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Q: Employment Agreement - Verbal Agreement - Work without Pay? ( Answered,   5 Comments )
Subject: Employment Agreement - Verbal Agreement - Work without Pay?
Category: Business and Money > Employment
Asked by: xx1-ga
List Price: $40.00
Posted: 31 Jan 2004 01:20 PST
Expires: 01 Mar 2004 01:20 PST
Question ID: 302077
I recently resigned from a job, and now my x-employeer is lieing,
stating that I enter into a verbal agreement to work until a specific
date (1 month from now) without pay. The employeer is demanding that I
continue to work for them 'without' pay, for this period of time,
otherwise they will sue for damages. (they are demanding 3 hours of
work per day, and to respond to all 'emergency issues')


The issue is complicated by the fact that I resigned from company A,
and took a job at company B. (Company A owns Company B)  While working
for Company B, I did provide (3 hours per day) services to Company A.
My understand is that while I 'worked' for Company B, Company B was
essentially contracting my services to company A. Company B payed me
as did Company A when I worked there. I havn't worked for Company A
for almost two months (I also gave 1 months notice). I have the record
of employment from Company A, from 2 months ago.


Is this possible? What are my options? Does an agreement not require
an exchange of goods or services, in which each member gains

- canadian law
- my employment agreement requires no notice period
- I worked for company B for only 6 weeks
- the work enviroment is incredibly hostile, and I feel threatend by
the x-employeer
- the x-employeer has commited several acts of slander and defemation towards me
Subject: Re: Employment Agreement - Verbal Agreement - Work without Pay?
Answered By: darrel-ga on 27 Feb 2004 16:10 PST
Hello XX1--

I have carefully read your question, researched your concerns, and
have your answer. I will answer each of your questions individually,
as to provide you with the most detailed response.

First, again, to reiterate the Google-Answers Terms and Conditions
provide that my answer should not constitute legal advice, as I am not
an attorney.

"Is this possible?"
Yes, it's possible that they are telling you that you're lying. It's
not uncommon for business people to say anything it takes to get what
they want. And they will only get what they want if you go along with
what they say.

The bottom line is that your contract agreement with them will hold
the most weight in this matter. Anything you have in writing will
reign supreme. Further, a verbal agreement will likely only be upheld
if there are witnesses to the agreement or if both parties atest to
the fact that "a verbal agreement" existed.

What are my options? 
1) Consult an attorney. You will want representation here in case this
matter should go any further than it has progressed already. To find
the best attorney for this matter, call your local attorney referral
service and ask for the names of some "employment attorneys" in your
area. An attorney will be able to look closely at your situation and
give you proper advice.

2) If you are looking to handle this situation without the help of an
attorney, I would simply walk away from the situation. After all, why
would you agree to work for no cost? The verbal agreement your
employer says you made, based on what you established here, makes no
sense. If your employer truly wanted an agreement with you to work for
a certain period of time without pay, your employer most certainly
should have gotten that agreement in writing to avoid potential legal

"Does an agreement not require an exchange of goods or services, in
which each member gains something?
Not necessarily. An agreement is only what the two parties make of it.
Once an agreement is made, in writing or verbally, the judicial system
would rule that both parties must adhere to the agreement.

I conducted some research for you to further help you that you may
find of interest. To find these sites, I searched the following terms:
canadian "employment law" contract

You may view the results of my search online. The link is

If you need any additional information or clarification, please don't
hesitate to click the "clarify" button.


Subject: Re: Employment Agreement - Verbal Agreement - Work without Pay?
From: politicalguru-ga on 31 Jan 2004 01:47 PST
Dear XX1, 

The disclaimer on the bottom of the page states that the advices here
are not professional legal advices. In your case, my advice to you,
since you claim that the written contract demands no such thing, and
that there was no verbal contract, that you'll consult a labour lawyer
in your area. Many would represent you for a part of the damages
you'll sue for work-place environment, slander, etc.

If you would like, I could give you a list of lawyers in your area
specialising in labour law, who could help you (in addition, if you
are a member of a union, they might help you).
Subject: Re: Employment Agreement - Verbal Agreement - Work without Pay?
From: politicalguru-ga on 31 Jan 2004 01:53 PST
I forgot to add, that it seems to me that your boss is trying to bully
you into working for free. You weren't sued by him, he just tells you
that yu "owe" him.
Subject: Re: Employment Agreement - Verbal Agreement - Work without Pay?
From: claudietta-ga on 02 Feb 2004 00:08 PST
Dear xx1, 

In the US, "forcing" anyone to work (even for money) is akin to
slavery.  It is forbidden for anyone to force you to work at all, even
if you had a written, implied, or oral contract to work for any amount
of time under any conditions.

I wish I could help you more, but you should search under "labor law"
"employment" contracts".  You should definitely be able to get that
information online.

Subject: Re: Employment Agreement - Verbal Agreement - Work without Pay?
From: claudietta-ga on 02 Feb 2004 00:10 PST
--additionally even if you "employment contract" indicate that you
must give a certain amount of notice, legally you don't have to do so.
 That would be a kind courtesy on your part, especially if you want
references, however, all of us are entitled to walk out of work at any

Subject: Re: Employment Agreement - Verbal Agreement - Work without Pay?
From: aht-ga on 02 Feb 2004 00:57 PST

Is it possible for you to tell us the following?

- which province did the employment occur in?
- what was your profession/position while working for these companies?
- was your position considered a 'managerial' position?

This type of question deals in employment law, which is covered under
provincial legislation that varies from province to province.
Providing the above information will help in directing you to the
appropriate resources. While generally what my colleagues
politicalguru and claudietta say is true, there may be extenuating
circumstances as a result of the law in your particular province. Your
best bet is to consult a lawyer that specializes in employment
matters, however we may be able to provide some pointers based on your
response to these three points.


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