I'm really not sure how you can think this is a decent way to phrase things just because 'this is standard practice'.
Some contracts state "The company owns everything you do, even in your spare time". I can't see how this protects the employee at all.
Pretty sure the parent was making a dry joke. 😉
1 how do you as a civillain know which ones aren't enforceable (justicable) 2 can you afford to fight an employers
So yes - I'd strongly agree with the overall sentiment that anyone with contractual issues with an employer speak to a employment lawyer. Interestingly enough in some situations UK law requires that the employer pays for the legal advice...
That said, it is always a good idea to keep really good records of what you're doing on your time, and the things you have "baking" when you join a company. That will help you in two ways, one it makes this paperwork trivial to fill out [1] I know of one case where it started a discussion with some IP people at the hiring company who then offered a lump sum to purchase the disclosed IP.
It is pretty standard language these days. Given the hiring challenges you have the option of working with a lawyer to create an agreement that is more agreeable to you, however failing to come to terms on that agreement is a perfectly reasonable reason for someone not to hire you, even if they had previously said they would.
Last tip, if its something that keeps you up at night you're probably not going to be happy, long term, working for anyone but yourself.
[1] One tip, you don't have to have list details here just a reference identifier, so for example if you're working on "Studmuffin: The Game" just mention "all rights related to the game: Studmuffin: The Game" on your disclosure form, and later if the question comes up (like they try to say you some how worked on it on their time) you can refer back to your dated notes from before your employment and your records that you kept on time spent that wasn't company time or company equipment.
And when I went to Sun my 'disclosures of previous inventions' was empty, when acquired by IBM it was about a page and a half. Of course if they are going to be somewhat detailed, so am I. So for example I now always mention my web site (which is much neglected of late but has a few ads which make a small amount a money each month), between my Google and Blekko engagements I had a pitched a storage idea to a couple of people, no one has actually built it yet so I keep it on the list, Etc. The sorts of the things you tend to collect over the years. Nobody has ever had any issue with me putting these things on the pre-disclosure list.
Generally I've found the much more onerous terms are the requirements for using your personal device to access work resources, they have gotten quite extreme (which I understand, given the security challenges). When the agreements start to reach out to computers or what not that I own and that do not have any connection with my employer I start to get a bit twitchy :-).
Bottom line, I think Sun's AoI had the same Intention as the ones the OP is talking about but it wasn't as verbose about it, and over the years I've noticed more and more verbiage to make it really clear that when you work for company X they really own the things you develop on their time, even if you think you're contributing to an open source project as part of your job. That latter wasn't even a 'thing' when I joined Sun.
Nobody has ever had any issue with me putting these things on the pre-disclosure list.
This has remained a happy invariant. Short of the rare case of ending up in a deeply adversarial relationship with your employer, I don't think anyone gives much of a hoot about this stuff. But it's useful to write it down.
We haven't seen the paperwork, but a deliberate change in employment contract is not something that's done just for fun or on a standard basis.
It doesn't seem to benefit the original poster to sign the contract as it stands. Contracts are supposed to be an equitable agreement between two parties - there is no "standard". Standards which benefit only the employer can and should be questioned.
OP should speak to an employment lawyer about the contract as a whole and any clause they are concerned about.
I've signed employment contracts, not in the US.
I've hired lawyers to review employment contracts on several occasions.
One reason that advice here on HN is insufficient is because we don't know how or whether any clause affects or will affect the OP. A lawyer will be able to discuss the full consequences of the contract with reference to the OP's personal situation.
In my personal case, lawyers have consistently advised me that an Intellectual Property transfer clause is strongly against my interest to sign.
When I have taken this back to employers, this has led to quick and easy resolution - in both directions. In one case, that clause was stricken happily and with no problem. In another case, it quickly became obvious that the employer was acting in bad faith and I was happy to leave.
You'll forgive me, but surely, in this case at least, this makes further conversation pointless. It's a question about a US employment contract and whether its clauses are onerous, unusual and how to handle them. A topic in which, as far as I can tell, by your own admission, you have neither experience nor expertise. Correct me if I've misrepresented your position in some way.
So on what basis do you claim it is "standard"? In which states?
I have no reason to believe it isn't fairly common but that's very different. I've come across clauses like that in various places in Europe too (though I've then usually been able to point out that under local law most of their clause is null and void).
