Anyone ever bought out of contract? (trade restriction)

[CheeseSlice]

I'm considering doing this; i.e. paying the 20%, then keeping the rate the same and so over the contract term I dont lose anything as I receive the agency cut aswell. But the benefit comes in profiting from future renewals at the higher rate.

Maybe you've already checked this, but be careful that your client co isn't a monolithic giant that can't just take on contractors direct without them being on a preferred supplier list. I've hit this in the situation where both me and the client co were trying to work direct from the start but then ended up having to go through an agency (lucky monkeys thought it was their birthday) due to this annoying restriction.

Also, whats to stop your client co battering down your day rate now that they're not dealing with the agency and its overheads? Some clientco's enjoy the piece of mind they get from dealing with agencies, knowing they're paying a little extra for a recruitment service who will replace you the minute you turn bad or get ill. Or maybe they like the fact the agency knows how to haul your ass back in using the fury of the law and courtroom should you try to bail out on the contract. If they're not paying for those little luxuries anymore, maybe they'll want a cheaper service from you....

The second one may be unlikely, but in either case I would want to get any restrictions double checked and the rate down in writing before proceeding with severance on potentially flawed profit calculations.

[Wanderer]

Well I had a call from the agent today saying that I should resign the contract and opt out. Still I said nah, and he hung up grumpily.

Sounds like they are bang to rights. If the client agrees that you could go direct, I'd do it. If the agent wants money then you can point out that you didn't opt-out so the restriction clause is completely invalid and would be struck out by a court. Be prepared for a bit of bluff and bluster from the agency and you might want to take legal advice.

Business to business contracts are only regulated by contract law so the agency can try and put in what clauses they like

I disagree. They are bound by the "Conduct of Employment Agencies and Employment Businesses Regulations". It's not the conduct of employment seekers, small businesses or contractors regulations. They only time they would NOT be bound by this in their B to B contract is is they weren't an Agency or Employment business. My reading of the regulations is that they apply to all to the agencies relationship with the client as much as the worker inasmuch as the agency can't negotiate a restriction with the client which would be to the detriment of the worker.

I would want to get any restrictions double checked and the rate down in writing before proceeding with severance on potentially flawed profit calculations.

And WHS too.