Issues with a Current Contract at Work

Hi Dear Members,

I am in a bit of a situation and i am unable to make up mind about what steps to take about a current job offer /contract i would appreciate your feedback.

My name is Max,i have been offered a contract with a company i have been working with for the last 5 years to stay on with a 10% pay hike,they want to sign me up for the next 12 months + a 6 month notice period (I have to work weekends in that notice period as i will be in uni full time finishing my post grad).

My concern is i have already locked myself with this company for the last 5 years without getting an opportunity to work somewhere else/or learn from seniors and now that my current 5 year contract is expired the company wants me to stay but they want me to stay for 12 months and not be able to do any other work anywhere else in that period,although the pay rise of a good 20+k a year it still bothers me that i will not be able to move on if a better opportunity comes up in the next 12 months and i will also have to commit work on weekends here after the 12 month period for another 6 months.

Another concern i have is if i sign up and then in few months they decide they want to have another Physio sharing my job(i work as a Physio in a medical center)that cuts my pay down by half which is a big risk,i don't see that happening but if it does it affects my pay badly and my ability to focus on my studies/family.

I have applied for other jobs and have had some very good offers but not from clinics where i have to continue to practice to successfully finish my post grad.

I have asked them to do the following for me:
1)give me permission to work outside
2)give me a 1 month notice option to leave

They have agreed on point one but haven't replied to point 2 at all ,i have sent then 2 emails and called them but no reply.

What would you do if you were in my position would you take the job up or would you just continue month by month(without the pay hike ) and move on as soon as something better comes up.

Thanks and Regards

Max

Comments

  • +19

    So you're making $220k a year and you think you're in a bit of a situation?

    If you want to leave without the 6 month notice period, how are they going to force you to stay anyway?

    Why not just take the job and if things change significantly, i.e. another Physio starts, you've got a pretty good reason to leave/

  • Thanks for your reply .
    Sorry i meant 20k+ overall in the package,don't earn no way near 220k.

    I am not sure how they will force me which is why i was worried,its a big company and well known for taking practitioners to court and suing them.

    The issue is if i sign up then i am locked for 12 month i will have to stay if a new PT starts or not,and if i leave they sue me.

    Thanks

    • +1

      1* health?!

    • +9

      20k - 10% hike comes to 220k package

      • mate i know,but i can assure you i am not on 220 but 20 k increase is definitely on.thanks

        • +16

          Easy does it. He's a physio, not a mathematician. ;)

        • +1

          @TheBird: mate with that kind of pay i'd give up my job right now and start learning PT or do a PT course.

          220k! am almost 42 and nowhere close to that .. which is why I am on ozbargain everyday!

          You sir, are doing awesome in terms of finance and making right choices!

    • +4

      You are never locked into a contract. Even if it's a contract position you can give them notice, or they can give you notice and leave earlier than stated. I suggest you have a good read of the termination section of your contract.

  • +1

    Sign up with your industry union, and they can negotiate contacts etc.

  • We don't have a union unfortunately.

    • +4

      Yes, you do.

      All workers in Australia have an eligible union to join.

      • i mean a Physio specific union(thats my understanding)and as eglathangion said its a personal contract i can say no ,they are not forcing me to join them yet.

        • +3

          Replying below with more info. Part of what unions do is provide industrial advice. I've seen all sorts of employers offer all sorts of contracts.

        • @MercSal: ok so the contract is like this whatever the clinic makes i get 50% of that up from 40.
          I am not allowed to work /provide service anywhere else in the country not even in my own time.
          I have to provide them 40 hours a week,its on ABN so i can no holiday,super and all the other benefits so if i dont work i dont get paid.
          I can sign for 12 months tommorow and they might find a physio which may cost them less and hire him effectively reducing my billings by 50% reducing my take home pay.
          12 months lock in till Jan next year.
          and then 6 months of weekend work while i am in uni provided i give notice at the end of 12 month period with no guarantee i will have enough patients on weekends,on top of all that i will be in uni full time from feb-june next year so 5 weekdays in uni,do weekends at clinic where i may or maynot see patients .

        • +3

          @max19832002: Ah, then you are not an employee. You are a sole trader being contracted to provide a service. Any contract would be legal. You need to make a business decision, or negotiate a better contract. A union may be able to provide a clearer comparison of what you might get as a direct employee elsewhere, but probably not much more.

