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ellethecat
Joined: 11 Apr 2004 Posts: 75 Location: edmonton
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Posted: Mon Jun 20, 2005 10:24 am Post subject: ...Wierd contract situation, contract law specialists? |
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Hey everyone. THanks for so much advice over the last little while. I have been offered a job at a great company and I want to take it. But there is a bit of a problem. I am a month and half away from completeing my contract and getting a large bonus. I cna easily finish my contract and then start my new job. However, my current emplyer wants 3 months notice of termination. So i cant do all three. I have yet to sign the new contract, so if you look at it one way, I will have completed my contract and am entitled to the bonus, and havent broken the new contract by not giving 3 months notice. On the other hand, I spoke to someone in the company who said its most like that they will try to withold the bonus if i dont give three months, even if i have finished the last contract.
IS there any legal recourse? I can give them 2 months, but if I give them two months and they withhold my bonus, i will not be happy. I can say nothing, wait until the bonus is paid out, but then i would have to leave them immediately, with no notice. They may then try to take it out of my pay.
I have alot of info on the company, including laws they are breaking, and I dont know if its worth trying to use that against them. Any ideas? |
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PAULH
Joined: 28 Jan 2003 Posts: 4672 Location: Western Japan
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Posted: Mon Jun 20, 2005 10:36 am Post subject: Re: ...Wierd contract situation, contract law specialists? |
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ellethecat wrote: |
Hey everyone. THanks for so much advice over the last little while. I have been offered a job at a great company and I want to take it. But there is a bit of a problem. I am a month and half away from completeing my contract and getting a large bonus. I cna easily finish my contract and then start my new job. However, my current emplyer wants 3 months notice of termination. So i cant do all three. I have yet to sign the new contract, so if you look at it one way, I will have completed my contract and am entitled to the bonus, and havent broken the new contract by not giving 3 months notice. On the other hand, I spoke to someone in the company who said its most like that they will try to withold the bonus if i dont give three months, even if i have finished the last contract.
IS there any legal recourse? I can give them 2 months, but if I give them two months and they withhold my bonus, i will not be happy. I can say nothing, wait until the bonus is paid out, but then i would have to leave them immediately, with no notice. They may then try to take it out of my pay.
I have alot of info on the company, including laws they are breaking, and I dont know if its worth trying to use that against them. Any ideas? |
Im not an expert on this, but I would expect it is unreasonable to withhold a bonus when you have completed the contract, and you are within your rights not to renew.
They did not say anything about needing to give you three months notice of your intention to not renew your contract which is ending anyway, which is not the same as handing in your resignation mid-contract and quitting. they know your contract is coming up for renewal, they know you may possibly not renew, but they have not said anything about needing to give any notice. You only need to tell them you are not renewing an expiring contract, which to my mind is not the same as quitting.
Give the notice, tell them you are not renewing and if they say they will withhold the bonus say that its in contravention of your agreement, as you finished your contract as required. You can tell them they didnt give you notice of their intention whether or not to rehire you a second time. If they give you stick, give them the union's phone number and tell them to expect a call and your bonus as promised. You have to play hardball with these SOBs.
By law you are supposed to give three months notice if that is what is stated on your contract. But you are not resigning, you are simply not renewing an expiring contract. BIG difference, here. |
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ellethecat
Joined: 11 Apr 2004 Posts: 75 Location: edmonton
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Posted: Mon Jun 20, 2005 11:08 am Post subject: |
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Yeah, thats the issue alright. I did sign a thing stating that I intended to renew, but Im pretty sure it was non binding. I did not resign. Hoever,they seem to treat a non renewal the same as quitting. Im not sure legally if they can do that, but since Id be leaving at the time when the bonus would be due for depositing, they might be crappy about it. If they tick me off, i will quit with no notice before their summerschool campaign, which will put them in a bad spot. I hate to be petty, but I hung in there and want my grand. |
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PAULH
Joined: 28 Jan 2003 Posts: 4672 Location: Western Japan
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Posted: Mon Jun 20, 2005 12:37 pm Post subject: |
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ellethecat wrote: |
Yeah, thats the issue alright. I did sign a thing stating that I intended to renew, but Im pretty sure it was non binding. I did not resign. Hoever,they seem to treat a non renewal the same as quitting. Im not sure legally if they can do that, but since Id be leaving at the time when the bonus would be due for depositing, they might be crappy about it. If they tick me off, i will quit with no notice before their summerschool campaign, which will put them in a bad spot. I hate to be petty, but I hung in there and want my grand. |
Dont worry about what they think might be the case. if its not written down and merely assumed then it has no legal standing. that is something that they will have to argue with the union if they want to pick a fight. You can not read minds and they can not assume you know what they are thinking. Call their bluff on it and dont just take their word for it. Its not in the contract that its the same as quitting. Thats what you think they think and that doesnt hold water in my opinion. Get it in writing or not at all. |
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Glenski

Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN
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Posted: Mon Jun 20, 2005 1:06 pm Post subject: |
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Quote: |
my current emplyer wants 3 months notice of termination. So i cant do all three. I have yet to sign the new contract, so if you look at it one way, I will have completed my contract and am entitled to the bonus, and havent broken the new contract by not giving 3 months notice. |
What exactly does your contract say about requirements for getting the bonus? |
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ellethecat
Joined: 11 Apr 2004 Posts: 75 Location: edmonton
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Posted: Mon Jun 20, 2005 2:31 pm Post subject: |
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SIgh. the administration handbook says:
Submission of a formal letter of resignation at least 3 months prior to your last contracted work day.