I've given you a counter-example. I worked for a venture funded Silicon Valley startup. I didn't sign anything that gave them rights to anything created outside working hours on my own equipment. Neither did anyone else there.
I don't doubt it is common, but I've also not seen anything to indicate that it's something you'll meet often enough that I'd consider it "standard". Maybe my company was the one single exception in the entire US, but that seems unlikely to me, especially given the other comments here.
OP: this is a pretty standard clause. A common phrasing in CA would be
2870: http://www.leginfo.ca.gov/cgi-bin/displaycode?section=lab&gr...I've signed very similar assignments for 5 different companies.
It is critical, however, to read your contract. I recently told a company (founded by ex-google, backed by tier 1 vc) to DIAF because they dropped in their 16 page (!!!) employment contract a few special terms:
if I conducted any company business on my cellphone or personal laptop they had the unlimited right to audit it.
I was like, well, if I take a miscellaneous call on my cellphone, that's conducting company business. So you now have the right to read my personal email on that same phone? Or if I answer a work email from my personal laptop, the same deal? Hells no.
But "...to the fullest extent allowed by law" seems pretty much like what I'm talking about - a "standard" clause that benefits the employer maximally and with unlimited scope. It appears to automatically update with any changes to that law to ensure that it continues to benefit the employer maximally and with unlimited scope.
It's implicitly threatening language that is otherwise only seen with "Shoplifters will be prosecuted..."
I would be pretty concerned about that. The fact that you have accepted that as a standard, personally or culturally, doesn't make this any less of a concern for me.
Accepting clauses like this, as standard without question, is bad for everyone in the labor market.
OP should argue with such a clause if it doesn't suit them.
What about acquisition as in this case? That seems rather expected. It makes sense that procedures and policies change (including what contracts look like) to reflect what the "parent" company use, and there may be new set of IP brought to the company (which may cause new conflicts). And as the post above mentioned, it should benefit the employee as well by having a document listing what's truly his.
Acquired employees legally remain on their original employment terms and usually have rights to continue uninterrupted work on those same terms. This right also applies if a company is liquidated and reforms.
Given that employees have this legal right, and that acquiring employers must know this (employees tend to be less aware), an acquiring company holding a new employment contract should be treated with extreme suspicion. The company must negotiate what they need, or the employee can just continue on the old terms.
I would suggest an employment lawyer is necessary in that situation. Particularly, since just ignoring the employment contract may constitute implicit agreement.
So this is a non-negotiable reduction in the legal position of the employees at best.
I'm not sure why you think that is true.
So this is a non-negotiable reduction in the legal position of the employees at best.
This is an extraordinary statement that requires the requisite evidence. I don't think it matches US law or precedent, it simply seeks to formalize it, while giving the other party a full and fair negotiating position.
Every single case I can think of where employer and employee/buyer got into such a spat are the ones where such agreements were not in place. Can you think of a counterexample?
My anecdata differs. I was with a company that was acquired and I had to sign a non-compete that did not have with my previous employer. (There may have been other things as well in the contract but I don't remember.) Said acquirer, BTW, has been one of the most vocal in preventing Massachusetts from putting non-compete restrictions in place
I can absolutely 100% guarantee you that if there ends up being a legal dispute here, anything and everything signed by the employee will be used against them to the extent possible. Nothing is going to be "a formality" in that case, which is the only case where it really matters.
"Standard" is just another way of saying, "we hope you don't try to negotiate anything, because that would be inconvenient."
Both are ways of trying to make an already lopsided transaction even more unfair.
My response to "standard" would be, it may be standard for you but it's not standard for me, so I'm going to check it out, and if I want changes I'll suggest them. If you're inflexible on making changes, then I guess we won't sign. My response to "formality" would be, if it's important then it matters, and if it's not important let's just take it out.
It's really funny how these things suddenly change if you challenge them. Stuff that's "just a formality" suddenly becomes super important if you try to remove it. Stuff that's "standard and cannot be changed" is suddenly completely negotiable if you tell them you'll walk if it's not changed.
I've never had anybody who rented me an apartment or sold me car insurance try to tell me that their agreement was "standard." I mean, I'm sure the insurance stuff at least is literally standard, in the sense that they have a single document they give to everybody. But I've never had anyone use the word "standard" in any context except a stupid contract that they wanted to scare me away from negotiating.