        • @MercSal: yeah sorry should have mentioned that,my apologies .
          the issue is i am deaing with 2 guys.
          No1 guy is the Physio national manager-who i feel is jealous that i got offered 50% as no one has had it till date.
          no 2 guy is company recruitment head-no 1 guy gave me his number in the first place to negotiate and he was very genuine and said how much you want i said 50 and he said done,but its very hard to get to no 2 guy and i dont want to keep emailing him and upsetting him.
          no 1 guy is who i have called today/texted this afternoon but have had no reply.
          what do you recommend??

        • +1

          @max19832002: If I were you, I would simply not sign the contract and stay on month to month if that's an option and then look for options elsewhere.

        • @newozbargainermelb: Thats what i am doing right now mate,just every day i stay here i am on the old pay which i feel is unfair so am trying to speed up the process.So that they can say a yes or no and i can move on with my life.

        • +1

          If I were you, I'd negotiate for first right of refusal of all physio work that comes through that office to sign that contract and/or minimum payments.

        • +2

          @max19832002: If they now agreed to let you work outside as well where is your problem? New physio starts, get extra job somewhere else.

          I wouldn't sign any contract that restricts me from working somewhere else, especially if I am a sole trador, what the heck!

        • @BestofOZB: lthey haven't yet its all verbal,and i would stil have to provide 40 hours a week service to this company ,with my uni on one side i am not left with much time to work elsewhere maybe a day if i am lucky.

        • +1

          @max19832002: 40hrs even if there are no patients to see?
          They seem very hard to deal with, If I were you I would stay on month to month and keep looking elsewhere but don't resign until you 100% secure another job. Don't upset them either because you will need a good reference.

          Good luck.

        • +2

          @MercSal:
          Although you provide ABN, you are still a common law employee based on the information you provided. That means the clinic need to pay super for you.

        • +1

          @gstfree: Mmm could be. I could see them structuring it as a formal service provision. @max19832002 it is probably worth looking into sham contracting.

  • +1

    Physios can and do join United Voice or the Health Services Union.
    That said, a Union can't take an issue with a contract if there is nothing unfair or illegal in it. Contracts are merely written agreements.

    Always discuss your concerns openly and remember there will always need to be some value in the contract for your employer - you are looking for flexibility and rewards, your employer is looking for stability and productivity.

    The Union I work for routinely checks contracts and provides general advice to members. New members may have a qualifying period but once again, the Union I work for makes allowances for those entering the industry for the first time as these people often need extra support.

    • I was of the opinion that there is no body for medical/allied health on professional matters ,and as i said their is no dispute currently so am not sure why would i go to a union?
      I have discussed my concerns with this company very openly and told them that i need those 2 points in my contract as stated above.
      the other point is if i do leave and then they cant find someone to join they loose a lot of money each day i am gone.

      • +2

        You would be incorrect. I'd guess the HSU is the standard for your industry. Despite the actions of a (widely reported) few, they are pretty solid and provide a good service for their members.

        A union isnt just for problems, they are there to help you make your workplace better. A 6 month notice period is absurd. How much notice would they give you? I could see a 6 month non-compete, but without seeing the contract, or having a working knowledge of the industry I couldn't really say more. Someone at the appropriate union would be able to provide more specific advice, and probably some similar sample contracts.

        • +1

          I've looked into the award (my best guess anyway) and i can't see you needing to provide more than the standard 4 weeks. Given you seem to be getting some (dubious) advice from lawyers (are they industrial or employment lawyers), i'd still advise talking to a union.

        • @MercSal: so you think i should just sign and give them notice for 4 weeka after the 12 months?they cant chase me for any losses after that?
          Only other concern would be if the company decides to hire another PT and stuff me financially.

        • +1

          @max19832002:
          Def not. You won't be covered by the award if the situation is as you have described above. It's not an employment question, rather a service provision. Out of my area of expertise, unfortunately.

  • +2

    if 10% = 20k, your loaded.. id work 7 days a week for that

    • -1

      I know man,but not much to show except for a house deposit after 5 years of hard work for this company and now when time comes for me to get a raise they start with placing restrictions on my ability to leave.

        • ok maybe i should ask how can i negotiste it a bit better.

        • @Cheap Charlie: sorry mate may be i am too ambitious..

  • +1

    if you need the money, stay. otherwise move along so at that another graduate can get some cake.

    • i need the money,as i am also studying right now and trust me i have applied for multiple jobs but not much luck.

      • +1

        Aha, then be careful leaving!

  • +1

    a 6 month notice period

    Honestly, is anybody gullible enough to believe that condition is either legal or enforceable??? :/

    • +2

      there is a huge debate on this but lawyers i have spoken to have said i could be financially liable for a loss to the company.

