This is additional information: We had a meeting on Thursday informing of changing our employee contract. The process is changing us from an employee of the company to self-employed contractors. Why do I have to sign an "termination" letter? They claim it is so they can transfer
me over to an "independent contrator" but it seems weird since its an termination at will
The real reason they are doing this is because now they do not have to pay the additional SS tax of 7.65% and also will not have to provide workers comp for us. They tried to play this off as a good thing and even offered a 5.00 bonus a day. There is no way this additional 5.00 a day will compensate for the tax increase. It also does not even consider the bookkeeping aspect the employee needs to do quarterly.
I email the owner asking if they were going to compensate us for this additional fee and the owner of the company tells me that he needs to get in contact with the accountant to "check on some things". I am sure he knew what he was doing but I called him out on it. Today I was told they decided to offer us 10 dollars more per day to compensate for this. The way they explained it away was that we were going to be changed to a higher position in our job even though it never existed before.
We were sent a termination of our current job contract, a new contract with our pay, etc to sign. This contract stated we should consult an attorney even though they sent this new contract out at 430 PM on Friday. It required us to sign this contract by the end of the day Saturday.
This gives us ~24 hours, on a non-business day/holiday weekend to try and find an attorney to review our contract. It seems they are strong arming us into signing this contract and strategically sent it out on the end of the business day on a holiday weekend. The contract even states we should contact an attorney to look over the contract before signing.
Questions: Can they give us this short of time to review a contract and sign it?
Are there any other things this company should provide for a “self-employed contractor” if they are “employing” us?
Are there any other glaring issues that may be here?
In our prior contract, we had a “non-compete” section that prevented us from working for a competitor for 2 years after leaving the company. Does signing a termination of employment/contract release me from say applying at a competitor?
EDIT: So this is what they sent me.
Position Termination Notice. This is a standard letter that is provided to notify you of your termination of your current direct employment status.
Separation Agreement and Release. This is a standard agreement that provides all the legal information concerning the end of your direct employment status.
Independent Contractor Agreement. This is your new contract for 2017.