Translation for several subsidiaries of a holding company assigned by different translation firms
Thread poster: jyuan_us
jyuan_us
jyuan_us  Identity Verified
United States
Local time: 06:42
Member (2005)
English to Chinese
+ ...
Oct 28, 2023

The end-client of one of my translation agencies was acquired by another company. (Hereinafter, let's call the acquirer the holding company, and the acquiree "the new subsidiary.") The new subsidiary has been operating on its own in most aspects. My agency was able to keep a multiple year translation contract with the new subsidiary, but it didn't get any additional translation business from the headquarter of the holding company, nor from any of its dozens of other subsidiaries.

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The end-client of one of my translation agencies was acquired by another company. (Hereinafter, let's call the acquirer the holding company, and the acquiree "the new subsidiary.") The new subsidiary has been operating on its own in most aspects. My agency was able to keep a multiple year translation contract with the new subsidiary, but it didn't get any additional translation business from the headquarter of the holding company, nor from any of its dozens of other subsidiaries.

Now, several other translation firms have been trying to assign me translation tasks under their contracts with some of the other subsidiaries of the holding company. I have not accepted any of their offers yet, because I don't know if working with them as a freelance translator would be considered as a violation of the non-compete term in the contract I signed with my current translation agency. I couldn't get any information that is clear enough to get my doubt resolved.

What would be your opinions?

[Edited at 2023-10-28 03:33 GMT]
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Maria Teresa Borges de Almeida
Maria Teresa Borges de Almeida  Identity Verified
Portugal
Local time: 11:42
Member (2007)
English to Portuguese
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@jyuan Oct 28, 2023

The matter seems complex, I would consult a lawyer…

 
Thomas T. Frost
Thomas T. Frost  Identity Verified
Portugal
Local time: 11:42
Danish to English
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Not a problem Oct 28, 2023

You have a contract with the new subsidiary. I don't see how that should ban you from working for the holding company or any of its subsidiaries through another agency, even if it's the same subsidiary. It's not you who has approached the end client directly.

If another agency has a contract with any of them, it doesn't change anything for your present agency whether it's you or someone else that carries out the work.

What most NDAs say you cannot do is solicit work dir
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You have a contract with the new subsidiary. I don't see how that should ban you from working for the holding company or any of its subsidiaries through another agency, even if it's the same subsidiary. It's not you who has approached the end client directly.

If another agency has a contract with any of them, it doesn't change anything for your present agency whether it's you or someone else that carries out the work.

What most NDAs say you cannot do is solicit work directly from the new subsidiary.

But do read the NDA just to be sure.
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Christopher Schröder
Lingua 5B
Kevin Fulton
Jorge Payan
Renée van Bijsterveld
 
Samuel Murray
Samuel Murray  Identity Verified
Netherlands
Local time: 12:42
Member (2006)
English to Afrikaans
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@jyuan_us Oct 29, 2023

jyuan_us wrote:
Now, several other translation firms have been trying to assign me translation tasks under their contracts with some of the other subsidiaries of the holding company.

Odds are that if you do quote for such jobs, eventually it'll end up being a job shared by multiple subsidiaries, in which case you'll end up underbidding your existing client that you have such a good relationship with, and there is no way of knowing which of the jobs for other subsidiaries are jobs that were co-commissioned with your subsidiary. It's a no-win situation, though, as it may be that the other agencies eventually win the bulk of the work, in which case you're missing out because you did not bid even though you were originally the preferred provider. What I would do is to quote for such jobs, but raise your rate for those agencies so that the risk of underbidding your current agency is somewhat reduced.

I have not accepted any of their offers yet, because I don't know if working with them as a freelance translator would be considered as a violation of the non-compete term in the contract I signed with my current translation agency.

I don't think it would, unless your NDA mentions end-clients (but even then, each subsidiary can usually be regarded as a separate end-client -- heck, different departments within a single company may be regarded as separate end-clients if the contact details of the accounting departments are different).


 


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Translation for several subsidiaries of a holding company assigned by different translation firms







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