Non-Compete\Restrictive Covenant - 2 agencies

[topper]

Hi,

Just want peoples thoughts on this really, I contract (LTD) through an Agency, they essentially sell me to a Consultancy, who then sell me to Client............................Don't Ask!! :-\

Basically seems like Consultancy and Client are falling out.............mainly about price (not just for me but others).

Client wants me for 9 months work, consultancy not budging on price or stepping aside so I can go direct.

...............But, since my contract is with Agency and not Consultancy, and if Agency are happy to step aside, will there be a problem going direct? My clause states.........

4.9 If before the first day set out in the Assignment Details or during the course of an
Assignment or within the Relevant Period the Client wishes to employ the Consultant direct
or through another employment business, the Consultant acknowledges that <removed> will
be entitled to charge the Client Transfer and Introduction Fees. In addition <removed> will be
entitled to charge a fee to the Client if the Client introduces the Consultant to a third party
who subsequently engages the Consultant before the first day set out in the Assignment
Details or within the Relevant Period.

“Relevant Period” means period during the Assignment and for six (6) months from the day
after the Consultant was last supplied by <Removed> to the Client.

Obviously in the above, the "Client" is essentially the Consultancy and not the actual end client receiving the work.

Cheers
Topper

[WordIsBond]

Obviously in the above, the "Client" is essentially the Consultancy and not the actual end client receiving the work.

I'm not a lawyer, but it looks to me like you can work direct with end client without any fallout. You have signed nothing that says you can't.

There may be something in the agent/consultancy contract that is problematic, but that isn't your problem and you didn't sign it (presumably).

There may be something in the consultancy / end client that is problematic, but if your end client doesn't care or feels they can handle it, you have no issue. It's an issue for them alone and they can handle it by blowing off the consultancy, or paying them off, or just not telling them and hoping they never find out, or whatever.

You should be prepared for the consultancy / end client legal situation to make the whole thing go pear-shaped, of course. The guy you work with may be fine with you going direct but once legal gets involved it could all change. But you and YourCo look like they are in the clear.

Somebody at the consultancy didn't think that one through very well when they hired someone through an agency. I bet they start requiring agents to include tighter language referring to the end client if they do this again. LOL.

The thing about it is you aren't hurting the agency, either. It's the consultancy that gets "hurt" this time. I'm shedding many tears over that just now.

[topper]

Ha ha, I shed no tear over any Agency or Consultancy, they've had their pound of flesh already.

The client is already having his lawyers look at their contract agreements, but as you say I'm not too worried about that, I just want to be comfortable (as much as you can be in this) that me and my LTD are OK.

It may resolve itself, I have a feeling it's Mexican standoff currently and we're just waiting for the first side to blink!