Conflict with ex agency

[harry7476]

Hi All

I am going to start a new contract with my ex employers six months after finishing the contract. This new contract has been negotiated directly with the client (not via any agency). Just noticed a clause from my ex agency in my earlier contract. Am I going to be in breach with my ex agency? Can I just open a new ltd and ignore the clause?

The Supplier shall and shall procure that the Representative shall
(a) not during the Contract Term or thereafter for a period equivalent to the period of this agreement or, where there has been more than one engagement between the Supplier and Agency within the last two years, for the total period of all engagements within the last two years with the relevant Hirer or End User (but not being less than 6 months nor more than 12 months) either directly or indirectly (whether under a contract of services or for services or through any third party) provide any services to the Hirer or End User in any capacity except by contract through the Agency unless the Supplier shall first have paid to the Agency a fee of 20% of the total remuneration including the value of benefits attributed by the HM Revenue & Customs agreed to be paid or provided by the Hirer or End User for the relevant period of provision of such services (but not exceeding 12 months)
plus VAT

[northernladuk]

Your ex employer or your ex client?

Opening a new LTD just to get round a handcuff won't work legally.

6 months is more than long enough. A 12 month clause won't stand up in court because it's not fair. Is your client still using the agency. If not then you are in the clear. The agent has to prove he's going to lose money if you go direct. If he's not doing business with the client he can't claim a loss. Sorted.

[SimonMac]

Your ex employer or your ex client?

Opening a new LTD just to get round a handcuff won't work legally.

6 months is more than long enough. A 12 month clause won't stand up in court because it's not fair. Is your client still using the agency. If not then you are in the clear. The agent has to prove he's going to lose money if you go direct. If he's not doing business with the client he can't claim a loss. Sorted.

WHS

[harry7476]

Clarification

Your ex employer or your ex client?

Opening a new LTD just to get round a handcuff won't work legally.

6 months is more than long enough. A 12 month clause won't stand up in court because it's not fair. Is your client still using the agency. If not then you are in the clear. The agent has to prove he's going to lose money if you go direct. If he's not doing business with the client he can't claim a loss. Sorted.

Apologies meant client instead of ex-employer
Yes the agency is still in business with the client

Additional details:
Contract with agency was for 6 months
Now there has been a gap of 6 months after lapse of that contract.

Does this all mean I can’t still take up the contract?

[SueEllen]

Apologies meant client instead of ex-employer
Yes the agency is still in business with the client

Additional details:
Contract with agency was for 6 months
Now there has been a gap of 6 months after lapse of that contract.

Does this all mean I can’t still take up the contract?

I was actually trying to quote you - so the thanks will be removed later - read your contract term. If you don't understand them get legal advice.

The advice NLUK and others have given you is worth exactly what you have paid for it.

[northernladuk]

I think you should be OK. 6 months is more than fair. The problem you've got is the the agency (if they find out) could moan to the client and a risk averse client might not want to get involved and decide to drop you. It would be very disappointing if they did but I think it's unlikely. The client should really turn round to the agency and explain its a one off and if they want to keep doing business they drop the issue.

Is your client aware you have a handcuff? Are they willing to strong arm the agent if need be?

[LondonManc]

I think you should be OK. 6 months is more than fair. The problem you've got is the the agency (if they find out) could moan to the client and a risk averse client might not want to get involved and decide to drop you. It would be very disappointing if they did but I think it's unlikely. The client should really turn round to the agency and explain its a one off and if they want to keep doing business they drop the issue.

Is your client aware you have a handcuff? Are they willing to strong arm the agent if need be?

Most of my old hiring managers would tell the agent to do one, especially if they want to remain on the PSL. I guess it depends how far up the food chain the hiring manager is.

[NigelJK]

OK, surprised none of the seasoned contractors here have pointed you in the correct direction.

IF you did NOT opt out, the handcuffs are max 12 weeks BY LAW, 8 is the recommended.
IF you did you'd have to fight your corner. You will find the Agency will attack the 'Employer' first, so be prepared.

[northernladuk]

OK, surprised none of the seasoned contractors here have pointed you in the correct direction.

IF you did NOT opt out, the handcuffs are max 12 weeks BY LAW, 8 is the recommended.
IF you did you'd have to fight your corner. You will find the Agency will attack the 'Employer' first, so be prepared.

I'm not aware that the Opt in/out has had an impact on any handcuff problem we've encountered to date. It's so badly understood and managed it's going to next to useless to fall back on it. Better things to try first.

[NigelJK]

To be fair this needs moving to the proper place so that the usual suspects don't highjack it.

TL;DR; but looks to have some decent advice in similar circumstances: Restrictive covenants