How much of a contract is a contract

STATUS OF CONTRACT INTERNATIONAL SCHOOL

I have been given a contract as a Head Master with a leading educational organisation in Vietnam and am due to start work on 1st January.It now appears that the organisation have not yet received their license and say they will not pay any staff until they get one, which could be months away.

I have gone to considerable expense, renting an apartment, deposit, ordering newspapers etc in Vietnam, as well as letting my own apartment in Thailand etc etc.

What should I do? Am I entitled to any compensation if they do not honour the contract, which is for 3 years? HELP.

You really need to consult a local lawyer. In England, if a clear offer of employment has been accepted, and the terms are clear, then there will be a binding contract. The fact that you have not yet started the job makes no difference. However, one would need to look at the wording of the contract itself to see how the school can lawfully terminate your contract. You say that it is for three years but is there any provision in the contract which allows the school to terminate your employment before the expiry? Of course, there is likely to be provision for early termination for gross misconduct etc and there may be a probationary period which would allow for early termination. Typically, an employer might have the right to terminate on, say, one month's notice, during a probationary period. They would be acting lawfully if they gave that notice or made a payment in lieu of notice. But, in the absence of such a provision and your contract remains for a fixed term of three years, then, under English law, if they breach the contract you are entitled to damages. This does not mean, however, that you can walk away with three years' money. You are under a duty to mitigate your loss. This means that you must look for alternative employment so that, if for example, you obtained another job immediately and suffer no loss, then you could only recover expenses. Assuming that they cannot terminate your contract lawfully before the expiry of three years but, within, say six months, you find another job at the same level of salary and benefits, then you will only have lost six months' money -- and your damages would be limited to that plus any expenses you have had to outlay. Of course, you would need to establish which law governed your contract. Since both you and the school are based in Vietnam, I would expect that the contract is subject to Vietnamese law. I have no idea whether Vietnamese law mirrors English law. So -- get yourself to a local lawyer ASAP. Bear in mind, however, that if the school might not be worth suing anyway. This may be a case of your putting it down to experience.

Thanks very much for taking the time to reply and for the information.

I heard today that the license will take up to 4 months and I have been advised to seek alternative employment until then.

The terms of the contract include a four month probationary period, during which time the contract could be terminated by either party, without reason.

I do not think that there is much milage in damages, but I do feel that the employers should accept, at loeast, liability for one months notice, and I will ask them for that.

I guess, however, that I will eventually have to put the whole affair down to experience as you suggest.

Thanks for your advice, and if there are any readers out there familiar with Vietnamese law, do contact me!

Pog

What does the contract say....that is the starting point....have a look, if it does not mention a conditon of "receipt of licence" affecting payment of your salary, then you are entitled.


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