Non-competition clause enforceable?

[WorkLifeBalance]

I was working in France as a contractor for 18months and then took a permanent position with the client company where I provided my services. I was working through an Umbrella Company in the UK and signed a contract with them. They handled the contract with the Employment Agency (UK & French based) and signed it.

My contract came to a natural end (after several extensions) and I independently applied for and gained a permanent position in another division of the client company. After the employment agency discovered this (I had thought that the client had informed them before recruiting me), they said there had been a breach of a competition clause in the contract (though they did not say who had breached the contract) - my contract with the Umbrella Company did not include the clause regarding competition - they did not include it into my contract with them.

Now the employment agency is refusing to pay my final month's invoice to the Umbrella Company (and therefore me).

1. Do they have any right to do this?
2. Who is actually breaching the contract in this situation? I am assuming it can't be me if it was not in my contract with the Umbrella Company?
3. The Employment Agency have communicated no more after stating they will not pay the invoice, and I am concerned that based on the conditions of the clause I read, they will pursue me for 100% earnings for the next 12months!

I suspect I may have to obtain legal advice to even know if this is enforceable. Any advice is appreciated!

[SueEllen]

1. If there is no anti-competition clause in the contract then the agency cannot say that.
2. Even if there an anti-competition clause payment of your invoice is a separate issue from the clause.


You need to chase your umbrella company for payment as they are your employer. Legally your employer must chase the agency not you.

However as the umbrella company don't care whether you are paid or not, get them to discharge their duty of getting payment from the agency to you. You need to get a director of the umbrella company to do this in writing. Then follow Dunning to get the money out of the agency. (Google if you don't know what Dunning is.)

The agency will make excuses but ignore them, record what the agency state and continue with chasing them for the debt.

Once you get to the stage of either going to small claims court or getting a debt collection agency in like Safer Collections, the agency should pay up.

BTW if you haven't already done it get a recording app for your mobile phone and record any phone calls the agency make to you. Save the recording elsewhere and transcribe the recording. If you do go down the court route, and the agency has threatened you the judge will want to see this but you aren't allowed to present the actual recordings to the judge without the agency's agreement. The agency will deny the transcripts are correct but that's why you have the recordings as well. The judge cannot listen to the recordings but the fact they exist helps you.

[NotAllThere]

Competition clause is one thing, refusal to pay the invoice is an entirely separate legal issue.

The agency can only sue for actual losses. It would seem to me (I am not a lawyer), the only loss they could have incurred is from lack of commission paid by the client. Therefore they cannot sue you.

Now go and recover the debt. Don't forget to add interest at the legally mandated rate + administration fee.

[TykeMerc]

Competition clause is one thing, refusal to pay the invoice is an entirely separate legal issue.

The agency can only sue for actual losses. It would seem to me (I am not a lawyer), the only loss they could have incurred is from lack of commission paid by the client. Therefore they cannot sue you.

Now go and recover the debt. Don't forget to add interest at the legally mandated rate + administration fee.

What he said.

Pursue the debt, make sure that they know you will take it all the way to court if you have to, they're taking the mickey.