That contract can enslave you
Mar 06, 2011
MATTHEW was over the moon. He had just clinched a juicy job as a senior communications manager in a top firm in town. He was excited and telling whoever cared to listen how he has at last landed a deal of a life time.
By Stella Nassuna
MATTHEW was over the moon. He had just clinched a juicy job as a senior communications manager in a top firm in town. He was excited and telling whoever cared to listen how he has at last landed a deal of a life time.
“They offered me an irresistable package! I did not hesitate to sign the contract. I will be starting work in a fortnight,†he told them.
“Besides the many benefits that come with the job, I will be pocketing a cool sh5m after taxes!†he said.
His benefits included free housing, a car, medicare and education for his children.
For the 29-year-old, the offer was anyone’s dream. However, three years down the road, Matthew got an even better opportunity, but his boss told him he could not leave the job because the employment contract he signed bound him to the company.
Matthew insisted that he had to leave.
He was told to pay the company damages of sh25m for quitting his job without giving a one-year notice as per contract.
He was also told that he was not supposed to join any of the firm’s competitors for at least four years after quitting. “What was the problem, and how did all this come about?†one would ask.
Matthew was mesmerised by the money and the job benefits he was offered and signed the contract without reading and internalising it.
In short, he ensnared himself.
Although many of us may accuse the company of using underhand methods to disadvantage its employees, Matthew carries much of the blame for signing a contract he did not understand, experts say.
“Most employees pay less attention to the restrictive convenants, especially the termination terms of contract, which is wrong,†says Veronica Nakityo, a lawyer in town.
She explains that if an employee does not understand the termination of contract clauses, they are bound to pay dearly. This is not only in damages, but even losing out on better opportunities.
These type of contracts are especially common where a firm offers education or training benefits, Nakityo explains.
“Usually, no one can tell when a better opportunity is coming.
To be on the safe side one should involve a lawyer before they sign, especially if they don’t understand the employment contract,†Nakityo notes.
She says the legal terms often used may be hard for the layman to understand, yet an in-depth explanation could be offered by the lawyer.
However, she also notes that the employee can lodge a complaint at the district labour office about the issue, especially in cases where a contract prohibits a worker from working with rival organisations.
If the labour office fails to handle the complaint, one can go to the industrial court.
“But the entire process is frustrating because the case may take long to be resolved,†Nakityo stresses, adding that the problem is exacerbated by the fact that there are no labour court in Uganda.
She also notes that employers should avoid using legal terms that cannot be easily understood by the lay people, or use detailed explanation where they must use them.
MATTHEW was over the moon. He had just clinched a juicy job as a senior communications manager in a top firm in town. He was excited and telling whoever cared to listen how he has at last landed a deal of a life time.
“They offered me an irresistable package! I did not hesitate to sign the contract. I will be starting work in a fortnight,†he told them.
“Besides the many benefits that come with the job, I will be pocketing a cool sh5m after taxes!†he said.
His benefits included free housing, a car, medicare and education for his children.
For the 29-year-old, the offer was anyone’s dream. However, three years down the road, Matthew got an even better opportunity, but his boss told him he could not leave the job because the employment contract he signed bound him to the company.
Matthew insisted that he had to leave.
He was told to pay the company damages of sh25m for quitting his job without giving a one-year notice as per contract.
He was also told that he was not supposed to join any of the firm’s competitors for at least four years after quitting. “What was the problem, and how did all this come about?†one would ask.
Matthew was mesmerised by the money and the job benefits he was offered and signed the contract without reading and internalising it.
In short, he ensnared himself.
Although many of us may accuse the company of using underhand methods to disadvantage its employees, Matthew carries much of the blame for signing a contract he did not understand, experts say.
“Most employees pay less attention to the restrictive convenants, especially the termination terms of contract, which is wrong,†says Veronica Nakityo, a lawyer in town.
She explains that if an employee does not understand the termination of contract clauses, they are bound to pay dearly. This is not only in damages, but even losing out on better opportunities.
These type of contracts are especially common where a firm offers education or training benefits, Nakityo explains.
“Usually, no one can tell when a better opportunity is coming.
To be on the safe side one should involve a lawyer before they sign, especially if they don’t understand the employment contract,†Nakityo notes.
She says the legal terms often used may be hard for the layman to understand, yet an in-depth explanation could be offered by the lawyer.
However, she also notes that the employee can lodge a complaint at the district labour office about the issue, especially in cases where a contract prohibits a worker from working with rival organisations.
If the labour office fails to handle the complaint, one can go to the industrial court.
“But the entire process is frustrating because the case may take long to be resolved,†Nakityo stresses, adding that the problem is exacerbated by the fact that there are no labour court in Uganda.
She also notes that employers should avoid using legal terms that cannot be easily understood by the lay people, or use detailed explanation where they must use them.