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The Most Sinister Employee Contract: You’re not our employee, but you owe us

April 20th, 2006 · 12 Comments

The other day, my sister texted me the following message while I was in my office desk:

“jon, and2 nko top draw, magsasgn na ng 2yrs contrct training sa 2008 pa ako work pero pwde ako freelance o part tme work na graphc artst”

See, my sister has been job hunting after she finished additional training for her career (cartoons and animation). She got an offer from a company called Top Draw Animation to be a “trainee.” By some twist of fate, the company’s offices are in the same building as my employer’s.

I texted back: “iuwi mo muna yung kontrata pag-aralan natin sa bahay”

She replied: “di daw pwede iuwi.”

I asked: “di mo ba pwede ipaxerox?”

Again my sister replied: “di daw pirma daw muna bago bigyan ng kopya”

That sent me scampering towards the elevator. An employer asking a potential employee to sign a contract ala-shotgun wedding without proper study of the fine print smells way too fishy for me.

When I got to Top Draw Animation’s office and my sister handed me the contract, I immediately skimmed through it looking specifically for three things:

  • whether the employment was full-time or part-time
  • whether my sister will be considered as a regular (probationary) or contractual employee
  • terms regarding her salary

I felt my blood pressure shoot up with what I saw instead.

These are not the exact words written in the contract (which I immediately gave back to my sister lest I tear it apart) but in a nutshell, the contract stated that:

  • My sister will be obligated to the company for a period of 24 months (yes, 2 years), during which she would undergo extensive training in different computer-animation related skills.
  • She may get to participate in a project after a year and a half, but that’s at the discretion of the company
  • If she quits within those two years, she must pay a fee equivalent to the monetary value of each training she already finished; if she reached the last module of the training she will have to pay around 200,000 pesos
  • Only after her training will she be considered for employment with the company. Ergo, she will NOT be considered an employee of the company until 2008, and only after the company’s evaluation of her performance in training
  • She is allowed to take on other part-time employment as long as it doesn’t interfere with her training or with her responsibilities to the company if they are asked for. However, the company reserves the right of first refusal for her employment in another company should that other company be considered as competitor
  • During those two years, her salary would be on a per project basis, meaning if she doesn’t get to participate in a project during or after her training, she gets nothing.

Moreover, the contract was around 9 letter-sized pages long. Nobody could properly evaluate all of the fine-print in one sitting, and once more the thought that they were forcing my sister into a quick-draw decision (pun unintended) angered me.

After handing the contract over to her I almost exclaimed: “Huwag mo tanggapin yan, ayaw ko yan.”

I immediately headed out the door and waited for my sister outside, fearing I would lose my temper and cause a commotion. It was only then that I realized that the office had a security guard at their door.

The building already has its own set of guards; why should a company have its own security guard at their office door?

My sister and I had a chat over coffee afterwards. I breathed a sigh of relief for my sister, who almost got herself in a lopsided rut had she signed that godforsaken piece of paper. I’ve heard of employee abuse and all kinds of labor code violations, but this is the only time I saw a company having the audacity to ask their potential employees to nail themselves on the cross by using a “take it or leave it” strategy.

If you are a professional, even just a budding one, in the cartoon animation field who believes that employees have rights that they have to defend, by all means, avoid Top Draw Animation for your industry’s sake.

Tags: Karir at Propesyon

12 responses so far ↓

  • 1 Sassy // Apr 21, 2006 at 12:06 am

    That companies can be that abusive shows how serious the unemployment problem is.

  • 2 carla // Apr 21, 2006 at 11:30 am

    2 years?! what the?! haynaku reminds of the time i was interviewed by a major daily newspaper. their VP admin told me i would work as a contractual employee for 5 months, then casual for 6. it would take me almost a year to be permanently employed. (is that allowed? don’t most companies put you on probation for 6 months?) by those terms alone i would’ve said no.

    you’re right, kuya jonjon. that contract was plain *insert word of your choice*. new employees shouldn’t be bound by such choking terms and conditions.

    as for the shotgun signing, i was faced with a similar situation months ago. fortunately, there weren’t any fishy terms (as confirmed by my dad days later) and the contract was a lot shorter. a contract like your sister’s should be reviewed. there’s no way a complicated nine-page contract can be read, clearly understood, and signed in one sitting. btw, i assume your sis eventually said no.

  • 3 Jon Limjap // Apr 21, 2006 at 2:01 pm

    Sassy,

    Unfortunately you’re right. But you know I’d also like to, one day, discuss the real reasons why corporations do all sorts of things to prevent their employees from becoming regulars.

