Contractual Compensation Dispute

Summary

The issue involves a potential breach of contract regarding compensation for an independent contractor. The original contract specified a total payment for January, with a pro-rated adjustment only if terminated early. The revised contract for February mentions compensation at the same rate, not amount, leading to a dispute over payment calculation. The companys legal team argues that rate implies a daily rate adjusted for Februarys 28 days. However, the original contracts lack of daily rate specification strengthens the contractors position. Consulting an employment lawyer is advisable to clarify the terms and address any potential breaches.

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Yes I have
It seems like your company is trying to adjust your compensation based on the number of days in the month, which isn't specified in your contract. Here are a few points to consider:
- Review Contract Terms: If the contract doesn't specify a daily rate or adjustment based on days in a month, they might not legally be able to change your pay.
- Employment Standards Act: Under the Ontario Employment Standards Act, employers must follow the payment terms agreed upon in the contract.
Would you like assistance in finding a local employment lawyer to discuss this further?
can I provide the contract and revised contracts?
You can certainly provide both the original and revised contracts to an employment lawyer for a detailed review. This will help them understand the terms and identify any potential breaches or misinterpretations. Would you like assistance in finding a local employment lawyer to discuss this further?
no would you be able to review/
Case Rating: *
While I can't review your contracts myself, I can offer some general advice:
- Review the exact wording in your contract regarding compensation.
- Compare the January and February pay calculations.
- If the contract terms are ambiguous or not followed, consider seeking legal advice.
If you change your mind about connecting with a local employment lawyer, feel free to let me know!
Here is the original contract details regarding compensation (January):
COMPENSATION The Contractor shall be paid by the Client a total of $$*,*.* (USD) for the Initial Term, payable on January *, *, pro rated by the day if the Agreement is terminated prior to the end of the Initial Term, in exchange for delivering the Services (the “Compensation”).

Here is the revised contract details regarding compensation (February):
COMPENSATION *. The Contractor will charge the Client for the Services at the same rate as outlined in Schedule “A” to the Original Contract. Compensation for Services rendered during the Initial Extension Period will be paid out on February *, *. For Services rendered after the Initial Extension Period, Compensation will be paid out bi-weekly.
Case Rating: *
It looks like your situation involves a potential breach of contract. Here are some key points:
- Original Contract (January): Specifies a total payment of $*,*.* for the Initial Term, with a pro-rated adjustment only if the agreement is terminated early.
- Revised Contract (February): States payment will be at the same rate as the original contract and does not specify any reduction based on fewer days in a month.
If your compensation is being reduced without a contractual basis, it may be worth discussing with a legal professional. Would you like further assistance?
this was the response from the legal team at the company:
Case Rating: *
Sounds like you're dealing with a potential breach of contract. Here are some steps you can consider:
- Review: Carefully compare the original and revised contracts.
- Communication: Document all communications with your company.
- Legal Advice: Consult an employment lawyer for a detailed review.
If you need more specific help, feel free to ask!
Here is the response from the legal department claiming they can do this:
The Contract Extension Document for February specifies that compensation will be calculated at the same rate as outlined in the Original Contract's Schedule 'A', not at the same amount.  This distinction is important because “rate” and “amount” mean two different things. The term “rate” implies using the original daily rate formula, adjusted for the * calendar days in February, to calculate compensation for this month. The term “amount” would imply paying the same dollar amount as in January. By using the term “rate” in the Contract Extension Document, we ensure consistency with the original contract terms while reflecting the actual services delivered in a shorter month. We acknowledge the section could have been clearer and apologize for any confusion

Please let me know your thoughts on this and if it is right, or there is breach of contract.
Case Rating: *
It seems like there may be a valid argument from both sides regarding the interpretation of "rate" versus "amount." However, the original contract's lack of specification on daily rates makes your case stronger for a potential breach of contract claim. Consulting with a legal professional could provide clarity.
Would you like to share more details about any specific sections that might support your position?