Restrictive Covenant - Agency & Public Sector Client - Procurement Contract Expired

[readingcontractor]

Hi there,

I'm in the odd position where I've been contracting for about 18 months for a public sector client through an Agency, but the Agency's procurement contract with the public sector client will expire when my current contract ends, and won't be renewed.

However, the client has expressed interest in wanting to keep me on, but I could only do this directly with them in this case. Obviously there is a restrictive covenant in my Agency contract preventing me from going direct for 6 months after I finish the contract - but as I understand it, these types of clauses are supposed to be 'reasonable'. So if I am unable to use the agency for this client anymore due to their procurement contract finishing, is the clause enforceable?

I don't have the exact wording to hand right now, but I can provide it when I'm at home.

Just curious is anyway has been in a similar situation before, or has any insights?

[SueEllen]

6 months is not necessarily unreasonable.

In your case you need your exact contract wording. Why? To see if there are reasons why it is unenforceable.

You also need to be prepared to talk to the procurement/contracts person in that government department. Government departments take people on via frameworks or through agencies, so not directly. So what the client project team may want may not be possible.

Finally you are aware of the 2 year rule on expenses?

[northernladuk]

but as I understand it, these types of clauses are supposed to be 'reasonable'. So if I am unable to use the agency for this client anymore due to their procurement contract finishing, is the clause enforceable?

Correct. I'd say there is no issue here. Just get on as you and the client want to.

How are the client suggesting you engage with them? Not pushing you through GCloud or any other convoluted framework?

+1 to what SE says about 24 month rule

How clued up with IR35 are you? What is the PS bodies determination of the role? Are you inside or outside? If Outside you need to keep your eye on the ball. Time shouldn't be factor in theory but often is. Very easy to be part and parcel 2 years in.

[readingcontractor]

Thanks both for your replies.

6 months is not necessarily unreasonable.

In your case you need your exact contract wording. Why? To see if there are reasons why it is unenforceable.

You also need to be prepared to talk to the procurement/contracts person in that government department. Government departments take people on via frameworks or through agencies, so not directly. So what the client project team may want may not be possible.

Finally you are aware of the 2 year rule on expenses?

6 months is not necessarily unreasonable.

Yes, it wasn't so much the time I was questioning as being unreasonable - more the notion that the procurement contract was not being renewed, and not allowing me to go direct when the agency itself would no longer be able to place me there doesn't seem like it would be reasonable to me.

In your case you need your exact contract wording. Why? To see if there are reasons why it is unenforceable.

Yep understood - I will provide it once I am back in my office.

You also need to be prepared to talk to the procurement/contracts person in that government department. Government departments take people on via frameworks or through agencies, so not directly. So what the client project team may want may not be possible.

Yes this is who I have been liasing with.

Finally you are aware of the 2 year rule on expenses?[

Yep this isn't an issue for me - an increase in daily rate going direct would more than cover any lose of expense claims for me.

How are the client suggesting you engage with them? Not pushing you through GCloud or any other convoluted framework?

To be discussed- I understand it's the Sprint 2 framework? Thought I'm not 100% clear on how this works yet.

How clued up with IR35 are you? What is the PS bodies determination of the role? Are you inside or outside? If Outside you need to keep your eye on the ball. Time shouldn't be factor in theory but often is. Very easy to be part and parcel 2 years in.

I'm outside currently, but fairly confident that this isn't an issue. I have legitimately substituted before, and will continue to do so on some occasions.