How is your Breach of Contract Fee?

James Huffman · May 19, 2007

For nurses who have contract with their current employer, I appreciate your input.
I would like to resign from my current Employer which is a Nursing Agency but my cancellation fee or breach of contract is equivalent to 1-year gross Salary which is atleast $45,000 .. this doesnt yet include according their contract the fees they incurred during the immigration process etc.. so more or less we projected this to be about $50,000.. We are very upset about their system which doesnt protect and take care of us nurses so Im on a end of the rope now and going to resign.. So do you think this fine is just enough?
How much then is your breach of contract fee?
(I heard some or my nurse friends.. some of them are around $5,000, $10,000 but not more than $15,000)
is my nursing agency being reasonable?

The question isn't whether the agency's being reasonable. The question is what the contract you agreed to stipulated. A one year salary fee sounds like a lot to me, too. But apparently you agreed to it. And if you did, they are probably legally entitled to collect it. If you want to know if there's a way out, you might contact an attorney who specializes in employment contract law, and have the attorney examine the contract.

Nurses who are thinking about signing a contract should ponder this. Read, and re-read a contract before signing it. Think about the stipulations. Ask yourself if you're ready to abide by them. If you're not ready to, then either get the employer to change the stipulations, or look elsewhere.

I'm sorry that you're upset. But nurses have to learn to "protect and take care of themselves," and stop grumbling about something we've agreed to. No one forced you to sign the contract. You did it on your own accord.

chuck1234 · May 19, 2007

I have heard $10,000.

But each agency is different...

I supposed that you have read the contract before signing it.

It is a legal document. Once you signed it, you are liable to it.

Silverdragon102, BSN · May 19, 2007

once you sign you are liable. I would check out the international forum as I think this is more appropriate there and there is a thread about contracts

bryan1983 · May 19, 2007

Im soorry for what had hppened to u. hope u fix ur problem soon :idea:

suzanne4, RN · May 19, 2007

Will move to the International Forum, as this is an international contract. They are different from the contracts that Americans have as they usually include petitioning for the green card, etc.

And unfortunately, $45,000 is becoming the common fee that we are hearing. But please check with an attorney before you do anything. And one that does not work for the employer that did your contract.

RGN1 · May 20, 2007

The agency I nearly went with had a contract that had a $10,000 get out fee. Another two agencies would have been $25,000 and $27,500 respectively.

However, in the end I found a job with a hospital direct & have no get out fee because I'm paying for everything myself.

unfortunately you signed your agencies contract so unless you want to pay their fee then I think you're going to have to fulfil your obligations.

Only thing I hope is that others will heed your story and think about what they are signing up to!

The fees for some agencies are totally extortionate. I think that $10,000 should be the absolute max because going it alone costs around $8,000 all in (depending on number in your family etc) from N-XCLEX revision to immigration/lawyer fees. So $10,000 still gives them a good profit, especially considering most of them are also taking at least $2 per hour from your wages too!

Hope everything sorts itself out for you though. xx

suzanne4, RN · May 20, 2007

Most agencies take $5 per hour, not $2 per hour. That is how it comes out to $10,000 that they get for each year of your contract.

pinoy_guy · May 20, 2007

most agencies take $5 per hour, not $2 per hour. that is how it comes out to $10,000 that they get for each year of your contract.

a friend's agency is getting $10 to $12 per hour.

after working 6 days a week for how many months, she said she'll be buying out the rest of her contract and moving to ca.

she doesn't have any regrets signing up with the agency--she said she had a difficult time looking for an agency while she was in the philippines, and the agency did help her with her board and lodging, her green card, and her driver's license.

i think the agency got too much of her blood, sweat and tears for what she got.

suzanne4, RN · May 20, 2007

Then that is not an agency that places the nurse with a facility. Sounds more like a per diem agency in general for nurses.

Going rate for an agency contract for a foreign nurse is $5 per hour, or $10,000 per year of the contract. If it is a per diem contract, then the structure is completely different and cannot be classified as the same. They are entirely different. And if per diem, then it is actually even more in many cases, but that is not the norm for foreign nurses.

RGN1 · May 20, 2007

Most agencies take $5 per hour, not $2 per hour. That is how it comes out to $10,000 that they get for each year of your contract.

OUCH! That's worse than the agency I was going to go with. I based my estimate on what the agency had offered me compared to what the hospital offered direct hire. I guess I had at least been with one of the better agencies than!

Lucky I had all you guys on allnurses to help me make the best decision!

suzanne4, RN · May 20, 2007

OUCH! That's worse than the agency I was going to go with. I based my estimate on what the agency had offered me compared to what the hospital offered direct hire. I guess I had at least been with one of the better agencies than!
Lucky I had all you guys on allnurses to help me make the best decision!

It is not a point of which is a better agency, it is that they have expenses to pay. And several of them have offices outside of the US, so someone has to pay for them. Especially we see it with the agencies that are operating out of the Philippines. And then if you are dealing with the agency that is doing the placement, or selling the nurse to the highest bidder, and that could be another agency. So there are now several with their hands out. There are some excellent placement agencies out there, that do not take anything from the nurse, and all costs are paid by the nurse. And they get paid 100% by the facility. I do not like this double dipping. In India, they make the nurse pay a bond, and they can be $20,000 before they can leave their country, and I have yet to see any of them get it returned when they complete their contract. This goes to the recruiters............and I do not like it. It is not necessary. My feeling is that if the agency is really doing a good job, then they would not have issues with nurses wanting to leave. They would follow up with the nurse, and return calls that the nurse makes to them, etc. But many do not. And there are recruiters that make promises that are never included in the contract, and therefore they do not exist.

But all of that is another book in itself.