"restricted covenant" might stop me going direct to client?

[TheMrs]

Firstly, I'm in oil and gas, so please no talk of "just walk" or "tell them to stick it"

Been working through agency for 2 years with Client. I've not been happy with the agency and in particular the fact they will not let me see any part of their contract with the end client. Because of this and because the client is looking to cut costs, we have discussed me going direct so they don't have to pay agency a fee and I don't need to keep worrying that they have some IR35 ridden contract to which I am unwittingly shackled. Everyone else on my project was engaged direct in the first place so there is no precedent to look to.

Buried in my contact with agency, there is a clause stating that if I go direct my company pays a fee and/or the client pays a fee to the agency.

When permie I was aware these clauses were seldom if ever enforced. Anyone experienced from world of contracting?

With thanks

[Pondlife]

Q1) Did you tell the agency that you wanted to "opt out" of the Agency Workers Regulations? Or rather did they give you a form alongside your contract and said "You have to sign this"? If so, when did this happen?

Q2) How big is the fee and how long is the restriction?

Q3) How many other contractors do you think the agency has at client co? Enough to be concerned about damaging their relationship?

[northernladuk]

They were never enforced in permie world as one company can't be bothered suing another company unless there was some direct impact on someone taking IP or something. The loss would be in their main business which is very unlikely. The difference in your situation is that the agent makes money out of you, it's his living, so going direct takes money directly out of his pocket so he is going to move heaven and earth to enforce it. Handcuffs have to be fair and reasonable and loss must be easy to evidence which generally isn't the case in permie land. In contracting the agent will lose daily commission he was due to get so it's black and white. Just cutting the agent out of the loop incurs direct loses so the handcuff is water tight. The agent would be quite happy to completely screw you over and put you out of the gig altogether even if he wasn't going to get another penny.

The client -> agent contract is their business and none of yours. You do not have right to see it so they are quite right to keep it under wraps. It is extremely rare that anyone ever sees the upper contract. If this is the only thing upsetting you about your agent you need to re-think your position. You are getting upset over nothing and potentially getting yourself in a world of trouble just trying to pacify yourself. How about you just accept you can't see it and get on with it?

Are you sure the contract is IR35 ridden? Have you had it reviewed by a professional?

[Sausage Surprise]

Just do it but don't tell the agent

[northernladuk]

Just do it but don't tell the agent

Dunno if this should have sarcasm tags around it but as it reads it's truly awful advice.

[Andy Hallett]

Just do it but don't tell the agent

[NotAllThere]

Until Pondlife's questions are answered, there's really nothing more to be said.