ill see if i cna find the actual contract.
ALAS, the contract also says:
the employee must notifiy the company in writin of hte termination of this agreement. |
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PAULH
Joined: 28 Jan 2003 Posts: 4672 Location: Western Japan
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Posted: Mon Jun 20, 2005 2:42 pm Post subject: |
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Question: I'm from Canada. I've been working for a Japanese company for more than a year. I find that the working conditions here are different from those stated in the contract, and I want to change my job. My contract specifies, however, that I should work for the company for at least three years.
Is it possible for me to quit?
Answer: To protect employees from having to work against their will, the Labor Standards Law (Rodo Kijun-ho) prohibits contracts of over one year, except those which require a definite period for the completion of a specific project, such as the construction of a building. Even if a contract-other than those of specified length-stipulates a required work period of over one year, it is valid for only one year. Thus, if you have a standard contract, you can quit any time, as you have been working for over a year. If you want to avoid to be in trouble with your employer, you should confirm the rules of employment (Shugyo Kisoku) of your company. When there are no rules of employment in your company, you only need to give your employer two weeks' notice of your intention to quit. You said your working conditions violate your contract. If this is true, you can leave the company immediately without giving notice. This is a right guaranteed by the Labor Standards Law.
(Period of Contract)
Article 14. Labor contracts, excluding those without a definite period, and excepting those providing that the period shall be the period necessary for completion of a specified project, shall not be concluded for a period longer than one year.
(Request for Cancellation)
Civil Law Article 627. (1)When the parties have concluded a contract without a specified period of employment, either party is entitled to request that the other party cancel the contract at any time. In this case, employment will be terminated two weeks after either party has requested cancellation of the contract by the other party. |
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PAULH
Joined: 28 Jan 2003 Posts: 4672 Location: Western Japan
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Posted: Mon Jun 20, 2005 2:44 pm Post subject: From the general union webpage |
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I want to quit my job. How much notice do I have to give?
This question is not covered under the Labour Standards Law but is based on precedents set in civil courts. It all depends on whether you have a limited or an unlimited term contract, and if you have a limited term contract what contract year you are in.
Unlimited Term Contract --- two weeks notice is sufficient.
First year of a one year contract --- you can quit at either the end of the contract or quit by following the procedures laid out in the contract for quitting. If you don't follow these rules your company has a theoretical claim against you but can only act on this by using civil court procedures.
Second year (plus) of a renewed one year contract --- two weeks notice is sufficient. |
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ellethecat
Joined: 11 Apr 2004 Posts: 75 Location: edmonton
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Posted: Mon Jun 20, 2005 4:34 pm Post subject: Re: From the general union webpage |
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PAULH wrote: |
I want to quit my job. How much notice do I have to give?
This question is not covered under the Labour Standards Law but is based on precedents set in civil courts. It all depends on whether you have a limited or an unlimited term contract, and if you have a limited term contract what contract year you are in.
Unlimited Term Contract --- two weeks notice is sufficient.
First year of a one year contract --- you can quit at either the end of the contract or quit by following the procedures laid out in the contract for quitting. If you don't follow these rules your company has a theoretical claim against you but can only act on this by using civil court procedures.
Second year (plus) of a renewed one year contract --- two weeks notice is sufficient. |
but surely then, i cant then expect my bonus.
The quote you used ws not from me, I vary a bit from hte example. I haent been working a full year. My full year comes due AUg 5. my contract date officially runs to August 23.
