Breach of Contract

[tim123]

They pretty much are concluding that the outsourcer is an associated company - the contract is worded as below:

Throughout the Assignment Period and for a period of 4 months afterwards the Contractor will not and will procure that the Personnel will not provide services similar to the Services or any information technology related services in any capacity either directly or indirectly to the Client (or to any of the Client’s subsidiary or associate companies in respect of which it provided Services during the Assignment Period), other than with the written consent of the Company.

I'm not into legal lingo but could I argue that this is to wide to be enforced?

No, they are concluding that the outsourcer is 'supplied indirectly' (which legally is exactly what it is).

And it looks to me that the clause has been narrowed down to the absolute minimum that could be useful:

Only 4 months.
Only applies to performing work similar to before.
Only applies to the company or associated companies that you actually supplied a service to.

How much narrower do you really think it could go?

tim

[ASB]

What I was interested in is how the wording on the clause would be interpreted legally as it seems to cover a wide spectrum and I was hoping someone could definitively say that it would be deemed as a restraint of trade

It is quite cleary a restraint. The question is whether it is a legally enforecable. As tim123 pointed out it is pretty narrow. This is generally a key thing with restriants - they are all or nothing when it comes to court thus they have to drafted fairly narrowly in order to have any chance of success.

I personally suspect that in normal circumstances this clause may well be deemed reasonable, and thus enforceable.

But you are not in normal times. Given what you have said it appears that the agency no longer have commerical interests to protect. Courts generally take a dim view of restraints which prevent people earning a living. You did not instigate this. I think it is highly unlikely that it would be upheld.

Personally I would now just write back to them formally telling them to bugger off. I would take informal (i.e. cheap!) advice from our commerical solicitors and await developments. Should the writ arrive I'd take formal advice, assess chances of sucess and think or something to counter cliam for.

[fzbucks]

Breach of contract

After a few months of being quiet - the old agency sent me a demand for their calculated loss of £3000 which must be paid by the 25th July 2007. In the event of me not paying it by then they shall commence county court proceedings.



If I do end up paying them anything it shall be a large bag of small denomination coinage spilled out onto their reception floor!

[malvolio]

After a few months of being quiet - the old agency sent me a demand for their calculated loss of £3000 which must be paid by the 25th July 2007. In the event of me not paying it by then they shall commence county court proceedings.



If I do end up paying them anything it shall be a large bag of small denomination coinage spilled out onto their reception floor!

Three grand - for four months work? Even at 20% margin, that would put you on £750 a day. Seems a touch excessive to me....

[fzbucks]

Three grand - for four months work? Even at 20% margin, that would put you on £750 a day. Seems a touch excessive to me....

I wish £750 per day!!

I was on a lower rate with them, when I got the new post it was a higher rate than the old position, still not quite £750 per day though.

For what they are asking I think it would be easier just to pay them off and never have anything to do with them again, anything I do pay will be in a large money back full of coins - how do I go about getting 3,000 £1.00 coins?

[Old Greg]

I wish £750 per day!!

I was on a lower rate with them, when I got the new post it was a higher rate than the old position, still not quite £750 per day though.

For what they are asking I think it would be easier just to pay them off and never have anything to do with them again, anything I do pay will be in a large money back full of coins - how do I go about getting 3,000 £1.00 coins?

Don't know, but drop them in pig slurry first and scoop 'em back out into a bin liner.

[malvolio]

I wish £750 per day!!

I was on a lower rate with them, when I got the new post it was a higher rate than the old position, still not quite £750 per day though.

For what they are asking I think it would be easier just to pay them off and never have anything to do with them again, anything I do pay will be in a large money back full of coins - how do I go about getting 3,000 £1.00 coins?

Nope, make them a counter offer, based at 15% of your rate for four months. If they are then unreasonable about it, see them in court and you can use their refusal to accept a commercially valid settlement agaisnt them

[BA to the Stars]

I wish £750 per day!!

I was on a lower rate with them, when I got the new post it was a higher rate than the old position, still not quite £750 per day though.

For what they are asking I think it would be easier just to pay them off and never have anything to do with them again, anything I do pay will be in a large money back full of coins - how do I go about getting 3,000 £1.00 coins?

Tempting as it is, they could refuse to accept settlement in £1 coins, as above a certain amount it ceases to be legal tender (£20 I seem to recall). This applies to all coinage.

[Bluebird]

After a few months of being quiet - the old agency sent me a demand for their calculated loss of £3000 which must be paid by the 25th July 2007. In the event of me not paying it by then they shall commence county court proceedings.



If I do end up paying them anything it shall be a large bag of small denomination coinage spilled out onto their reception floor!

surely they need to give you 28 days to pay as per their invoices.

I would reply that you need 28 days to consult with your companies legal advsiors and you will get back to them within that timescale - try and string it out as long as possible.

Then in a months time, make the counter offer say £1500, less your legal and administration costs, say £950.

When they reply, then say you need to consult with your legal team again..

[fzbucks]

surely they need to give you 28 days to pay as per their invoices.

I would reply that you need 28 days to consult with your companies legal advsiors and you will get back to them within that timescale - try and string it out as long as possible.

Then in a months time, make the counter offer say £1500, less your legal and administration costs, say £950.

When they reply, then say you need to consult with your legal team again..

I've prepared a letter to send out today by recorded delivery, basically asking them to provide a breakdown and explanation of their losses before myco or it's personnel decide on whether to accept or decline liablity for these losses.

think i might just end up going to court - as far as I am concerned, the contract was breached as I did work for an associated (outsourcing) company at the clients site, however, I can't see how they can say that my doing this has caused them a loss - the contract was cancelled by the client and I subsequently too a position with the outsourcing provider (after 3 whole days on the bench). they are also unable to provide contractors to the company I am contracting to so I believe my actions haven't caused them any financial loss - honest guv.