Going direct

[BillHicksRIP]

Hi. I've been working on a long-term contract for a client, been renewed several times, and have reached the stage where I've been told that I cannot be renewed again based on the current setup. I was supplied by an agency, and am paid through a brolly. From what I can tell, there is a either a policy of the client that says they won't renew the same contract beyond 2 years, or my agency will not supply the same person (perhaps due to dwindling percentages on my rate.). I know that's a bit vague, but it's the only info I have right now. As far as I know, my boss wants to extend me again, and has asked about restrictions of me being hired again direct through my own limited company, after this contract expires. I've seen restrictive covenant mentioned here before, but I'm confused about it's application to me. The contract exists between my agency and my brolly, so would any restrictions restrain me from going direct if this contract expires, and I go direct?

Many thanks for any info.

[Rebecca Loos]

I don't think the fact that you are paid through a brolly is relevant. Ooops, re-read your mail, so ignore that first phrase.

The first question you can try and answer is: have you opted out? (of the Agencies Regulation Directive thingy)

If yes, then it will be harder to go direct, as your contract may have restrictive covenants in place (check first, it may be in the general terms and conditions)

If no, then you can go direct after about 8 weeks I think? Regardless of the covenants in the contract (if you have not opted out, then these covenants become illegal)

Please note that by default you are opted in, so if you haven't done anything about it, then you're in and therefore you can go direct after the N weeks period.

I have just realised that you have said the contract was between the agency and your umbrella, so you are asking whether even if the covenant applies, it would only apply between to you as a brolly employee and not you as a LTD company. Mmmhh.. Perhaps. I don't know

[The Lone Gunman]

AS far as I know, and I have not seen your contract and I am not a legal bod, the contract between the agent and brolly will have no bearing on you and your limited.

It has always been the case that if you realy wanted to cut an agent out of the deal the easiest thing to do was fold one Ltd and set up another that is not contracted to the agent.
Your situation is exactly that.

Unless of course you have signed personal terms with either the agent or the brolly disallowing such things.

Read your contract!
Get legal advice!

[BillHicksRIP]

Many thanks for the replies. The only contract I've ever signed is the one with the brolly. There's nothing that I can see in my contract with the brolly, or the contract between the brolly and the agency, that restricts me working for the same client at the end of this contract directly. Perhaps there's something that forbids this in the contract between the client and the agency. I've never opted out of the new Agency regulations - in fact, I was never asked to, and from what I've read on the boards, I'd be automatically opted-in. The regs came in after the start of the original contract, and it's been renewed a few times since. My understanding is that the agency cannot stop me going direct if the client offers to renew for between 8-14 weeks after the current contract expires, then after that, I can go direct with no penalties. I will take legal advice nearer the time, I just want to get the basics so I don't sound like a bumbling fool when I start the process.

Advice is really appreciated. Thx.

[Mailman]

Yes, the 8-14 week thing is only if there is a clause in your contract that allows for the agents to be managed out of the business relationship with the client. If there is a clause there then it probably allows for x month extension where they can claim their usual percentage and then at the end of that period you can go direct with the client.

If there is no clause in your contract that allows for the agents to be managed out of the business relationship then you are free to go direct at the end of your current contract.

Regards

Mailman

[BillHicksRIP]

Excellent. Thanks folks.

[Tramline]

Excellent. Thanks folks.

Bill what was the outcome of this, it looks like I will be in the same situation as of next Friday.

[BlasterBates]

If there is no contract between you and the agent you're in the clear. Sometimes agencies get you to sign an agreement to stop you jumping ship. But in this case for whatever reason the agency can't renew anyway, so it is highly unlikely that he'd chase it up, in other words he's terminated the contract from his end.