Recently, we received inquiries from two clients who said that due to certain reasons, they did not work for. the schools introduced by their agents. Now, the agents are demanding compensation equivalent to two months' salary from them.
My initial reaction was that the agents were intimidating them. However, upon reviewing the contract signed between the agents and the clients (let's refer to one client as David for now), as well as the document he received from the agent, I understood the situation.
David had signed a service agreement with the agent, which clearly stipulated that if the agent facilitated the signing of an employment contract between him and an employer, if he subsequently unilaterally terminated this contract or entered into another employment contract with another employer, he would be liable to pay the agent a penalty equal to twice his monthly salary.
The document sent by this agent to David was actually a complaint, in which it was clearly stated: the agent had spent considerable time and effort on behalf of David, successfully finding him a suitable employer and assisting in the execution of employment contract. However, David unilaterally broke the contract and refused to perform the employment contract with the employer. The agent believed that David's actions violated the terms of their service agreement; hence, they were seeking damages from him for breach of contract.
David asked, "Isn't it true under the labor contract law that I can terminate my contract by giving the employer 30 days' notice? There should be nothing wrong with my actions."
I explained to him that: there are two separate contracts involved. One is the employment contract you signed with your employer, under which, according to the labor contract law, you can terminate the contract after providing 30 days' notice to your employer.
The other is the service contract you signed with the agent, which specifies that if they assist you in signing an employment contract and you then unilaterally terminate it, you must pay them a penalty. This is because you haven't compensated them for the work they've already done. They anticipate being paid by the employer when job placement is successful. Since your unilateral termination of the contract has prevented them from receiving payment for their efforts, they are requesting the penalty from you.
In light of this, the agent's demand isn't necessarily unreasonable. Of course, if you find their demands unjustified, you have the option to refuse such a contract.
However, the issue here is that you didn't carefully check the contract before signing it…
To be honest, it seems that what I can do is limited, all I can do is to suggest that he attempt to settle with the agent.
So, the advice remains the same: When you sign any document, read it carefully. If you've signed a contract, honor the spirit of the contract and fulfill its obligations as agreed upon by both parties, in this way, you may keep yourself away from trouble.
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