Question

In: Economics

Site Management Solutions, Inc. of Columbia Maryland, is a data center design and management consulting firm....

Site Management Solutions, Inc. of Columbia Maryland, is a data center design and management consulting firm. Site Management Solutions employees sign an initial two-year employment commitment and the most promising employees are given extended job tours overseas. Since overseas experience is highly desirable, giving the employees a chance to command much higher salaries, prior to being posted overseas employees agree to work for a specified additional time upon their return to Maryland. Jeff worked for Site Management Solutions, but then he quit and formed a competing company which he called Data Center Design, Inc. His new company contacted Site Management Solutions employees by phone, offering higher salaries and bonuses if they would come work for Data Center Design. At least 10 former Site Management Solutions employees, several of whom had recently returned from overseas, left their jobs without completing their contractual obligations and went to work for Data Center Design. Site Management Solutions sued. What did it claim, and what should be the result?

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Expert Solution

SOLUTION:-

Background / Brief Summary of the issue

* Employees signs a two year employment commitment with site Management Solution company.

* Jeff was working at site Management Solution company.

* Jeff had left teh site Management Solution company, and formed competeting organization named Data Center Design.

* Jeff's organization contacting employees of his previous organization & with high salary proposal.

* 10 of employees (including overseas returned) left Site Management Solution and joined Data Center Design (Jeff's organization).

* Site Management Solution organization sued.

Claim Sued by Site Managegement solution - Site Management Solution sued. The claim is that the employees of site management Solution has not completed their employment contract with organization. They had two year working contract and additional time contract for overseas employment. Penalties to be made against teh employees who have not completed the employment contract with Site Management Solution.

Expected Claim Result - Since the employees had a signed employment contract which they have not completed, then the result will be in favour to Site Management Solution company, as the company had a signed employment contract with employees. The employees are suppose to work at Site managegent solution organization as per their signed contract. The court will ask the employees to work at Site Management Solution as per their contract else will need to pay the penalities.

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