can't go direct clause

[gekob]

Hi all,

I'm after some advise on the usual "you can't go direct with our client after this contract expired" clause most agencies put in their contracts.
Or maybe it's just me, but so far I've almost always had something like that in it.
Anyway, I was told that under EU law adding clauses like this is actually illegal and that the agency was bound to lose if they took you to court.
Does anyone have any experience with this or know any stories of cases where the agency actually did take someone to court???

Many thanks
Gerry

[malvolio]

It's not illegal, although under the agency regs there are limits to how long it can apply if you are opted in (12 weeks max from memory)

According to Roger Sinclair on the Egos website, the test the court will apply is "Is this a reasonable restriction?" - for instance, tying down a bog-standard coder for 12 months is not really reasonable while doing it to someone with a very specific, commercially valuable skill may be. If challenged in court and found to be uneasonable, the clause will be disregarded by the court.

Much better, however, to negotiate it to a mutually acceptable level in the first place - if you can!

(Also - worth remembering that if the client wants you, the agency probably won't fight too hard and risk losing the account altogether. I've had that particular battle myself - on both sides!)

[planetit]

Read this

Especially "restrictions in restraint of trade will generally only be enforceable to the extent that they go no further than reasonably necessary to protect legitimate commercial interests of the party imposing the restriction. Protecting their existing business connections may be such a legitimate interest; prevention of mere competition is not. "

And this

[malvolio]

Typical - give a quick answer and there's always someone who can remember the original source...

Is it possible to get a RAM upgrade for the human brain?

[Dundeegeorge]

It's legal but only up to a point

A restriction can be applied for a short time following work contracted via an agency with a particular client, but it all depends on the length of the original contract and the length of the restriction.
For example at the end of any contract anything greater than 3 months restriction is unlikely to be upheld in court, and for a shorter contract a restriction greater than a month is unlikely to be upheld.
You pays your money etc.

[gekob]

sounds good to me...thx

I have a 8 month clause in my current contract and it's purely for "prevention of mere competition"...happy days
brilliant - that pretty much answers my questions - thanks very much guys!!!
much appreciated

Gerry