      • +2

        They're shit lawyers then, clueless in point of fact. As an employee your rights are protected by legislation, one of those rights is that you are not effectively forced into indentured servitude with unreasonable notice periods…You would be far better off speaking to the Fair Work Ombudsman in this case: https://www.fairwork.gov.au/ending-employment/notice-and-fin…

        • +1

          mate its a Subcontract agreement,no employee/employer relation here.

        • -2

          @max19832002: Incorrect; however, you've been given all the help you need, it's up to you as to whether you're smart enough to accept it.

        • +1

          @StewBalls: Thanks,much appreciated.

        • +2

          @max19832002:

          OP Stewballs is giving incorrect info. You're a contractor not an employee. Technically even if you were an employee you can be signed up to 6 months notice which are rarely but in some cases enforceable. Fairwork Act only covers minimum entitlements but places no cap on a maximum term and as such, the Fair Work Ombudsman would not take part in something like this as it is outside their scope. You'll need to refer to case law for this.

          Just generally as a starting point:

          Reasons why restraint of trade / long notice periods may not be enforceable is that it would be difficult for a court to monitor. One of such cases which discusses this is De Francesco v Barnum (1889). Theory goes if they force you to stay but you don't perform or stop turning up, every time a court would need to penalize you for contempt, which clog the court system. And in no way would a court appoint a court officer to monitor you day to day. Fry LJ in that case observed that courts ‘are bound to be jealous, lest they should turn contracts of service into contracts of slavery’.

          However while they may not be able to force you to perform (since they can just find another replacement physio), the lawyers OP consulted are probably right, the company can take this to court and seek remedies if you break whatever agreement you signed. They could possibly sue you for the losses incurred as a result of the breach under contract or to find a replacement physio for your clients and ask a court to compel you to pay. Furthermore sounds like you have a restraint of trade clause in your contract which means the company can possibly seek an injunction from a court and stop you practicing as a physio for a certain amount of time. (Good Summary)

          OP, your better option is to actually get a solicitor help you negotiate a better deal with the reps rather than to ask info on a forum. You need to find where you stand between money vs dedication to this business.

        • +1

          Totally legal, way beyond the scope of Fair Work Act and the Ombudsman as OP is neither an employee (and therefore is not covered under NES) nor are the employers in breach of the National Employment Standards.

        • +1

          @Serapis:
          6 months is a bit too long notice period. So negotiate one month notice period.

          If the boss rejects and you can find another clinic to work. If you are not confident to find another job, you are not in a position to negotiate.

          If you are in the middle of the contract and you want to quit, you can find excuses such as EHS.

          Also, reasonable person would think 6 months notice period is too long. I doubt this is enforceable. Also the clinic must have solid evidence they suffered financial loss. Again, this financial loss is practically very difficult to prove.

        • +1

          @Serapis:
          OP may be a common law employee. This means the clinic need to pay super guarantee, payroll tax to sro/osr, workcover. The clinic also has PAYG obligations.
          Accountants pls correct me if I am wrong.

    • +2

      The military asks for 6 months notice to discharge (or at least it did when I was in) and that applied to hundreds of thousands of people across the decades.

      • yes but you were guaranteed your pay in that period i am guessing.

  • +2

    Base your decisions on what you and your family say, need and want, look at your last 5 yrs with this employer, have they respected you, treated you as a valuable asset or just a dogsbody to fill in the numbers, have you been head hunted by other clinics WITHOUT you throwing resumes out there?

    All these great job offers you mention that have restrictions on xyz, are they really any different to the restrictions this company is trying to apply? (while differing, they still are restrictive)

    Weigh it up, then refuse to sign any contract that doesn't include a standard 4 weeks notice either way. If the main stumbling block is the fear of them hiring more physio staff and cutting your potential earnings out, negotiate a nil hire of more physios in exchange for their 6 mth notice? based on a 12 mth further contract.

    To Be clear:

    Block any attempt to hire another Physio while you are under contract by agreeing to the non std 6 mth term of notice in exchange for you becoming the sole practicing physio at that clinic for the duration of the contract, Work there over the 12 mth contract, while attending uni etc then 6 mths into the contract give your 6 mths notice; Hoping that 12 mths from now coincides with completion of your studies and the freedom to work elsewhere

    • Thats excellent advise Shannon ,thank you so much.
      i have rejected two offers which were in a different field of Physio(i am doing sports and musculo in uni so more private practise)those roles were more managerial with minimal hands on which is good if i want to sit back and do a 9-5 job and come home.
      I enjoy doing what i do ao want to continue doing clinic work.
      For private /sports i have applied at 3 places but have't had a reply had a call from someone in melbourne about a job opening today(i live in brisbane)nt sure if i want to move but i said i will give the interview just to see what pans out.
      Yes my only concern is financial security i dont want myself locked and not being able to get out if the company decides to hire another PT effectively reducing my pay.
      I will do as you say and correct me if i am wrong-sign for 12 months provided they dont hire anyone else and then give 6 month notice to work weekends only )and finish uni by june mext year and run.

