# Signing an employment contract with a 3rd Party - need advise please :D



## NAE

If a company you might be joining says that if you are hired you will sign the contract with a 3rd Party [not the company that you will be working at], why do they do this and what are the disadvantages?

All they told me is:

a) That I will be listed as an employee of their company [although the contract is not with them].
b) There will be no profit sharing.

Does anyone have any information/advice about this type of employment contract?

Thanks


----------



## NAE

Ok, well I can't seem to find an info on this on the internet and I haven't received any responses here - does anyone know who I can ask that would know? I need this information by tomorrow or Monday ! 

Thanks!!


----------



## MaidenScotland

Sorry I have no idea but to be honest if you don't understand the contract don't sign it!


----------



## NAE

MaidenScotland said:


> Sorry I have no idea but to be honest if you don't understand the contract don't sign it!


Yeah I definitely won't sign it if there are things i don't understand, I just don't understand the concept of signing a contract with "Y" when I will be working for "X". I don't know if this is a common thing in Egypt...

Anyway, thanks for the response though


----------



## Beatle

I really don't understand what the purposes of the contract would be. I have not come across this type of employment contract in any jurisdiction unless you are going to have an employment contract with one company and for whatever reason are then seconded across to another company. My suggestion is that you ask them to explain why they would want you to sign a contract with anyone other than the employer but in most jurisdictions you would have difficulty in enforcing any rights you have under the type of contract you have described.


----------



## MensEtManus

I have never heard of such a contract, but if I were to make up some scenarios, here would be my list:

You are working for X but signed a contract with Y

1) X is a small company and has reached its limit of 10% non-Egyptians in their workforce (25% if the company has done an appeal)
2) X doesn't want to show that they have a person with your salary/qualifications and they are hiding your application in Y. Hiding from taxes, or any relevant government authority. In Egypt, almost all companies hide the salaries of their employees in order to pay minimum social security expenses. They also do the aforementioned method as to protect the company from bad employees (technically, firing is very difficult in Egypt - firing at will is not allowed, but if a company cannot fire an employee they at least pay a very small salary, because they hid the salary from their expenses as stated previously).
3) X wants to easily kick you out of their company and if they are forced to kick you, they have Y to deal with you
4) maybe X is a subsidiary of Y (or did they specifically say it was a 3rd party?)

Overall the contract sounds very fishy, and makes virtually no sense


----------



## NAE

MensEtManus said:


> I have never heard of such a contract, but if I were to make up some scenarios, here would be my list:
> 
> You are working for X but signed a contract with Y
> 
> 1) X is a small company and has reached its limit of 10% non-Egyptians in their workforce (25% if the company has done an appeal)
> 2) X doesn't want to show that they have a person with your salary/qualifications and they are hiding your application in Y. Hiding from taxes, or any relevant government authority. In Egypt, almost all companies hide the salaries of their employees in order to pay minimum social security expenses. They also do the aforementioned method as to protect the company from bad employees (technically, firing is very difficult in Egypt - firing at will is not allowed, but if a company cannot fire an employee they at least pay a very small salary, because they hid the salary from their expenses as stated previously).
> 3) X wants to easily kick you out of their company and if they are forced to kick you, they have Y to deal with you
> 4) maybe X is a subsidiary of Y (or did they specifically say it was a 3rd party?)
> 
> Overall the contract sounds very fishy, and makes virtually no sense


They specifically said that if I am hired, the contract will be with a third party, and asked me if I was OK with that.

The company is a very large multinational company [headquartered in Europe], that's why I don't understand this 3rd party contract deal. When they contact me about the contract I will ask why it must be with a 3rd party, but I need to understand the disadvantages of this type of contract before I speak with them, I obviously can't rely on them to explain the disadvantages.

The third party is not a subsidiary of the company employing me, so its all a bit confusing.

I am assuming they may hire me as an Egyptian because I also have the Egyptian nationality.

Maybe my only option is to just see what they say, and make sure everything is clear before signing anything.

Thanks everyone for your input!!


----------



## MaidenScotland

Ahhh now is the job in Egypt?, maybe they are hoping to get you here and then just pay a local salary as they will be employing you as an Egyptian, so the third party maybe the Egyptian location... personally I wouldn't touch it.


----------



## NAE

MaidenScotland said:


> Ahhh now is the job in Egypt?, maybe they are hoping to get you here and then just pay a local salary as they will be employing you as an Egyptian, so the third party maybe the Egyptian location... personally I wouldn't touch it.


Yes the job is in Egypt, and I am already in Egypt.

I don't really know what to do, the only reason I will hear what they have to say about this issue is because it is a well know multinational company. If after this, it still sounds dodgy, then I'll forget about taking the job.


----------



## Beatle

Does the multi-national company have a legal presence in Egypt?


----------



## NAE

Beatle said:


> Does the multi-national company have a legal presence in Egypt?


Yes it has a legal presence in Egypt, it is as well know as Microsoft, Vodafone or Orange.


----------



## Rhudetz

Is the 3rd party some type of joint venture? What industry is this in?


----------



## cutiepie

My Husband is a sales agent for vodafone but is actually employed by a different sales company ...its strange he has vodafone id vodafone business cards etc but is actually employed by a sales company(cant remember their name) who handle various sales .....maybe its something like this????


----------

