A Shattered Life

There has been a lot of things that came and passed the past few months. The most significant one is the almost non-renewal of wifey’s contract with her current client. She only have a 6-month contract which was due for renewal last February. Prior to our visit to Manila, she was informed that she will be renewed for another month. So we came home confident that when we come back, she’ll still have a job. Besides, there’s a project she is doing and is due for implementation.

But just a few days into the end of her contract, the agency called informing her that she will not be renewed unless she agrees to a pay cut. The client is asking for a 12% adjustment on the rate that the agency is charging the company. The client also specifically requested that the consultant’s rate must not be changed. As the agency is known for charging a premium of around 100% markup on the consultant’s rate, it would not hurt. But they did try to pass the 12% to my wife’s rate which we readily objected.

When the adjustment was cleared with the client, they went confronted the agency. They specifically informed the agency that the consultant’s rate must not be changed. And neither us will agree with the cut. It’s a significant adjustment that will make their rate uncompetitive already. So the company’s HR had to quarrel with the agency over the new rate.

Between my wife and the agency, we sadly had to go back to the contract. And we had the following provisions on our side.

1. No changes in renumeration is allowed within twelve months
2. The contract is not automatically terminated at the end of the contract. A written advice is required 30 days prior to the end of the contract. The contract is in-force until the end of the 30 days period
3. Any change in renumeration must be notified in writing

After several heated discussions between the client and the agency, the client just decided to extend the contract until June of this year. That’s the end of another project that’s lined up for my wife. After that, there will no longer be any renewal. The rate that the agency is charging the company is just too high for them and with more pressure from the management to limit spending, wifey’s contract will get the axe.

So for now, we are looking for another opportunity for her. At least, we have time to prepare and won’t be caught flat footed just like in February. Although at this point in time, it won’t be easy. Singapore is on its third quarter of recession and the outlook isn’t good. Many expect that the financial crisis will last for at least another year. And job prospects just become more scarce. We have friends who has been looking for job since November 2008.

So what we are just praying now is for her to be renewed come June. We are hoping that the company change their mind by that time and decide to continue my wife’s contract. If there’s anything that we learned from it, it is to read your contract carefully and understand it. Don’t just renew and go with what your agency say. Another thing is to always go to the safe side. That means if you can get a longer contract, then get it.