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Topics > Business Planning How To's > ID: 1889

Your Termination With Or Without Cause...

Posted Date: Dec 21st, 2008 22:16 | Hits: 693

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  • Daniela Riess
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  So you've joined a great company? For what purpose? If you are like most people, the ultimate reason was to retire in X amount of years, right?...
Wrong!... Well, ''wrong'' for 95% of us at least!
Why ? Because of the contract you've signed right before you gave all your personal info to the company.

Lets look into what they call ''Distributor obligations and responsabilities''

If you say that you never signed a contract, think again...
''Check the box if you agree with the policies and procedures''... does that ring a bell?
All legal companies have a contract that by law you need to sign.  
If you look for it, it should be on the first page of the companies corporate website...or not.
I said it should be for a reason. Not there? Well, here is your first red flag...
Not to confuse ''policies and procedures'' with ''terms and conditions''. They are two separate things.

* Sometimes companies require that you sign up before you can see the contract. That is absolutely insane.
Translation: ''Give me your money and only then I'll tell you if this business model works in your best interest or not.''

* How long is your contract?
The longer the contract, the greater the possibility that the policies important to you are being hidden in "Legalese".
The writers of your contract ( usually lawyers) know that most people lose focus after reading the first few pages so the worst stuff is on the last few pages.

* Do you have a ''yearly contract renewal''? If you do, did you know that the company has the right to not renew your contract?

* Do you have the word ''termination'' in your contract? That should not be there. Period!
''With or without cause'' ? That means that they could pretty much terminate you for any reason including but not limited to... you being too tall or too short.

* Do you have the word ''ongoing'' ? It could be ''ongoing selling'', ''ongoing training'', ''ongoing motivation'', ''ongoing communication with your downline''...
Not just that, you also need to provide the company with proof of your ongoing communication. You have to start using a file cabinet and fill it out with the proofs of all the e-mails and phone calls between you and your downline.
And you better have all that available if someone asks for it, otherwise you can be terminated.
Translation: You could never retire, you'll have to constantly motivate, recruit and sell till the day you die.

* Sometimes the company can terminate you ''if you violate the policies and procedures or for any other reason'', at their ''sole discretion'', ''with or without written notice''.
Translation: They don't have to tell you why they've stopped paying you, and if you go to court you have nothing in your hands to prove anything.

* How about the ''actions of household members''? Why would you be held responsible for what your spouse (that is not in your business) says or does?

*  ''Succession''?
Did you ever wonder what happens to your bonuses if something happens to you? Well, it might say in the contract that your successors ''must qualify''.
Translation: If they don't continue selling, recruiting etc..., then they lose all your hard earned money.

Did you just say ''they would not do that to me''? Oh...but they can and they will!...
They did it in the past and they'll do it again!
If they don't mean it, then why is it there?

I understand that the company needs to be protected, but how about you and I? Who is protecting us?
Answer: No one but our due diligence before we join. 
Make sure that your company has your best interest at heart! A contract should be a two way street.
Does this contract protect you or the company?

Oh, and one more thing. If it so happens that you want to sue them, you might not have the right to a trial by jury, or, you might have agreed that you don't hold them responsible...

I appreciate you,
Daniela Riess


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Your Termination With Or Without Cause... Dec 21st, 2008 22:16
    So you've joined a great company? For what purpose? If you are like most people, the ultimate reason was to retire in X amount of years, right?... Wrong!... Well, ''wrong'' for 95% of ...

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Member's comment

pplcheryl63  Dec 21st, 2008
Let me put it this way, and I spent 12 years with a police department believe me I am familiar with legalese. If you did not pass the bar (I don't mean the one on the corner that has two for one margaritas during happy hour), you better find someone who has to read it for you. Anyone can read a contract, understanding what you just read is a whole other ball game. And it's not just the wording, the punctuation or lack thereof can change the entire meaning of a document.

Anyone can read a contract, I can read Spanish. I have about as much understanding of what I'm reading as the average person has reading a legal document of any type, little to none. You don't want to read contracts, you want YOUR LAWYER to read your contracts before you sign them.

Kevin  Dec 21st, 2008
or you've agreed to arbitration only by arbitrators and lawyers that THEY get to choose! Read the fine print ;)

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