Posted by: A | 2009/10/30


I am employed, through a labor broker, as a contractor at company A, which is part of a consortium. Company A has performed certain work for the consortium for a number of years. Company B has now bought the work share of company A in the consortium. This is very skilled work –  the resources are therefore very critical. Company A does not want to let go of the work share. The advantage that they got is the resources (I.e., us the contractors). Company A wants me to sign a memorandum of understanding that states that I will not talk/negotiate with company B. Company A is willing (in discussions –  do not know it that will be part of the document) to include me in profit sharing. The memorandum also states that I intend to stop working if company A is not included in the work share. Company A wants to force company B to include them in the work share. The obvious risk in not signing the document is that if company A are successful, then all profit sharing deals are of the table (because I refused to sign the memo). Company A may even terminate my contract. My questions are:

a) Must I sign the Memorandum of Understanding?
b) If I do sign this, how binding can this be? For example, if I refuse to stop working, what can Company A do? If I at that point talk to company B what can Company A do?

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Our expert says:
Expert ImageLabour lawyer


You certainly do not have to sign any memorandum of understanding. Unfortunately you might have to take a risk in this situation.

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