Article

3 year contract, 30 days without termination both sides

Provided by:  Jennifer Kirschenbaum, Esq.

October 29, 2019

 
Question:

Jennifer, 

I received an offer and an agreement that was supposed to be for 3 years, but I think the agreement has a 30 right to terminate for both sides.  Now what?  Is this a 3 year contract? 

Thanks, 
Dr. M


Answer:
 
Sort of.   Let me explain.  Without seeing the Agreement, it sounds like you can get out or they can fire you without cause on 30 days notice, which is short.  Usually I see 60-90 days as a minimum....  I also normally see employer reserving the rights to push you out earlier than the notice period and you would only qualify for payment (severance) during the notice period, so 30 days would limit you here from the average I typically see.   

Of Note - Termination rights aside, other relevant provisions to the offer would be governed by the 3 year term, such as the employer's promise under the compensation structure, duties, fringe benefits, etc.  So long as you are employed, the parties would be bound by that agreement, unless amended or supplanted by its terms.  

With any contract, do not sign it until you understand, which should include legal review. 

As a reminder, which most of you know, for residents and fellows (ONLY), we review for a flat rate of $500 for the assessment/review for each contract (does not include negotiation), otherwise the assessment is on the clock.  

You can send contracts direct to my attention or Taryn.  




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3 year contract, 30 days without cause termination both sides 

 Question:

Jennifer, 

I was given an offer with a contract for 3 years for the term, but I think it also says I can leave for they can fire me without cause on 30 days notice.  How long is my contract actually for?  Can I bank on the 3 years? 

Thanks, 
Dr. M

Answer:

Sort of.  Without seeing it, and you should send it over, sounds like you have a 30 day contract as far as security goes.  You can walk and they can push you out, no questions asked by either party, on 30 days notice.  I'm also guessing that notice can be accelerated if they pay you out for the 30 days - I'd have to check the language on that, and at what rate they might pay.  30 days is short notice.  Usually I see 60 or 90.  

I say "sort of" because the offer / guaranty with a 3 year term speaks to other commitments in the agreement beyond guaranteed employment.  The 3 year term will apply to compensation, including benefits offered, schedule, services, etc.  So long as the agreement is not terminated by either party, the employer is telling you their obligation to you and your commitment to them for the next 3 years are the terms laid out in that agreement.  So, even though it may say 30 days, and I agree you are not guaranteed the 3 years, if you do stay the 3 years, what you get is what you got in the agreement.  1. Make sure you understand the agreement.  2.  Make sure you are comfortable with the agreement.   To have it reviewed, email it to me and I'll be able to estimate how long it will take.  

For residents and fellows, most of you know we cap the review / assessment (not negotiation) at $500 (applies to residents/fellows only).  

Looking for the KK Healthcare Exchange?  Click Here. 

MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
Click here to learn about
K&K's Prepaid Legal Audit/Investigation Defense Now!
3 year contract, 30 days without termination both sides-Jennifer Kirschenbaum-October 29, 2019

Article

3 year contract, 30 days without termination both sides

Provided by:  Jennifer Kirschenbaum, Esq.

October 29, 2019

 
Question:

Jennifer, 

I received an offer and an agreement that was supposed to be for 3 years, but I think the agreement has a 30 right to terminate for both sides.  Now what?  Is this a 3 year contract? 

Thanks, 
Dr. M


Answer:
 
Sort of.   Let me explain.  Without seeing the Agreement, it sounds like you can get out or they can fire you without cause on 30 days notice, which is short.  Usually I see 60-90 days as a minimum....  I also normally see employer reserving the rights to push you out earlier than the notice period and you would only qualify for payment (severance) during the notice period, so 30 days would limit you here from the average I typically see.   

Of Note - Termination rights aside, other relevant provisions to the offer would be governed by the 3 year term, such as the employer's promise under the compensation structure, duties, fringe benefits, etc.  So long as you are employed, the parties would be bound by that agreement, unless amended or supplanted by its terms.  

With any contract, do not sign it until you understand, which should include legal review. 

As a reminder, which most of you know, for residents and fellows (ONLY), we review for a flat rate of $500 for the assessment/review for each contract (does not include negotiation), otherwise the assessment is on the clock.  

You can send contracts direct to my attention or Taryn.  




MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
 

3 year contract, 30 days without cause termination both sides 

 Question:

Jennifer, 

I was given an offer with a contract for 3 years for the term, but I think it also says I can leave for they can fire me without cause on 30 days notice.  How long is my contract actually for?  Can I bank on the 3 years? 

Thanks, 
Dr. M

Answer:

Sort of.  Without seeing it, and you should send it over, sounds like you have a 30 day contract as far as security goes.  You can walk and they can push you out, no questions asked by either party, on 30 days notice.  I'm also guessing that notice can be accelerated if they pay you out for the 30 days - I'd have to check the language on that, and at what rate they might pay.  30 days is short notice.  Usually I see 60 or 90.  

I say "sort of" because the offer / guaranty with a 3 year term speaks to other commitments in the agreement beyond guaranteed employment.  The 3 year term will apply to compensation, including benefits offered, schedule, services, etc.  So long as the agreement is not terminated by either party, the employer is telling you their obligation to you and your commitment to them for the next 3 years are the terms laid out in that agreement.  So, even though it may say 30 days, and I agree you are not guaranteed the 3 years, if you do stay the 3 years, what you get is what you got in the agreement.  1. Make sure you understand the agreement.  2.  Make sure you are comfortable with the agreement.   To have it reviewed, email it to me and I'll be able to estimate how long it will take.  

For residents and fellows, most of you know we cap the review / assessment (not negotiation) at $500 (applies to residents/fellows only).  

Looking for the KK Healthcare Exchange?  Click Here. 

MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
Click here to learn about
K&K's Prepaid Legal Audit/Investigation Defense Now!