work as an contractor 1

[HamidEle]

I signed a contract with one company as an indepedent contractor.One clause is, the contractor shall not solicit any of the company clients nor engage in any business which is similar or in competition with the company during the term of engagement with the company. Not quite sure this prevents me from working for another company as a contractor on part time basis. Do I need let the companhy I am working for now know I will be working for another company on part time basis.

 

[hokie66]

Don't know the answer to your question, but beware of the tax man. Depending on which country you are in (but most western countries will be similar), the tax people will consider that you are an employee.

 

[europipe]

When you are an independent contractor you can work for various companies, they must know that.
Why shouldn't you say that tactful when neccesary.
The last company I work for asked me to sign a doc what prevents me for working for the same clients as theirs.
I think that is okee.

Greetings

 

[HamidEle]

Enropipe,

In my case, they ask me not to engage in any business which is similar or in competition with the company during the term of engagement with the company. It seems to me, I am a full time employee. I am hesitating to consult them since they would be upset.

 

[europipe]

When you have another assignment you can always ask what
'any business which is similar or in competition' means?
And maybe you don't have to inform them when you think it's not applicable.

 

[IRstuff]

"I am a full time employee"

No, you simply signed an exclusivity contract. We do that with subcontracts where we don't want our competitors to enjoy the benefits of whatever our subcontract might have to offer.

The bottom line is that for a single person contract, you are a temporary "surge" employee, unless you are selling some form of IP to your client.

Based on your OP, I would say that you cannot work for any competitor in any capacity, period.

TTFN

FAQ731-376
Chinese prisoner wins Nobel Peace Prize

 

[MiketheEngineer]

Hate to beat a dead horse - but you are asking legal questions of a bunch of engineers.

Call a lawyer.

 

[europipe]

Dont worry, be happy

 

[berkshire]

Are you sending this company invoices and billing for services rendered, or are you showing up each day and doing the work they give you, and receiving a check at the end of the week or month.
If it is the former then your customer is restraining your trade and should pay extra for having you exclusively.
If it is the latter then you are a thinly veiled employee.
B.E.

The good engineer does not need to memorize every formula; he just needs to know where he can find them when he needs them. Old professor

 

[HamidEle]

I am sending my company invoices and billing them per hours I have worked although I show up every weekday as I am on this project.

 

[IRstuff]

The tell is "billing them per hours I have worked." This alone is enough to tell me that you have the same status as an employee.

TTFN

FAQ731-376
Chinese prisoner wins Nobel Peace Prize

 

[europipe]

And as an employee you can also do what you want after working hours.

 

[telecomguy]

IRstuff, not sure I'm understanding you correctly. Are you saying if I bid a job by the hour then I am a defacto employee?
<tg>

 

[IRstuff]

It still depends on the job, whether you are given specific day-to-day tasks, whether you have written statement of work upon which you based your bid.

Anything that smacks of time and materials will sound like a temporary employee.

In any case, this is all quite moot, since you've obviously signed a non-compete contract. I don't see why there is any confusion or ambiguity with that.

TTFN

FAQ731-376
Chinese prisoner wins Nobel Peace Prize

 

[telecomguy]

I agree. But non-competes are still ambiguous. When you do work for a large company that has their fingers into many things, it's hard to do anything that is not competition in one form or another. I have taken jobs within the same industry but with different focuses that could actually be argued as augmenting/enabling products and services rather than competition. But that doesn't mean the employer couldn't pull the plug on a contract if they didn't like it. And I presume they could bring civil charges if they felt their business was legitimately harmed.
<tg>

 

[IRstuff]

Contracts are negotiable, and in such cases, one would think that it's in one's interest to limit the scope of the non-compete to just the local entity to which the contract is tied.

TTFN

FAQ731-376
Chinese prisoner wins Nobel Peace Prize

 

[HamidEle]

What woould be the worst case? Would they sue me to the court or terminate the contract because I was working for some other company, which might be in competition with their main line buseness. I will not solicit any of their clients of course.

 

[berkshire]

It would depend entirely on the circumstances.
I had a case many years ago where I was doing work for a company and work for one of their competitors.
The company offered to pay me extra money if I stopped working for their competitor. I agreed to do that, it was restraint of trade with a carrot instead of a stick.
B.E.

The good engineer does not need to memorize every formula; he just needs to know where he can find them when he needs them. Old professor

 

[IRstuff]

" Would they sue me to the court or terminate the contract "

I don't see why they wouldn't, do you? The question is how much of your future earnings and professional status are you willing to risk to violate your contract

TTFN

FAQ731-376
Chinese prisoner wins Nobel Peace Prize

 

[HamidEle]

Another question. If I have purchased some company stocks and also been working for this company as a contractor, can I work for some other companies at the same time?
Conflict of interest may exist,but we can manage to avoid it.