I have no illusions about being able to negotiate a contract I get from Geico. But I also won't sign it unless I actually agree with the whole thing. Call it "standard," fine. But don't say it's "standard" therefore it's OK if there are parts you don't like.
And I don't care how common it is, a contract that says the company by default owns everything you've ever done except for things you've explicitly listed is oppressive. What if you just forgot about something important when you make the list? A clause that says things you make on company time are owned by the company is somewhat sensible (although my understanding is that it's unnecessary, as that's already the law). Say you have to tell them everything you've ever made, and they by default claim anything you didn't explicitly list, is nuts.
You can strike clauses and file an amended agreement, they can refuse to accept such things; but you are not obligated to sign unless they are compensating you adequately for what you are giving up. Approach this as an equal; decide what _you_ are willing to put up with. Nobody on this forum can tell you what you can and cannot live with.
Do figure out your BATNA at this time.
So, if you are asked to sign one of these things either ask for some cash up front or hold in your back pocket that it's probably not enforceable (though it can certainly end in litigation which can be terrible for everyone involved).
In the US, at least in general, this is a contract, and without the employee getting "consideration" it's not valid. And mere continued employment doesn't count, they'd have to give you something extra such as a raise or bonus.
LegalShield (https://www.legalshield.com/) is effectively a multi-level marketing scheme, but the product is actually sound. It has helped a couple of friends of mine with both contract and criminal defense issues.
LegalShield is also very useful if you happen to suffer from "driving while brown/black" as they can be called 24/7.
I struck two clauses in my catch-all generic contract when I signed on here: no installing software on my own machine; and no installing free software. As a sysadmin hired to admin linux, these had to be struck or I couldn't do my job :)
There is a side of the industry that most high paid developers don't see. Maybe they would just chock that up to lack of skills? I make double that now and average over 40 hours still. Plus travel, living out of hotels, and losing money on food while traveling. I still think I'm better off in Ohio at my current rate than in the valley at 50% more.
Overall IT is a good career even though it can be high stress. Most of the time that stress is unnecessary or even manufactured by managers/organizations. I really think the exempt employee is exploited in tech in general. There is no reason a help desk employee should be considered exempt. They should be paid by the hour with overtime. That and non-compete agreements are one reason I would even entertain the idea of a union. When a non-compete basically says you can't work anywhere then something is wrong.
Full disclosure: most of my family are union construction workers so that could sway my opinion. They have better compensation than I do, especially if you break it down by actually hours working. I'm in tech, in the fastest growing group, at one of the largest tech companies in the world.
Fish and Richardson, the law firm, says "Employees: Non compete agreements - don't sign them.[1]
It's often effective to take the contract, cross out and initial sections you and your lawyer consider overreaching, sign that, and turn it in. Then the company has to argue with you paragraph by paragraph, tying up their legal counsel, if they really want those terms. Also, there are special legal provisions about requiring a new employment contract from existing employees.
I went through this years ago with a very big company, refused certain clauses, and after some huffing and puffing, they gave in. This was important, because I did work for a startup on the side and got stock.
[1] http://www.fr.com/files/Uploads/Documents/Dos-and-Don%27ts-o...
If you are serious, talk to your lawyer. Don't guess or negotiate randomly. In some states this boilerplate language is meaningless, in others not so much.
You could be a critical part of the acquisition, in which they bend. Or you could be a part of the product that was going to be redundant anyways and they will be glad of the excuse to let you go.
I've never heard of it causing a problem, but I've definitely heard of it not working.
Basically one of the parties has provided a written record of their version of events, if you don't agree with it, you need to speak up.
In the end they've told you the contract they want you to work under, they have provided you with a copy and you seem to be happy to carry on working and taking their money. If you have a problem, why didn't you speak up? So it's implicit that you accept the new contract.
Perhaps it's not the law in your country, but it's definitely not insane if you're in a grey area and in this instance the law sides with the written contract, not the avoidance strategy.
You guys are all wrong. There is no blanket automatic acceptance of contracts if you ignore them in the UK.
There IS automatic acceptance of updates to previously signed contracts, ONLY if the original signed contract contains "terms permitting the employer to make changes from time to time" without your permission.
