Originally posted by Patek
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You've already got the client on side, it seems, though I'd be wary of accepting at face value what one person says unless they have detailed knowledge of the contract between client and agency, and between agency and contractor. I would be very surprised if there was nothing in either (or both) contracts which prevents you from just jumping from one agency to another, regardless of what you or the client want to happen. If there wasn't, then there would be perpetual calls from agents to contractors and clients saying "I can get you / save you £x a day"
Without knowing the terms between your company and the agent around going direct / changing agency, everything here is speculation - but you could check the contract and see what it says. You'll never see what the contract between the client and the agent says around them using a different agency without paying the current one some form of fee, though - you could ask the client and see what it says, but I would be surprised if they will show it to you, citing commercial confidence.
If you didn't opt out of the agency regulations, in writing, before being introduced to the client, then you are by default inside the regulations. This means that you can change agency or go direct 8 weeks after the end of the contract or 14 weeks after the start of your engagement (whichever is later) - so you could leave and in a couple of months go direct / elsewhere with no comeback (again, provided that there isn't anything between client and agency preventing this).
If you are really unhappy about it all, your best bet may be to give notice and look for something else. If you give notice then that might push the agency into action and you'll get an increase, but it may not. You'll also need to review that contract to see what notice you are allowed to give to terminate.
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