Business Law - Employe Contract Agreement

Table of Contents

I) Executive Summary

II) Introduction

III) Description of Clauses

IV) Application of all Legal Principles covered in class

V) Recommendations and What should be Corrected

VI) Scenario: Termination

VII) Lessons Learned and Conclusion

VIII) References

IX) Employee Contract Attached

Executive Summary

This employment contract is an official contract between PROCOM Consultants Group Ltd. (Company) and a independent contractor who in this case is the consultant. Currently PROCOM has a Service Provider Agreement with client Allegis Group Services Canada Corporation (Client). When first examining this contract, the legal issues involved in the Terms of the Agreement cover the promises made by both the Company and the Consultant. These promises are legally binding and are enforceable in the court of law. This contract first outlines in the recitals, which are the preliminary parts of the contract and gives a background of the information that must be read before signing the agreement. The contract has thirty-two different clauses and contains a Schedule "A" and Schedule "B", that looks at the Client Provisions and an undertaking by service provider personnel. This paper will only examine the thirty-two clauses pertaining to the contract between PROCOM and the consultant.

This contract deals specifically with the liability of certain parties in the case of legal disputes, the termination of the employee contract for various reasons and the protection of company or client information and data. All clauses are described in the 'Description of Clauses' section of the paper, and all legal concepts and implications will be examined as a result of a dispute. All legal principles from class will then be applied to the contract, including topics such as knowledge of the law; contractual relationship and the legal risks involved in the creation of a contract and after the contract have come into effect.

The next section in this paper looks at a scenario where the consultant is up for termination. The grounds of termination are described in section 9 of the contract. This section looks at how the company would go about terminating the agreement and what package (if any?) is required to terminate the contract.

When reading over the contract, I found that the contract is very well constructed and covers both parties very well. Issues with the contract and the resulting corrections that should be made are presented. A few issues with the contract are that employees are not protected in the case of termination, and therefore have no job security and that down payments are not made to the consultant. This provides a problem if the Client Agreement is cancelled before the commencement of this agreement, as the consultant believes they are being employed for services to the client. This can cause problems for the consultant as they could be finding new projects or services to be spending their time on. I recommend that the consultant fully reads and understands the contract before agreeing. With Equal Bargaining Power, there is no reason the consultant cannot draft a clause that covers them in case of termination.

Finally concluding remarks are made about the Terms of Agreement and relationship between all three parties, including PROCOM, Allegis and the consultant. Also, I will look at what I have learned about this contract and employee contracts in general.

Introduction

This contract first starts with the creation of the Client Agreement between PROCOM Consultants Group and Allegis Group Services. PROCOM carries on the business consisting of providing services to its clients in the field of computer programming, system analysis and design, and providing general consultation services to persons, firms and corporations. PROCOM and the client have entered into a Service Provider Agreement, where the Company has agreed to provide professional, consulting and staffing services to Allegis. The contract attached is a consulting agreement and is a type of employee contract. The consultant is acting as an independent contractor for the Company, who is providing the Client with an agency. The start of the Term of Agreement for the consulting agreement was Monday, May 14, 2012 and the rate per hour for the consultant is $80.00 plus any and all applicable taxes. The consultant must also agree to the terms provided in Schedule "A" and Schedule "B" which is attached the contract. The recitals examine all the background information of the contract.

The first section of the employee contract agreement for PROCOM (Company) Consultants is a section of recitals. The recitals state that PROCOM has entered in an agreement that it must carry on it's regular day-to-day business consisting of providing services to its clients in the field of personal programming, system analysis and design, and providing information in the field of management consulting. The second part of the recital states that a Service Provider Agreement has been signed by PROCOM with Allegis Group Services Canada Corporation (Client). This is the Client Agreement where PROCOM has agreed to provide professional consulting and staffing services to Allegis. Provisions of the Client Agreement attached as "Schedule A" are applicable to services performed by the Consultants. The consultant must act in the interests of the company and must be provide consulting services in connection with the Business of the Company. The company and the consultant must both be desirous in providing their services and must both act in the best interests of the company. The consultant is an independent contractor who will be working for the company and will carry on business in the field of information technology for a variety of clients. This means that the consultant will be doing normal business for other clients during this agreement and is not legally bound just to Allegis. The consultant may use agents or other employees to perform work for the Business and the consultant must make statutory remissions on their behalf. The consultant must be well trained and must show that he or she has expertise in the business and must have been advising as an independent contractor for some time. The consultant needs to advise to the company