Advice on agency contract

**pmeswani** · 4 June 2010, 14:53

Originally posted by kireen0608 View Post

Hi,
I haven't posted here before but hoped someone would be able to give me some advice as I've searched and can't seem to find the answer to my problem.

I am currently contracting with a consultancy through x agency, working on a particular site. I'm not particularly happy with the consultancy as they make all kinds of promises to do with rate increases which never transpire.
I've been approached by another area to move and go work for them, on a better rate and in a better role... But I'm not sure I can.
My contract states that I cannot work for the client or anywhere near the clients site unless through my current agency, which I'm hapy to do ... But their initial reaction (they're looking into it with their management) is that their agreement is to place contractors to the consultancy so they can't represent me if I contract directly to the client.
Are they allowed to do that? If the contract states that I can only work for the client, if represented by said agency but they won't represent me (or can't) then where do I stand?

Thanks for any advice guys, I really appreciate it

K

xx

I am not a Lawyer, and don't know much about contract law either. You have to ask yourself the following questions.

1. Can any agency put a restriction on any trade for which they cannot get involved in?
2. Does the agency have exclusivity over the client, and the clients suppliers and partners?
3. Does the agency have exclusivity of all companies within a certain area?

I very much doubt it. If your contract has a termination clause, you are entitled to use it. Even if the client provides the agency a list of partners and suppliers they deal with (which may or may not legitimate within itself), and even if you told the agency who you are going to go and work for, there is little they can do with it.

However, if you are going to work for a different department within the organisation, it can be argued that you and the client are in breach of contract. So either you or the client may need to pay the agency off.

**kireen0608** · 4 June 2010, 18:18

Originally posted by pmeswani View Post

1. Can any agency put a restriction on any trade for which they cannot get involved in?

This is the part that makes me think that I should be able to do this. My contract is between the consultancy and my company. The clause in the contract states that I cannot work for the client, which I believe would be the Consultancy? unless represented by this agency. I don't want to work for the consultancy, I want to work for the company direct, so am not in breach of the clause ... No?
I'm struggling to see how they can stop me from contracting directly with the company, unless this would cause conflict between them and the consultancy if they were to place me direct. In which case, they would have to release me and allow me to go through another agency, and not enforce the bit that says I cannot contract for the client or the client's customer unless through that agency ...

The Company and the Consultant will not either during the Project Period or thereafter for a period equivalent to the period of supply under these terms of engagement (but not less than three months nor more than 12 months) either directly or indirectly (whether under a contract of service or a contract for service or through any third party) provide the Services provided (or substantially the same as those provided) under these terms of engagement to the Client (or the Client’s customer or client) except by contract through 'x' or by the Company paying to 'x' a fee of 25% of the total remuneration agreed to be paid for the services by the Client (or the Client’s customer or client) for the relevant period of supply (but not exceeding 12 months).

... or am I expecting too much?

Thanks

K

Advice on agency contract