Switching Umbrella companies midway through contract

[catsoup]

Hi,

I have read elsewhere that its usually okay to switch umbrella companies, even midway though a contract. Its just a matter of giving notice to your current company, and getting a new contract arranged to seal the deal between the new company, ageny and client.

The only issue mentioned was that some less reputable umbrella companies may change an 'exit fee'. (Or similar change cloaked behind a different name)

But! the terms and conditions of the company I wish to leave say:


"13. POST TERMINATION RESTRICTIONS
13.1 You hereby agree that you shall not (without the prior consent in writing of the Company) for a period of 6 months immediately following the termination of your employment with the Company, indirectly or directly or through an agency or otherwise and whether on your own behalf or in conjunction with or on behalf of any other person, firm, company or other organisation, (and whether as an employee, director, principal, agent, consultant or in any other capacity whatsoever), (a) be employed or engaged in, or (b) perform services in respect of, or (c) be otherwise concerned with the Customer for whom you were carrying out an Assignment, provided always that the provisions of this clause 13.1 shall apply only in respect of Services with which you were either personally concerned or for which you were responsible whilst employed by the Company during the 12 months immediately preceding the termination of your employment.
13.2 You hereby agree that you will not for a period of 12 months immediately following the termination of your employment, whether on your own behalf or in conjunction with or on behalf of any other person, company, business entity or other organisation whatsoever, directly or indirectly:-
(a) (i) induce, or (ii) solicit, or (iii) entice or (iv) procure, any person who is or was a Client or Customer Employee to leave their employment; or
(b) be personally involved to a material extent in (i) accepting into employment or (ii) otherwise engaging or using the services of any person who is or was a Client or Customer Employee;
and in this Clause 13.2 "Client or Customer Employee" means any person who was employed by a Client or Customer for at least 3 months prior to the termination of your employment and with whom you had material contact or dealings in performing the Services.
13.3 The provisions of clauses 13.1 and 13.2 above shall only apply if you have opted out of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 in respect of that Assignment.
13.4 The provisions of clauses 13.1 and 13.2 above shall remain in force, even if your employment terminates (for any reason), for the restricted period envisaged by those clauses."

Which I think is basically trying to say I cant work for the client through the new umbrella company.

Does anyone have any knowledge on this?

Thanks,

Chris.

[Wanderer]

I have read elsewhere that its usually okay to switch umbrella companies, even midway though a contract. Its just a matter of giving notice to your current company, and getting a new contract arranged to seal the deal between the new company, ageny and client.

I can't see why you shouldn't be able to switch umbrella companies mid contract. You may have to give them (say) a month's notice that you are terminating the agreement with the umbrella but other than that I can't see why you would have to pay an "exit fee".

That said, it's going to cause a lot of admin if you try to switch mid contract and probably annoy your agency. Do you have a very good reason for switching? Can the switch wait until the contract expires?

13.3 The provisions of clauses 13.1 and 13.2 above shall only apply if you have opted out of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 in respect of that Assignment.

There is a sticky about opting out that explains a lot of this.

Agencies will still try to pull the wool over your eyes on this one but the bottom line is that you cannot opt out of the agency regulations unless you are trading as a Limited Company so don't worry about it - these restraint of trade clauses don't apply to you.

[LisaContractorUmbrella]

There is no reason why you cannot terminate your employment with your umbrella company at any point of your choosing but you should be aware that you will be working (or should be) under a contract of employment and therefore you will be required to give notice

[MCC7]

I switched from an umbrella to a Ltd midway through my contract (as soon as I heard it was getting extended). The agency said this wasn't possible but when I looked through the umbrella/agent contracts, there was no reference/agreement to it - so they caved in.

More paperwork for the agency than anything else.