      • +2

        Rather than not hiring another Physio maybe you could negotiate minimum payable hours at your set rate for the 12 months. That way they can hire anyone they like but you get paid for your hours either way.

        • ok i will try this option as well today,hopefully they reply to my calls ,it feels demeaning if the other person acts like thos,i moght give them a notice and leave if they continue with the hogh headed attitude.

      • +1

        OP Posted

        "I will do as you say and correct me if i am wrong-sign for 12 months provided they don't hire anyone else and then give 6 month notice to work weekends only )and finish uni by june next year and run."

        Basically Yes. But you do need to have all this written into your contract, accept no verbal affirmations. Also those 3 places you have applied for; send them a final email stating you are only available for another two weeks (for interviews etc.) as you have some offers you will be deciding upon on [insert date here]. Hopefully that will push them to contact you.

        Living in Qld myself I can't see anyone wanting to move to Melbourne, however if you can transfer uni studies and THEY pay all moving costs as well as locate house and pay 3 mths rent on house (those are must have conditions you put to them)it may be worthwhile,
        I feel you have the skills, the work ethic and motivation to make it big in your chosen field; so sell yourself big, don't be shy or feel you can't ask huge conditions, in the end the current company will bend over to keep a known professional that knows clients staff & procedures

        Great to hear your Family are the most important consideration in whatever you do.
        Let us know the final results
        Blessings Shannon

        • Thank you so muvh for your kind words Shannon.
          Yes i am already in talks with a few regarding new roles.the physio manager hasn't bothered to reply to my email which i sent last thursday ,or text/call yesterday i am sure he knows i am waiting for an answer.I will make a move as soon as i get something concrete.Bo point in bluffing if i dont have a backdoor option.
          Thanks again.

        • +1

          Wondering what's the logic for nil hire? Technically 12 months is a long time especially if it's pretty much going to hamstring the clinic's ability to expand… a lot of businesses would be quite hesitant to do this as OP's job is only somewhat specialized (although depending on how badly they want to keep OP on specifically.)

      • update have got 3 interviews next week.

  • +2

    Why not add some clauses to the contract that give you (the sub contractor) the ability to terminate the contract on 14 days notice if there is not a sufficient amount of work (quantified in hours perhaps)?

    This will protect you against a) there not being enough work b) the company adding additional employees which means that you do not get enough work (loops back to point a)

    I think this would be a reasonable clause to add and would give you comfort to sign a contract while still having an "out" if you are not making enough $$

    • +1

      Sorry just realised people have already offered similar advice 😋

    • tried this on but no go.

      • +1

        Then don't sign..

        • I haven't,but i am looking at negotiating or getting out,not get stuck or for them to think that i am dependent on this job.

  • +1

    Have you told them it's a deal breaker? Are you prepared to walk away?

    • haven't yet,will wait for him to reply to my email or text this week of he doesn't i will walk away (i am actively looking and applying almost daily so hopefully do get something soon).
      Thanks

  • Called (physio manager )again but no answer.

    Please see this email(below) i am going to be sending to the national manager and give me suggestions if you feel it needs correction in language or in grammar or material or if its not the right way.

    Dear

    Hope you have had a wonderful start to 2016.

    I am emailing to just ask you about an option to exit or an option of no hire of physio's included in my contract(or you can give me a written letter on official letterhead no need to change anything in contract) i have been trying to talk to ———- since last Thursday through emails but have had no response,i have also called him twice now but again had no answer.

    I spoke to you over the phone late last year about this and although you agreed you will not look at hiring Physio's  for ——— unless someone with an existing caseload in the region turns up i just need that in writing.

    I am willing to write a letter and sign it to say i will continue to work with the company as i have no issues working here but i would like the option of  nil hire of more physio's at ———- in exchange for 6 month notice period which is in my contract(instead of a normal 1 month notice option), based on a 12 month contract starting December 2015.

    if this is not acceptable i would like a one month notice option included in my contract instead of 6 months.

    I am hoping this will sort all the issues(i will continue to work until my university starts next year and not look elsewhere but i need assurance from the company that i will be looked after).I hope this is not a great deal to ask.

    If this is not something which can be done i will actively start looking for alternate employment arrangements as i don't want to worry constantly about my future with my studies as well.

