Going direct with client

[WTFH]

Neither me nor end client have signed any contract with Agency so how any handcuff clause will apply? How would agency protect their business interest in this case?

You gave the flow of the contracts in your first post. The agency has signed a contract with the IT service provider, and the IT service provider will have signed a contract with the end client.

[MollyDolly]

You gave the flow of the contracts in your first post. The agency has signed a contract with the IT service provider, and the IT service provider will have signed a contract with the end client.

The IT support provider should have a contract with End Client but same IT Support Provider has confirmed to end client that they will let me go direct with End Client for free. The End Client cares only what IT Support Provider agrees with them and not about the contract between agency and IT support Provider as it’s upto IT Support Provider to sort out with Agency.

[WTFH]

The IT support provider should have a contract with End Client but same IT Support Provider has confirmed to end client that they will let me go direct with End Client for free. The End Client cares only what IT Support Provider agrees with them and not about the contract between agency and IT support Provider as it’s upto IT Support Provider to sort out with Agency.

Have you discussed this with the IT Support provider?
Have you discussed it with the umbrella and the agency?
Have you got written confirmation from each of the businesses in the chain that there is no clause which prevents you from going direct?

While you might say that it's up to the IT Support Provider to sort it out with the agency, if there are clauses in the contracts, they will come to you looking for their lost revenue.

[cojak]

Why do you think that end client will not accept me using umbrella?
Also, would I have any risk if I open a LTD company and sign outside IR35 contract with end client?

Because it’s outside of the norm. End clients either ban PSCs/put contractors inside and therefore use umbrellas or offer outside and expect to work with Ltds.

And as for risk, HMRC will see that you’ve moved from umbrella to Ltd, and as they are trying to get contractors to go from Ltd to umbrella they may well take an interest in your change of circumstance.

Anyway, I feel that we are beginning to repeat ourselves here - I would advise that you go back and reread this thread.

[malvolio]

Neither me nor end client have signed any contract with Agency so how any handcuff clause will apply? How would agency protect their business interest in this case?

Jesus. You contract does not exist in a vacuum. Somewhere up the line will be a contract between the agency and the client(s) that covers off losing their commission. Your contract will be within its scope.

And if it goes to IR35 (old or new) all those intermediate contracts will be ignored anyway. It's your relationship with the end client that will matter.

[Lance]

The IT support provider should have a contract with End Client but same IT Support Provider has confirmed to end client that they will let me go direct with End Client for free. The End Client cares only what IT Support Provider agrees with them and not about the contract between agency and IT support Provider as it’s upto IT Support Provider to sort out with Agency.

It is entirely possible that the agency kicks up so much of a stink with the IT Support Provider that your move to the end client becomes impossible.
When you say the IT Support Provider is happy for you to direct, is that verbal? Or in writing? And if the latter does it align with/agree with any contractual terms the IT Support Provider has with the agency and/or the client?

[northernladuk]

Neither me nor end client have signed any contract with Agency so how any handcuff clause will apply? How would agency protect their business interest in this case?

The contract will be between the agent and the umbrella. It's a chain with a contract between each party. Client <contract> Agent <contract> Umbrella <contract> you.

I see there is some other notes about the situation after you posted that which I haven't read but the above is generally how it works.

I can't believe the client hasn't signed a contract or has some kind of memorandum of understanding. How do you know this as it isn't your business?

[MollyDolly]

It is entirely possible that the agency kicks up so much of a stink with the IT Support Provider that your move to the end client becomes impossible.
When you say the IT Support Provider is happy for you to direct, is that verbal? Or in writing? And if the latter does it align with/agree with any contractual terms the IT Support Provider has with the agency and/or the client?

IT Support Provider has given it in writing to End Client. I do not care what the Agency does with IT Support Provider as its a matter between those two parties. As long as End Client is ready to take me direct (via my LTD or a new Umbrella) why should I worry about Agency/ IT Support Provider? If anyone should be worried about the terms of contract between Agency, IT Suppport Provider and End Clinet should be End Client and not me.

How is it different if tomorrow I would have joined let's say ABCXYG Consultancy Limited (hypothetical new IT Consultancy) as Permanent Employee who then supply me to End Client? How can Agency or IT Support Provider stop this?

[MollyDolly]

The contract will be between the agent and the umbrella. It's a chain with a contract between each party. Client Agent Umbrella you.

I see there is some other notes about the situation after you posted that which I haven't read but the above is generally how it works.

I can't believe the client hasn't signed a contract or has some kind of memorandum of understanding. How do you know this as it isn't your business?

There is a contract between Umbrella and Agency but I am not abide by their contract as I am only abide by my contract with Umbrella.
Client has contract with IT Support Provider and not Agency. Even if there is any contract between Agency and Client (not possible but for arguments sake lets say there is any such contract), why should I worry about their contract? Its End Client who should worry about this and not me. End Client is ready to work direct with me as they have got it in written from IT Support Provider.

I am just trying to find out how Agency can stop me taking this route as they are the only one who has not been consulted yet by me or End Client and since neither of us have a contract with Agency so we have no need to consult with Agency.

[Lance]

I am just trying to find out how Agency can stop me taking this route as they are the only one who has not been consulted yet by me or End Client and since neither of us have a contract with Agency so we have no need to consult with Agency.

They cannot stop you as slavery was abolished over 200 years ago.
However they could attempt to sue the IT provider for lost revenue.
Let's say that there is £500 a day, for a 3 month contract, that is £30k.

Are the IT support provider willing to take that risk?
Has the letter that's been written been through the IT Support provider's legal team?

There's lots that can go wrong. None of it may go wrong.
The fact you're querying suggest you're not sure. You could end up with nothing.
This is all about risk.