Joining client advice

[alfiearsenal]

Hi All,

I am new to this site and hope someone can help me! Apologies in advance for the length of the following.

The situation is:

I have been working for an IT Consultancy for 6 years and with my current client for 3. My company has an arrangement with my client where they supply FTE Consultants directly in the usual manner or, if the particular expertise isn't within the firm, recruits contractors from industry and supplies them to the client as subcontractors (they still have my company's tech equipment etc but charge my company their day rate and the company adds a management fee and invoices the client). The FTE employees are generally more expensive to the client than subcontractors because of the associated costs. However, I believe my company earns more money on the contractors because the management fee > the profit they make on me.

My client is international in nature and has asked me to move to Japan to work in a role that is slightly different to my current one. They raised the topic of me leaving my current company and then becoming a subcontractor and recontracting with them via said company. I believe this could be attractive to all parties for a number of reasons:

Client - I cost them less than I would do as an FTE
Current company - They don't have to pay me a salary / they make more profit on me
Me - I can set my own day rate and ultimately earn a lot more money / I can work in a more flexible fashion

Moreover, my current company doesn't have an office in Japan and my current role is coming to an end. If they want me to continue working and earning money for them then ultimately we need to find a way that I can get to Japan (if I move there in my current capacity would they need to pay my accommodation etc as they don't have an office?). Finally, I don't want to return to my company and work for a different client going forward - I would rather leave.

The problem is that in my contract with my company there is a clause that I originally signed up to saying that I cannot join a client for 1 year. However, I am hoping that if there is an option between some money (me staying as a contractor) or no money (me leaving altogether) they would choose the former.

I suppose then my question is, what is the best way of going about this? Does anyone out there have any experience of something similar?

I am nervous that this might all get a bit political so would appreciate advice before I start these formal conversations.

Thanks in advance,
A

[sal]

Synopsis:

Alfie --> Alfie Ltd --> Consultancy --> End Client

Current package of work is finished soon.

End Client and Alfie Ltd want to contract directly for a new package of work.

Alfie Ltd / Consultancy contract has a handcuff clause restricting direct work for End Client.

How does Alfie best manage this?

If i read the OP correctly its:

Alfie employee of Consultancy --> End Client

And the desire is to go

Alfie --> Alfie Ltd --> Consultancy --> End Client

In any case probably the most important point is that you are going to move to Japan, which means that the traditional UK contracting model might not apply and your tax liability will be completely different so you have to factor this in your daily rate. You might be better off as an employee of the end client.

Regarding the handcuff clause - speak with your current employer and explain the situation, if they don't have presence in Japan it will be too much of a hassle for them to start one just for you and they might be happy to wave the handcuff clause for you if that is going to keep the end client happy, or for a certain price which might be well worth it in the long run.

[Contreras]

If i read the OP correctly its:

Alfie employee of Consultancy --> End Client

You're right. Sorry.

And the desire is to go

Alfie --> Alfie Ltd --> Consultancy --> End Client

I read it as: Alfie --> Alfie Ltd --> End Client

In any case probably the most important point is that you are going to move to Japan, which means that the traditional UK contracting model might not apply and your tax liability will be completely different so you have to factor this in your daily rate. You might be better off as an employee of the end client.

Regarding the handcuff clause - speak with your current employer and explain the situation, if they don't have presence in Japan it will be too much of a hassle for them to start one just for you and they might be happy to wave the handcuff clause for you if that is going to keep the end client happy, or for a certain price which might be well worth it in the long run.

Good advice.

[BlasterBates]

This sounds complicated. You are going to have to find out about the rules of working in Japan, and if indeed it is possible.

You will almost certainly require some kind of visa.