That is completely different than automatic acceptance of all contracts that are left unsigned and ignored.
https://worksmart.org.uk/work-rights/pay-and-contracts/contr...
In the same way as continued use of a website can constitute acceptance of terms of use, showing up for a job having been provided with a contract, but having not signed it, can also constitute acceptance of that contract.
If you don't like contract terms, firstly don't sign up to them but secondly don't start working at a place as if you had signed up to them.
It would be difficult to argue the contract wasn't binding if you had acted in compliance with certain of its terms. The more specific those terms you are complying with, the less likely you would be able to claim you weren't bound by the whole contract.
For example if the contract states you have to travel to a particular location once a week, and you comply with that obligation, you would be less likely to argue you weren't bound by the whole contract.
It's a fact.
> However, if you put up with the change without > protesting, there is a good chance that you will > be viewed as having implicitly accepted the change, > losing your right to object to it.
I'd be surprised if the US hasn't inherited implied contracts via common law.
It's not automatic that a contract is implied, but a contract COULD be implied by action and conduct.
Specific examples where the unsigned contract has been upheld in court: http://www.jordanssolicitors.co.uk/resource/warning-unsigned... http://www.citation.co.uk/news/is-an-unsigned-contract-enfor...
Not in this case being discussed (procrastination in signing). The company doesn't have a written record of their version of events, namely a copy of the contract with your signature.
Employers bent on evil normally give you around 3 months then 'restructure' the company (i.e. give you a new job title) as a mechanism to say it is a new job and not covered. They still need to wait 90 days before they can enforce that and you have the option to reject it (but get your CV updated in the meantime because you're leaving).
Employment law varies enormously from state to state, country to country etc. People in the US used to At Will will have no concept of what it is like to be With Cause (and vice-versa).
However, even With Cause employers can get rid of anyone they want. In the UK it's classed as a 'right to manage your business' and the worst downside is a small compensation payment which rarely exceeds a few thousand pounds (occasionally there are large payouts for the most egregious things, especially racist or sexist bullying). In the US, payouts could be larger but for many businesses they just see that as part of the exit package and budget accordingly. Always remember, in a business, no-one cares about you and these people are not your friends.
Having been through it multiple times, my advice is always have your CV up to date and if you don't like the look or smell of the situation, it's time to leave. You will feel much better and less stressed if you feel in control of your destiny and not being played by some Evil Overlord who doesn't give a damn about you.
[1] https://en.wikipedia.org/wiki/TUPE
My experience is similar - if you can't reach agreement with your employer, you should already be looking at other options.
That's a nice theory, but in practice we also have lawyers who specialise in dealing with M&A situations and minimising the impact of TUPE. I've been in a situation that looks like a textbook example of what TUPE was intended to cover, yet one of the first things the acquiring company's lawyers did was seek to limit its effects, apparently quite successfully.
As you pointed out, any protection you get under TUPE tends to be for only a relatively short period anyway. It might be enough to stop you getting completely screwed over on the day the acquisition goes through, but ultimately if the new employer or their management team are not the same kind of people you used to work with, you're probably still better off getting out early.
Incidentally, this is also a good argument for not signing a dubious contract even if you know and trust the current employer and management team. In the event of a change in control of the business, the incoming leadership get to keep the same terms by default; that is considered reasonable since you already worked under them before. So just because a nice employer doesn't exploit some contractual advantage today, you should never assume the new face of that employer won't do so tomorrow.
Bottom line: If you aren't happy with a contract, either explicitly challenge it immediately or don't start to perform your actions under it until the matter has been resolved.
Of does 'unable to produce' translate to 'unwilling to produce'?
If you disagree with sections you are to strike them out and initial them, additions or changes are appended to the bottom. This helps everybody know what's happening.
From reading the article it sounds like he didn't create his own agreement (for them to sign) but copied and then altered their agreement. If it contained their letter head and the terms as if they had written it not him, then it's clearly an attempt to trick the other party.
Is there a reason why one should quit instead of negotiating the contract while also letting them know you are offended by their initial offer? (Of course, if my current employer pushed something like that on me, I would be starting to look around.)
If anything, quitting is likely worse than being let go because you likely have less of a claim with regards to unemployment (a lawyer would need to specify the actual details).
