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Question about restrictive covenants

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    Question about restrictive covenants

    A friend of mine put me in touch with a consultancy last week, and I had an interview for a role. When discussing terms, they said that although I had gone direct, that did not take on direct contractors, and I had to invoice via an Agency on their PSL, who would take a 3% margin. I didnt end up getting the role.

    This week I have had an interview with the same consultancy, via a different agency, and also a different end client. I have discussed with this agency that I will not be opting out of the AWR, and they have accepted this.

    There is however a restrictive covenant in the contract preventing me from going direct to the consultancy, or this specific end client for a period of 12 months.

    It is only a short contract (2 months) so I am intending to go ahead anyway, as I do not want to miss out on this particular role. However, would this clause be enforceable? I have read that the AWR restricts these clauses to a maximum of 8 weeks, but cannot seem to actually find where I read that. It would be a shame to have to comply with this in the future when I already have a direct relationship with the consultancy.

    #2
    ...

    Originally posted by kempc23 View Post
    A friend of mine put me in touch with a consultancy last week, and I had an interview for a role. When discussing terms, they said that although I had gone direct, that did not take on direct contractors, and I had to invoice via an Agency on their PSL, who would take a 3% margin. I didnt end up getting the role.

    This week I have had an interview with the same consultancy, via a different agency, and also a different end client. I have discussed with this agency that I will not be opting out of the AWR, and they have accepted this.

    There is however a restrictive covenant in the contract preventing me from going direct to the consultancy, or this specific end client for a period of 12 months.

    It is only a short contract (2 months) so I am intending to go ahead anyway, as I do not want to miss out on this particular role. However, would this clause be enforceable? I have read that the AWR restricts these clauses to a maximum of 8 weeks, but cannot seem to actually find where I read that. It would be a shame to have to comply with this in the future when I already have a direct relationship with the consultancy.
    Your issue has nothing to do with the AWR. It's the Conduct of Employment Agencies legislation that you need to both understand and not opt out of.

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      #3
      Yes, sorry, that is what I was talking about.

      Comment


        #4
        Even though your post is incredibly difficult to understand and I wouldn't worry about it. Apply, get the gig, do the work and happy days.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          I don't see the problem.

          Consultancy won't entertain taking you on directly, only via an agency on their PSL anyway. Right now you take the gig. Get stuck in and then when you're up for renewal after kicking ass for x months you work on getting the agency margin down to the 3% that you know is possible.

          There will be clauses between agency and consultancy stopping you going direct anyway.

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