Employment contract interpretation

[Texas27]

Hello, how would the following salary statement be interpreted?

"your salary is $100k per year, including a 10% holiday allowance"

$100k a year or $110?

 

[quincy]

Hello, how would the following salary statement be interpreted?

"your salary is $100k per year, including a 10% holiday allowance"

$100k a year or $110?

Are you in the state of Texas, as your username implies?

Did you inquire of your employer what the salary statement means?

 

[Texas27]

I am employed by a US legal entity that is located in CA. My residence is TX. The contract is based on "Dutch Law" as it is a Dutch company. I am not sure what legality would take precedence in all of it.

 

[zddoodah]

Interpreting statements in contracts out of context is a fool's game.

The most I can tell you is that the quoted language is hopelessly ambiguous.

 

[Zigner]

Interpreting statements in contracts out of context is a fool's game.

The most I can tell you is that the quoted language is hopelessly ambiguous.

I agree, but for the record, the way I read that is that the salary is a little bit over $90,909 plus a bonus of 10% for a total of $100k per year.

 

[quincy]

The “including” is definitely problematic. Ask your employer whether the “including” means the salary is $100,000 “and an additional 10% will be paid as a holiday allowance” or if the salary is $100,000 “out of which 10% is designated aa a holiday allowance.” Your employer should know. We can only guess.

 

[Texas27]

The “including” is definitely problematic. Ask your employer whether the “including” means the salary is $100,000 “and an additional 10% will be paid as a holiday allowance” or if the salary is $100,000 “out of which 10% is designated aa a holiday allowance.” Your employer should know. We can only guess.

unfortunately I did not clarify it previously and I should have. My previous agreement was for the same salary, but without any mention or language regarding a "holiday allowance". And now of course the employer interprets it to their advantage. In essence no change in pay...just wording.

 

[quincy]

unfortunately I did not clarify it previously and I should have. My previous agreement was for the same salary, but without any mention or language regarding a "holiday allowance". And now of course the employer interprets it to their advantage. In essence no change in pay...just wording.

Ahh. So … are you looking for a new job yet?

 

[LdiJ]

Hello, how would the following salary statement be interpreted?

"your salary is $100k per year, including a 10% holiday allowance"

$100k a year or $110?

I will be honest, in reading that I would say that the holiday allowance was part of the $100k. Therefore total compensation would be $100k. The time to clarify that would have been before accepting the job. However, as someone else already noted, it is ambiguous.

 

[quincy]

Under the legal doctrine contra proferentem, ambiguous language in a contract is typically construed against the drafter of the contract.

https://www.oxfordreference.com/display/10.1093/oi/authority.20110803095635656

It matters that the previous contract had no mention of a “holiday allowance.” The addition of the holiday allowance to the contract means something. Looking at how holidays were paid in the past would be helpful in determining the intent of the drafter of the contract.

Apparently the employer believes that there is no additional pay for the holidays (no holiday “bonus”) so, unless Texas27 wants to argue the point with his employer, he will have to accept his employer’s interpretation.