Possible contract breach, any help appreciated!

**malvolio** · 8 February 2007, 12:14

TRicky one. The contract between YourCo and the Agency is not determined by the lack of a contract betwen Agency and Client. You might reasonably argue that since the agency has failed to close a deal with the client that a handcuff clause cannot be used to prevent you continuing to work for the client since the agency has no interest in the client (and never did have)

However if you could show that the agency's negligence has led to you losing the contract (again, arguable both ways) then they have breached that contract and you can ignore it.

You need professional advice on the contractual issue. If you were in the PCG, I'd say call their legal helpline, otherwise have a chat with a solicitor. A more effective way might be to get the client to agree to take you direct and for them to tell the agency any handcuff is inapplicable: it all depends who you have the better relationship with, and I'd guess that was the client!

**[email protected]** · 8 February 2007, 12:15

Originally posted by Pete Cullen

Here’s a scenario I’d like to run by everyone if that’s alright.

I’m currently on my first contract which started last July and was extended at the end of December for a further six months. I have a limited company which has a contract with the agency in question that found me the post. All the time during the first six months there was a dispute between the agency and the client I am currently on site working for over some of the finer details of the contract so no contract existed between them.
At Chrismas I was told this had been resolved and everything was now fine. Yesterday I was informed this is not the case and there is STILL no contract between the agency and the client.

Despite wanting to keep me on site, the clients contract department are now saying as there is no contract with the agency they may put a halt to my contract and I would be out ASAP. There has been talk about the client employing my company directly but, as per normal there is a clause in my agency contract saying I will not work for the client for 12 months after the end of the contract.

Would this put the agency in breach of contract with me, as I have a signed contract with them giving me six more months work? It’s all a bit of a mess right now and I would appreciate any help anyone can give me!

Thanks

couple of questions]

1. Who is paying you at the moment?
2. Who told you the issue was resolved?

stu

**Pete Cullen** · 8 February 2007, 12:21

The agency pays me and the client is paying the agency in the usual style. Everything has continued as normal while they argue the contract. I *think* the agency themselves told me that everything was sorted. My memory is slightly hazy but I'm sure they did.

malvolio, quite right I have the better relationship with the client for sure! I think unless things magically resolve themselves (which I suspect they will not) then I'll be taking some legal advice. Will have to see what happens.

Thankyou both for your replies.

**boxman** · 8 February 2007, 12:36

I would speak to the agency and ask them if they're prepared to waive the clause regarding a direct approach to the client from yourco. In the circumstances they might agree, alternatively you may wish to offer them a financial settlement.

It all depends how much you want to stay working with the client. As this is your first contract this is good experience of life in the real world! You may of course prefer to negotiate a deal to leave the contract early and move on...

**The Lone Gunman** · 8 February 2007, 12:37

I would suggest the handcuff clause is valid. The agent did introduce you and is therefore entitled to his cut should you go direct.

If you are opted in then you may be able to use that as a lever to break away.

As ever. I am not qualified to give this opinion. Seek legal advice.

**tim123** · 8 February 2007, 13:47

Originally posted by Pete Cullen

Here’s a scenario I’d like to run by everyone if that’s alright.

I’m currently on my first contract which started last July and was extended at the end of December for a further six months. I have a limited company which has a contract with the agency in question that found me the post. All the time during the first six months there was a dispute between the agency and the client I am currently on site working for over some of the finer details of the contract so no contract existed between them.
At Chrismas I was told this had been resolved and everything was now fine. Yesterday I was informed this is not the case and there is STILL no contract between the agency and the client.

If this were to get the court, the above statement would be laughed at by the judge. The fact that the client let you on site, means that thet MUST be a contract between the client and the agency. It will be the set of terms that were presented to the client that preceeded the date that you started.

Just because this isn't the contract terms that the client might like and that they were attempting to negotiate a change, does not mean that there isn't a contract.

tim

**Pete Cullen** · 8 February 2007, 14:30

Apparently not, on my first day I nearly had to go home because there was no contract in place but a few phone calls allowed me to stay on because the niggles would be ironed out that week. But I have been told that by signing and agreeing timesheets then the client is accepting terms even though there is no actual signed contract.

I'm on the way to getting this resolved now, hopefully for the better. As with all situations it's a little bit six of one, half a dozen of the other.
Live and learn! I'll be joining the PCG after this for sure.

Thanks to everyone who has replied with advice, it's greatly appreciated guys!

Also, I wanted to give particular thanks to Stuart from ITWorks and his colleagues for their very helpful and free advice too. They told me stuff that a solicitor would have charged through the nose for, so I'm very grateful, cheers guys!

**[email protected]** · 8 February 2007, 15:26

hope you get it sorted Pete

Stuart

**boredsenseless** · 8 February 2007, 15:49

Originally posted by Pete Cullen

Also, I wanted to give particular thanks to Stuart from ITWorks and his colleagues for their very helpful and free advice too. They told me stuff that a solicitor would have charged through the nose for, so I'm very grateful, cheers guys!

Am I just being cynical or is this one of the best constructed SPAMS for a long time.

I could be wrong and it could just be someone helping someone out, if it is then good on you.

-- Oh and bear in mind that if a solicitor had told you it, and charged you for it, and it turned out to be incorrect you have redress in law, where as when a recruiter gives you some'advice' for free you don't.

Possible contract breach, any help appreciated!