    I’ll have to do a little research for that.

    carla,

    That’s the way they try to evade the duties they have as employers: which is, to withhold and remit income tax, SSS, Pag-ibig and Philhealth obligations.

    As far as I know, the Labor code doesn’t have a definition for “casual” employee, although I may be mistaken. If I’m correct, then that major daily newspaper is violating the law.

    Actually one year is short. Pero two years? Parang hindi nila kinonsidera na graduate si Angel ng MMA sa CSB. Sana hindi na lang siya nagcollege kung ganyan din lang.

    Naaasar din talaga ako sa shotgun signings, pero ang tingin ko, shotgun signings are done only by companies who are “insecure” about the terms that they offer. If you’ve nothing to hide, you shouldn’t be afraid of letting potential hires take it out of the office to study it.

    That’s our right, mind you.

    And you’re correct, she said no.

  • 4 Crissy // Apr 22, 2006 at 12:51 am

    She’s quite lucky to have a brother like you, who happened to be in the same building when it happened. But I would’ve done the same.

  • 5 Makapangyarihang Anghel // Apr 22, 2006 at 2:30 am

    Nakausap ko na rin yung batchmate kong nagwowork na ngayon sa Top Draw, pinabasa ko na rin sa kanya ang blog na ito at gulat na gulat siya sa pag-iba ng sistema. Pinauwi sa kanya ang contract noon bago niya ito pirmahan at sabi niya pwede naman raw yun, kaya nagulat na lang siya sa akin nung sinabi ko sa kanyang hindi pwede at kelangan pirmahan muna bago nila ibigay ang kopya. Nagulat rin siya sa 2 years training without allowance pa at malaki ang pinagkaiba sa sistema nila noon na may allowance pa per footage pa nga raw. Marami raw reasons kung bakit nila iniba ang sistema……..

    1. humina ung topdraw kasi naubusan na cla ng SHOWS! kaya kung mapapansin mo walang tao sa Traditional Animation!

    2, magiging per project ang bayaran nila! kaya sila lumilipat sa FLASH, kasi dun may allowance pa.

    3. May mga trainee na lumilipat ng ibang company, hindi tinatapos ang training o nang-iiwan sa ere sa reason rin na

    = hindi number of drawings (o footage ika nga) ung basehan ng bayaran..kundi folder (project) na mismo!
    = pwede kasing nagko-cost cutting sila!
    = ung iba nga nag-self destruct nalang e..meaning to say sinadya nilang mapatalsik cla
    = nangangailangan ng malaking sweldo…since nakapirma sya ng kontrata sa top draw..nag AWOL sya hanggang sa pinatalsik sya!

    Ang nakakaasar lang rito paiba iba sila ng sinasabi o paiba iba nga sila ng sistema. Tapos 2 times akong nagsubmit ng resume sa kanila. Unang submit kong resume nirecommend nila ako agad sa Innov8 since wala pa raw akong experience so mag-aral raw muna ako ng animation. Nag-orientation ako run at walangya may bayad pala kala ko naman libre training. So napilitan akong mag-aral pa ng 2d animation yun nga lang hindi sa Innov8 or 2d animation production mismo kundi sa First Academy of Computer Arts. After nung mag-aral ako Nagsubmit na naman ako ng resume at nagfill up ng application form, pinili ko ang category na wala pang experience at all sa mismong 2d animation production kung saan nakalagay naman sa application form na 1 year ka lang magtetraining without allowance kaya ok lang sa akin. Narinig ko pa nga sa HR na after one year obligated ka nang magwork sa Top Draw kasi sila ang nagtrain sayo ng libre so bakit ka pa pupunta ng ibang company? Sabi ng friend kong taga Top Draw mahaba na nga ang 1 year for training. At nung nag orientation ako nung Monday mismo parang hindi yata ako makapaniwala sa narinig ko na 24 months ang training without allowance? meaning to say 2 years? HHHUUUUWWAAATTTTTT!!!!!!!!!!! Kailangan ko yatang makapangasawa ng mayaman? eh nagpaalam na ako sa mama ko na 1 year training w/o allowance payag naman siya kasi alam niya dun na ako magwork after training. Tapos ngayon dinagdagan pa! Kamuntikan na akong maging siguradong pumirma pero naisipan ko na magtext muna bago pirma. Una sa mama ko, eh hindi nagrereply kaya kay Jon jon na lang since nasa same building siya nagwowork. Eh di yun nde ko na tinuloy pa. Pero kung ganun na sila ngayon pa lang wala na akong balak pang bumalik sa kanila kahit na expert na ako. May Walt Disney at Warner Bros pa naman dyan!!!! HAHAHAHAHAH HOW I WISH!!!!!!! Ngayon lang napipilitan na naman akong mag-apply as graphic artist at sana rin merong illustrator for comics or manga illustrator na work.

