HELP – Working for a Big Client through another agency and “Restraint of Trade”

[XLMonkey]

Not sure that the case is quite that straightforward, dude. These clauses can be enforced on a company to company basis.

But, I do agree on the first point
(a) They would have to prove they have suffered an actual financial loss

In this case, since the OP wasn't offered the opportunity through agent A, it seems unlikely that the courts would accept that there was any business loss involved.

So, the OP could be in technical breach of contract, but that doesn't mean that there would be any penalty to pay.

[2uk]

Hi guys ,

The PCG legal adviser ( seemed like a confident guy ) is saying that He has never heard of what agent B is saying – which is that with BIG clients – you can safely work in separate offices /departments with high degree of confidence that you are safe against “restraint of trade” claims from previous agents.

He also did confirm that being opted-in renders “restraint of trade” unenforceable. ( probably after 8 weeks after project end)

He also suggested that seeking an indemnity from Agent B is an option. ( In my case Agent B told me that he was not going to do that )

So when opted out , "Restraint of trade" is not solely to scarecrow .

[TheFaQQer]

Hi guys ,

The PCG legal adviser ( seemed like a confident guy ) is saying that He has never heard of what agent B is saying – which is that with BIG clients – you can safely work in separate offices /departments with high degree of confidence that you are safe against “restraint of trade” claims from previous agents.

He also did confirm that not being opted-in renders “restraint of trade” unenforceable. ( probably after 8 weeks after project end)

He also suggested that seeking an indemnity from Agent B is an option. ( In my case Agent B told me that he was not going to do that )

So when opted out , "Restraint of trade" is not solely to scarecrow .

What would be interesting would be the PCG opinion of whether they think you would lose if you were sued - it would put an end to the speculation here about whether people should just say "bring it on" as they won't and those that err on the side of caution because they believe that you would lose.

Since you did not opt out, then you can go back direct or through another agency. There may be something to stop the client taking you through a different agency, though - that's something that they would have to check in their contract with agency A.

I would also question how reliable agency B are - they have given you advice that the PCG lawyers have said they have never heard of. They have also refused to put their money where their mouth is by providing an indemnity. Only you can answer whether you really want to work through them after this.

[2uk]

What would be interesting would be the PCG opinion of whether they think you would lose if you were sued - it would put an end to the speculation here about whether people should just say "bring it on" as they won't and those that err on the side of caution because they believe that you would lose.

First of all the PCG opinion is 10 minutes advice. They won't go very deep , looking over contracts , etc. There are many points that were brought up in relation to "Restraint of trade" on the PCG forums.

Since you did not opt out, then you can go back direct or through another agency. There may be something to stop the client taking you through a different agency, though - that's something that they would have to check in their contract with agency A.
.

People (PCG) say , when opted in , you still need 8 weeks after contract end or 14 weeks after contract start - to have a case. In my case it was only 5 weeks after contract end - so I am not risking.

I would also question how reliable agency B are - they have given you advice that the PCG lawyers have said they have never heard of. They have also refused to put their money where their mouth is by providing an indemnity. Only you can answer whether you really want to work through them after this.

I think the agent had spoken to a solicitor and the solicitor had told him whatever the agent needed to hear. Or the agent was telling me what I needed to hear. Different cases will have different outcomes.





One thing to take out of all this is that " restraint of trade" need not to be overlooked. At least for 6 months after contract end.


And it is good to have the PCG for quick advice.

[Ruprect]

If you really want the gig, couldn't you open a new company £70 - £125 approx and go through that?

You would of course need to shut the first one at some point (if you didn't want to be maintaining 2 Ltd co's), so is the rate worth the hassle?

[Bluebird]

If you really want the gig, couldn't you open a new company £70 - £125 approx and go through that?

You would of course need to shut the first one at some point (if you didn't want to be maintaining 2 Ltd co's), so is the rate worth the hassle?

normally the handcuff clause relates to the "named representative" rather than the business entity....

[TheFaQQer]

If you really want the gig, couldn't you open a new company £70 - £125 approx and go through that?

You would of course need to shut the first one at some point (if you didn't want to be maintaining 2 Ltd co's), so is the rate worth the hassle?

Unless the restriction means that the company and any representative that they send...

You might be better going to A and saying "There's a job going - can you get me in for it..." and negotiate a better rate / cut in their commission since you are doing most of the work for them.

[Bluebird]

Unless the restriction means that the company and any representative that they send...

You might be better going to A and saying "There's a job going - can you get me in for it..." and negotiate a better rate / cut in their commission since you are doing most of the work for them.

good point.

no harm in trying to shaft an agent !!!

[TheFaQQer]

good point.

no harm in trying to shaft an agent !!!

I'm in for a role at the moment - client approached me, but I need to go through an agency. It was nice ringing them and being able to say "why should I pick you over all the others? What can you do for me that they can't?"

[r0bly0ns]

You might be better going to A and saying "There's a job going - can you get me in for it..." and negotiate a better rate / cut in their commission since you are doing most of the work for them.

But then Agent B will get shirty because they introduced you to the role and will want some money.

It's a dificult situation, and I would not like to be in it.

I would trust the PCG lawyers though