AND, my company specified in my contract that they need three months notice. These examples say you need to give 2 weeks, IF your company doesnt have special rules. But,...they do. |
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ionix-
Joined: 25 May 2005 Posts: 37 Location: Miyakonojo, Japan
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Posted: Mon Jun 20, 2005 5:42 pm Post subject: |
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not sure if I understand correctly but the 3 months notification is a rule on the present contract. The bonus is also written on the present contract. It is then assumed that if you don't break your contract, all clauses are valid. Let me explain: officialy your last day of work is when the contract ends. You don't need to give 3 months notice because they already know your last day of work from the contract. They cannot withold your bonus or your pay because you don't renew your contract. Not renewing a contract is not considered quitting a job. You can tell them you don't plan to renew the contract and it will not void any article of that present contract. You can also wait until they ask you to renew and decline. Both cases would not jeopardize your bonus or your salary. Do not get mixed up between finishing a contract early (Where they have right to not give bonus) and not renewing. |
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PAULH
Joined: 28 Jan 2003 Posts: 4672 Location: Western Japan
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Posted: Mon Jun 20, 2005 8:52 pm Post subject: Re: From the general union webpage |
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ellecat, the reason they ask for three months is that it gives them time to look for a replacement for you, and often it discourages people from quitting as they know a new employer will not hold a job open for three months while you serve out notice.
AS you employer knows your contract is ending they know when you are leaving and know that you may not work after that day. its not a bolt of the blue that they have to find someone. Chances are, they will have a replacement within a week of you leaving, but its often a psychological ploy to keep you off-balance. They have you where they want you by making you worry about it.
IMO your bonus is safe as you are not quitting on them as in a resignation. You are choosing not to extend an already completed contract. You have done your part. They must now do theirs. |
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guest of Japan

Joined: 28 Feb 2003 Posts: 1601 Location: Japan
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Posted: Mon Jun 20, 2005 9:36 pm Post subject: |
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Legally a completion contract bonus cannot be dependent on what happens after the completion of the contract. That doesn't mean that your employer will follow the law though. A company can write pretty much anything it wants in the contract, but they can only legally enforce those things which are legal.
It's quite possible that your employer will break the law an you will then have to take action. I have heard examples where the labor standards board has declined to interfere in such cases because the person has willfully signed the contract, however the contract does not supercede national law. In that situation it is more of a case of lazy beaurocrats.
My own company has a clause similar to yours and I am quite confident it would be enforced. That doesn't make it legal, but the company does have the upperhand in our situations since it controls the money distribution.
I'd recommend telling the company you decision not to renew as soon as possible, so that if it does eventually come to litigation then you can say that you provided the employer will plenty of notice to replace you. You should probably be a union member as well. |
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ellethecat
Joined: 11 Apr 2004 Posts: 75 Location: edmonton
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Posted: Tue Jun 21, 2005 4:03 am Post subject: |
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Thanks for everyones opinion. Ive sent a note to someone in HR telling them i can give two months notice of my intention not to renew, but that I want a written confirmation that I will receive my bonus for completing my contract. Otherwise, I will leave earlier. If Im not getting my bonus for staying my whole contract, I will not stay. However, its hard to say if they will see the logic that the two months is better than nothing. |
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ellethecat
Joined: 11 Apr 2004 Posts: 75 Location: edmonton
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Posted: Tue Jun 21, 2005 12:39 pm Post subject: |
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UPdate. I discussed my situation with them and they said MAYBE if I stayed the full two months, Id get the bonus. But certainly, I would feel ripped off iF I give them two months notice, finish the contract, but dont get the bonus because they want three months. Im thinking baout jumping ship sooner. |
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PAULH
Joined: 28 Jan 2003 Posts: 4672 Location: Western Japan
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Posted: Tue Jun 21, 2005 12:57 pm Post subject: |
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ellethecat wrote: |
UPdate. I discussed my situation with them and they said MAYBE if I stayed the full two months, Id get the bonus. But certainly, I would feel ripped off iF I give them two months notice, finish the contract, but dont get the bonus because they want three months. Im thinking baout jumping ship sooner. |
Did you ask if three months is necessary for quitting mid-contract or notice for not renewing a terminating contract. I get the feeling you are not seeing the wood for the trees here. 3 months may not be necessary unless you ask them and pin them down on it.
If you stay the two months and they dont pay you then legally speaking they are in breach of contract, but companies will find ways to wiggle out of their obligations all the time.
You have a new job and sponsor lined up and can work on the remainder of your visa until it expires. Lose your bonus perhaps but then you dont risk losing out on the other job too. It's your call, basically. |
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