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Working directly to the client

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    Working directly to the client

    Hi,

    I am currently working for a client as contractor with 2 agencies in the middle, due to IR35 rules have switched to umbrella company and closed my old private limited company.

    If the client offer me a position outside of ir35 can I work directly with them by opening a new private limited company?
    As in my old contract it says can not work directly to the client in next 6months with these lines.
    "Throughout the Assignment Term and for a period of 6 months afterwards the Service Provider will not and will
    procure that the Personnel will not, other than with the written consent of the Company, provide services similar
    to the Services or any information technology related services in any capacity either directly or indirectly to:
    11.1.1 the Client;
    11.1.2 to any of the Client’s subsidiary or associate companies in respect of which it provided Services during
    the Assignment Term; and
    11.1.3 to any Customer of the Client with whom the Service Provider has had direct dealings with (including in
    the provision of Services) during the Assignment."

    These rules are bound to old assignement signed between company and agency, are these still apply for new company? As the current umbrella company contract doesn't say any of these.

    Any advise appreciated.
    Thanks.

    #2
    I assume this is a PS gig. My first question is will the client take you on directly? Has this been offered or are you just wondering about the situation? I'm a little surprised they will take you direct if they already have agencies in the loop. I though a PS might stick to CL1, NMNC processes so direct isn't an option.

    So is the client offering you to go direct or are you just playing with the idea?
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      #3
      I was in a similar situation without the IR35 bit.

      I found work after a hiatus with the same company I had worked with previously, we came to an agreement, but as I had worked for them through an agency that agency wanted a "finders fee" from the company I was going to work for, which I thought was a bit rich as I found the work, not them. I also put a few more people on the agencies books as well so I won't be doing that again.

      So this was paid. I now work direct, I'm still "cheaper" than what they were paying me before plus agency fees. So it was the right move.

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        #4
        What does the contract between client and old agency say?
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          #5
          do you have a contract with your umbrella or with the agency as well? And I mean a piece paper with your name, signature and the agency's name.

          If just the umbrella then employment law is key. It's very difficult to enforce for the umbrella but looking at the clauses they are quite narrow so they probably do have a case to pursue. It will cost you at the minimum £1500 in legal fees and that assumes that the umbrella give up after a few letters.

          If the contract is with the agency then you will need proper legal advice as employment law counts less. And you should maybe consider using the agency for your LTD to avoid the legal pain.
          See You Next Tuesday

          Comment


            #6
            Originally posted by Lance View Post
            do you have a contract with your umbrella or with the agency as well? And I mean a piece paper with your name, signature and the agency's name.

            If just the umbrella then employment law is key. It's very difficult to enforce for the umbrella but looking at the clauses they are quite narrow so they probably do have a case to pursue. It will cost you at the minimum £1500 in legal fees and that assumes that the umbrella give up after a few letters.

            If the contract is with the agency then you will need proper legal advice as employment law counts less. And you should maybe consider using the agency for your LTD to avoid the legal pain.
            I have contract with umbrella company not with agency, its a standard employee contract issued to me under my name.
            But with the client I want to take offer on a different company does the clause still apply to new company or individual(me as director) or company(which is closed)?

            Comment


              #7
              Originally posted by TheFaQQer View Post
              What does the contract between client and old agency say?
              I dont know what contract they have with client but this agency doesnt have contract direct with client but there is another agency in between can call it main one and sub agencies.

              Comment

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