If someone can't have a conversation about an employment contract any more politely than "no verbal response" I have to wonder how they ever get hired in the first place.
The "must disclose any existing inventions or ideas to the company now and that anything not enumerated belongs to them" is what does it. Almost none of my offers have ever included such a line. Any company trying to push that does not deserve a respectful response.
I can have a conversation about the contract. But when the contract includes that, it is like being given a serious minimum wage offer.
And I don't see this as "fly under the radar" at all. They should look at the contract they get back from you, just as you should look at the contract from them. If they don't even notice that you crossed stuff out, that's hardly your fault.
Regardless, the employer almost certainly has a very high caliber legal team, and you? do you even have a lawyer? You think that you're going to get the better end of the argument in court based on an extremely tenuous thread? That's not the smart way to bet, you're more likely to get your ass handed to you. If you want to modify your employment contract you need to be upfront about it.
I'm curious as to how this would play out in court, though. They say you agreed to such-and-such in the contract. Asked to produce the original contract, they pull out a copy with your signature and the relevant clause crossed out and initialed by you. Is the court really going to say, "Well you didn't initial it, so even though you clearly saw this change and accepted the signed contract and said nothing about it over the X years that Bob worked for you, we'll say that it's still in force"?
I'd also like to know why "they still started their employment" would be considered to be implicitly agreeing to the employer's version of the contract, while "they still paid their employee" would not be considered to be implicitly agreeing to the employee's version of the contract.
I can see how you'd get in trouble with the tactic of just taking the contract and then ignoring it. But you get a contract, you counter, everybody shakes hands, you're on the payroll and somehow that implies that you agreed to theirs, and not vice versa? How could that possibly be?
ianal, but fwiw here's an interesting tidbit I've picked up from lawyers in the past, when in a similar situation: they don't necessarily think of it as "we will own your IP." Instead it's "we will CLAIM to own your IP." The point being that it's not some absolute uncontestable ownership. You're always free to claim ownership yourself, despite anything stated in writing.
Anyway, I thought it was interesting because my non-lawyer brain thinks in terms of things I own and don't own, end of story. But the legal department thinks in terms of arguing ownership and resolving disputes in front of a judge.
In many cases the C-level employees of the old company have bonuses tied up in retaining a certain fraction of the original employee team for the term of their incentive package, and they lose out on part of their payout if they don't.
Not to say your bosses are going to steer you wrong, but it's very likely that it's now a conflict of interests for them to weigh in.
The real question is how much do you need this job? What is the state of mind of your co-workers about this subject?
Good luck!
As my mate Patrick who is a senior Industrial relations specialist and a lawyer said you don't want the guy that did the papers for buying your house advising you.
It's a different matter for an asset acquisition but generally, if you're performing the same role, in certain jurisdictions your existing contract terms have to be respected (this is the case in Europe at least, I would assume that in the US, the position is more flexible though).
You'd like to think your new employer is reasonable and would at least consider feedback/amendments from you in the first instance. At worst they can reject the proposed amendments and then you will have to decide to accept or look elsewhere, but at least you would have given it a go.
Contracts obviously seek to impose clarity on a relationship and so I have some sympathy with a company attempting to create a completely black and white position (if it's not carved out, it's ours). If you are concerned about this approach and want more flexibility then you could revise so any work in your private time unrelated to anything work-related is yours. This comes with its own pitfalls in some ways - it's difficult to nail down with clarity where the dividing line is, which in part explains the company's desire for a black and white approach.
In terms of ownership of previous IP, it would depend on the wording of the agreement, they might just be looking for an assignment of future IP developed whilst working for them, or they might want an assignment of past IP not expressly referenced in the agreement. The latter would be rather draconian but that's not to say the company wouldn't request it!
I'd be glad to give a read of the contract on an informal basis, if you want.
These kind of details are exactly why you should hire a labour lawyer. Also, your 100% that if it is a share purchase (even if only a majority stake) that the old contract is simply still valid.
Acquisitions of any kind don't magically invalidate all the contracts the company has entered in over its lifespan.
That's the case in the EU with the Acquired Rights Directive (and national implementations) which covers transfers of businesses/undertakings. Employees will automatically transfer, provided that in certain cases employer can update terms and conditions/make redundancies where justified (so called ‘economic, technical or organisational reasons’).