Hello All, My ex-boss has started a Startup last year called "CyberArts Bilism Inc" - An Company which is registered in Turkey and I have entered into Consultancy agreement with him. My last year's salary was $1600/PM but as my ex-boss has requested to join him and I agree to work for him at less take-home salary which is around $1000 PM and 20% commission on what a company earns. My title was Sales Director. Current Scenario - As per agreement after 3 months he should increase my base salary and now when after 4 months I am asking for raise otherwise I will leave, he is saying that you pay $10,000 and free to go. I have signed the agreement on Dec - 2018 and governing court is Istanbul court. Here are the clauses and Annexure - Annexure - 3 Service Term 12 Months 4. Fee 1000 USD base fee + 20% (over the CyberArts’ contract margin) as sales commission (*). Base Fee is only valid for 3 months from the contract start date. After 3 months, the base fee will be revised and mutually agreed between both the parties and Confirmation Letter (1 Pager) for the same will be regarded as a legal and valid document. 5 Invoicing The base fee, and the sales commission (for the sales of each client that has been collected by CyberArts) shall be invoiced by the Consultant to CyberArts at the last day of each month. 6 Payment Term Date of notification of invoice + 5 days Clauses he put for the termination are these - 10.1 This agreement shall take effect on the date of its signing and shall be valid for the period specified in Annex-1. The agreement shall automatically be renewed and shall continue to be in force in the following years in the same manner, unless one of the parties sends a notice of termination at least 30 days before the date of expiry of the Agreement. 10.2 Parties may terminate the agreement provided that the counterparty breaches the agreement nd doesnt provide a remedy within 3 days upon written notice. 10.3 If the consultant acts in voilation of the lesgislation or this Agreement or terminates this Agreement before the expiry of its term or causes CyberArts to terminate the Agreement due to Consultant's wrongful acts, 1) Consultant shall not be able to claim the fees which it has become entitled to till then but have not yet been paid to it. 2) It shall also pay CyberArts pentaly clause twice the amount of fees paid to it under the Agreement till then, which is to be not less than $10,000 So my Question is - Can CyberArts drag me into legal. As per my understanding I am write as in Annex its clearly mention after 3 months he should increase my salary and if he breaches as per 10.3 then I can terminate the agreement. Please advice urgently.
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for increase in base fees both parties have to agree . it can be done only with mutual consent
2) if company is not willing to increase the base fee you can terminate the agreement on account of his failure to increase the base fees
3) issue him notice for termination on account of breach of contract in revising your fees
4) deny your liability to pay money demanded by your employer
No legal complication, boss has violated the contract, so you are free to go, no claim arises.
issue a legal notice for termination on breach of contract .You can terminate the agreement if company is denying to increase pay. you are not liable to pay $10000.
Thanks for answering everyone. I have 1 more Q - As per my boss there is no clause( as per him annex is not a clause) which is mentioning about the base salary so I can't end the contract and I should work for him. But in the contract Clause No 17 - "The annex written below is an intregal part of this agreement" So this means whatever written in Annex is not followed properly then automatically breach happens?
annexure has to be regarded as part of agreement
2) if employer fails to agree for increase in base salary you are entitled to terminate agreement
3) the only problem is it is subject to jurisdiction of courts at Istanbul which would be an expensive proposition
As per the agreement he should raise the same.You can try him for breach of contract in the same.
Annex is integral part of contract and non can be forced to work forcefully, such contracts not valid against employee.
If you have been served with a notice demanding to pay the said amount on your resignation, then you may issue a reply notice denying the allegations leveled against you.
In your reply notice you may also draw the clauses which are in your favor especially the ones which have been breached by the company.
Let them proceed with the case at Istanbul, you are not going to get there to contest the same hence for the present you remain silent on that issue and watch the developments.
Your boss cannot interpret law ion the manner known to him and force it on you.
Let him tell anything you may proceed as per law.
Discuss with your advocate and give a fitting reply first and then plan to encounter him accordingly.