  • 6 cocoy // Apr 22, 2006 at 7:13 pm

    well the contract is a bit… one sided… still you guys got to understand that employers send people to train and expect a return on investment. i’ve had labor problems because being fair minded, didn’t ask my people to stay on for two years. you know what they did? second they got training, not even a week back— they leave, awol. and after spending millions on them… to hong kong for several days of extensive specialist training, they walked out on our company.

    granted the above contract isn’t fair on both parties. if you can’t accept the terms of the agreement, its best not to sign.

    when you’re an employer its different, all i’m saying.

  • 7 Jon Limjap // Apr 22, 2006 at 7:21 pm

    Cocoy,

    I understand what you mean. I think that was what the bond was for. But asking a person to train with you for two years without employing them is crap.

    I agree that there are a lot of employees who abuse companies this way. But I believe that somewhere out there there is a compromise that can be reached; a balance that can be struck.

    I just can’t let my sister put her life on hold for 2 years.

    Cap that with a shotgun-style “take it or leave it” demand on the contract and, well, that’s abuse on the employer’s side.

    Hell, I couldn’t even call them an employer. What do you call them if you do sign their contract? Dark Overlord? The Devil?

  • 8 claudine // Apr 24, 2006 at 5:06 pm

    well i think top draw maybe abusivein terms of the labor code but imagine spending 200,000 pesos on an employee they have to protect that money that they have invested into that person… the contract was okay its jut the way that they forced her to sign it was really irritating… my brother works for top draw they have good salary because they have a lot of work during season and i find the working area really motivating… plus the canteen is right inside… its just that sometimes what i hate about animation is when they rush your work and then if it comes out bad they give it to you back and forth.. i mean they shouldn’t rust it animation is art so it really undergoes different processes… all in all top draw isn’t that bad and their training is excellent its really a good place to work in… its just their stratgy of getting people that sometimes is really extensive.. ^_^ anyway, good luck to your sister hope she finds a good company to work in… ^_^ bye…

  • 9 andre // Apr 26, 2006 at 8:36 am

    it’s OK if they hold you in as long as you’re a paid employee since the company has a right to protect its investment. but if they hold you in and you’re in limbo and unsure whether you’ll be accepted as an employee or not and you’re not sure at all whether you will receive pay (since you’ll be paid only per project and who knows if you’ll ever be given one!) for the 2 years you’re stuck — now that’s unfair. you’ll probably end up wasting 2 years.

    move on and find another employer that’s fair to its (prospective) employees.

  • 10 Jon Limjap // Apr 26, 2006 at 8:36 am

    Hi claudine,

    While you may be right, I have to point out that my sister finished a degree in Multimedia Arts at DLSU-College of Saint Benilde.

    She has had *formal* training on cartoon animation before.

    The terms of the contract above might be favorable for, say, a fine arts graduate with no formal training on cartoon animation but wants to shift to that career track. Or a college dropout who loves to draw and likes to be a cartoonist.

    In that case that would’ve been okay.

    But bind her for two years for something that she has already had an education in, and has already *paid* for?

    Nevermind.

  • 11 the jester-in-exile // Apr 29, 2006 at 6:52 pm

    i agree with sassy — one contributing factor to such rather abusive HR policies is the increasing unemployment/ underemployment situation. from HR’s point of view, there’s a lot of supply, so the price of an employee is cheap.

    same deal, actually, with us engineers who work/ have worked for companies affiliated with SEIPI-ASPA. apparently there’s an undocumented “gentlemans’ agreement” that allows an HR manager to prevent his employee from better employment in another company by having his counterpart in that other company reject his application summarily… without consideration for qualifications.

  • 12 fellow-victim // Aug 10, 2008 at 12:16 am

    DON’T WORK IN TOP DRAW ANIMATION!
    Before 2006, it’s good to work there but after that and after Wayne Dearing and Stella Reyes (Now also Dearing) enriched themselves by exploiting cheap labor of dedicated and budding artists, their greed has turned Top Draw into a sweatshop.

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