I hope you can help me with my concern.
I'm working as a homebased online freelancer (Website/Technical tasks) for an LLC(Limited liability company) based in florida.
Recently, I was asked to sign an Independent Contractor Agreement which includes a Non Compete clause that says:
Non-Compete. Between the term of this Agreement and eighteen (18) months upon resignation, the Independent Contractor cannot participate directly or indirectly in the ownership, management, and operation of any business similar or competitive to the business of the Company including but not limited to the establishment, operation, management, or participation in whatever form in any entity with the same business as the Company; soliciting on a freelance basis or as an employee of another firm with the same business as the Company or its Clients; or engaging in any form of business or employment with any other company whose work-hours coincide with the agreed time allotted for the clients/tasks of the Company or would negatively impact the performance of the Independent Contractor.
d. Right to be trained and Train. It is the right of the Independent Contractor to be trained, by any means, of his tasks and in the event that the Independent Contractor resigns his/her duties withthe company, the Independent Contractor agrees to train the replacement for up to 2 weeks after the replacement is hired whether this 2 weeks is after or before the Independent Contractor's notice to resign.
In case of the violation of this clause by the Independent Contractor, the Company will be entitled to
terminate this contract immediately and the Independent Contractor shall incur charges of up to Php
20,000.00.
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Based on my understanding, as an Independent Contractor, I am my own business.
Is it legal for this LLC to require me to sign a non-compete which will prohibit me from working in the same line of business for 18 months?
They never trained me on any of the tasks I do for them, but they are requiring me to train their replacement once I resign or if I was terminated.
They also decide on how long a task should be completed. They provide me a list of tasks that I need to do in a certain amount of time. (e.g. create wordpress site - 3 hrs) so I only get paid for 3 hours no matter how long it will take me to finish their requests.
I'm a freelancer, if they prohibit me from working 18mos after termination/resignation, aren't they violating my right to earn a living?
Is it also legal for them to impose fines when they are not even registered here in the Philippines (they don't have any subsidiaries here in the PH)?
Please, I need advice on what should I do...
I really hope someone could help shed light to my concern as this is really bothering me.
Thank you.
(I apologize for any grammatical errors, I'm not really that fluent in english )