    I have been unable to focus due to this contract saga so please look into this and give me an answer ASAP so that i can focus on patients and improving business here at ——- clinic.

    With Kind Regards

    • +2

      Late at night here, just had a brief scan and think its written in a too passive voice, You are trying to get some answers while steering the negotiations totally your way. So need to start with your greeting then putting your contractual requirements next then relate the trouble getting any replies etc which then self generates a response from the higher person your emailing.

      Also its full of run on sentences and verbosity. Hold back a day and PM me I use to write quite good begging letters, cover letters, headliners, resumes and such for a living. so may have some ideas to assist
      Blessings Shannon

      • Thanks alot mate ,i will do that.

        • +3

          Max please PM me an email addy I can reach you at I've rewritten your letter and need to get it to you or set your PM to accept new conversations
          Night

        • +1

          @shannonn54: my mail ID is [email protected] you so much for doing this.

        • +3

          @max19832002: You can PM Shannon as requested rather than sharing your email id or creating a new one for this.
          Click on user name here in the OP -> Start a conversation.

        • @Gaggy: Thanks Gaggy.

        • @shannonn54: PM fone Shannon.

        • +1

          @max19832002: so I'm assuming you are born in 1983 and created that email address back in 2002 - hence 19832002. Hahaha just having fun

        • @WaterMark: so true,lol.

        • +2

          @WaterMark: or perhaps 1983, 20th Feb.

        • +2

          @Oz Bargain 3: that's actually more plausible :)

  • +1

    What sort of penalty is there if you break the agreement?

    • +1

      No idea,generally they sue people for the lossess,mainly doctors they have sued before and multiple times not just once.So i am a bit skeptical to sign anything which may get me in trouble later.

      • +1

        the contracts have to be "fair".. so what is the penalty that they'll receive if they terminate you early?

        If there's a guaranteed income, then it's not so bad… you probably could negotiate a different payy structure if your concern is having a second person come in and take half your "commissions/pay"..

        • +1

          Thats exactly what i am going to do mate.Thank you

        • +1

          @max19832002:

          Yeah, it's good to share your genuine concerns with them to see what they;re willing to do…
          It at least it puts the whole thing back on them and gives them the opportunity to keep you if they want to.

          Good luck with everything!

        • +1

          @bobbified: Thanks alot mate.

  • +1

    Try to get a job in the public system, NSW Health.

  • +1

    What's more important to you, your career freedom? Money? Experience? Mentoring? Flexibility?

    • with this job now its only money.

      • +2

        I'd suggest that you should hold off from signing and seeing if you can get a better remuneration package from an external employer. With this offer in hand you may consider a counter offer from your existing employer based off your service record and loyalty. Maybe indicate the opportunities for mentoring etc..

  • +1

    If you're only working for one employer, and even more so if you're not allowed to seek work elsewhere during your term of "employment", you're an employee. If you are an employee, you cannot be a sole trader. Everything you have stated, apart from your pay structure (commission) indicates that you are an employee.

    https://www.smallbusiness.wa.gov.au/business-topics/employin…

    The rules above apply nationally.

    If you or your company are found for sham contracting, heavy penalties apply.

    I have been on both sides of the rules (employer and contractor). I reported my arrangement but no action was taken. If my arrangement is ever audited, I have done my part and the liability is solely on my "employer".

    edited to relate to OP. Your contract is actually no legal and hence not worth the paper it is printed on. All non-compete clauses can be ignored.

    Further edit - Non-compete clauses have to take into consideration what is considered reasonable. Generally, a 3-5year period covering a 3-10km radius of your work location is considered reasonable.

  • +1

    I think there is one thing everyone is missing which was mentioned at the start but not reinstated, a condition to leave can only be applicable to an EMPLOYEE, you are not treated as an employee but as a contractor to the company, the notice to rescind the contract from a contractors prespective is 6 months which is okay legally but i dont think they can hire you on a contract as this is your sole place of work, legally they are required to offer you a letter of employment as an employee and not a contractor. There is a fine line between who is classified as an employee or a contractor, a sole trader working as a contractor has a right to subcontract the original contract and can hire employees to do the contractual job, a sole trader is also allowed to charge an invoice based service, also a contractor has to bring the tools of trade him self.

    I think the relationship here is clearly an employer employee relation and thus the contract holds no legal right in court of law, as a employee they cannot force 4 weeks standard leaving notice or 6-8 weeks if you have been a long term EMPLOYEE.

    Hope that helps

  • Just Emailed the top guy,hope for the best.
    Thanks Everyone.

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