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Legal Advice required! switching from contractor to Perm but inside EAA 2003 Act

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    Legal Advice required! switching from contractor to Perm but inside EAA 2003 Act

    Hello Everyone,

    I would really appreciate your advice on the following situation. I've been working for a client for the past 5 months under an umbrella company hired via an agency. The contract was for a 6 month period, meaning it will run out in about a months time. The Client has asked me to switch to a permanent contract with them as they where very happy with my work, which I want to do as well as I really like working for that client.

    However looking over my contract with the umbrella company I've realised I opt'd out of the EAA act which apparently affects my ability to work for the client again after the end of my contract. This is the section in the contract which concearns me (and don't fully understand):

    8) You hereby agree that you shall not (without the prior consent in writing of the Company) for a period of six months immediately following the completion of this Assignment (including any extension), 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, (in any 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 this Assignment. However, the restriction under this paragraph 8) will not apply where you are undertaking a new Assignment for the Customer, and the Client on that new Assignment is the same as the Client for this Assignment. The defined terms in this paragraph shall have the same meaning as defined in your Terms and Conditions of Employment, save that the definition of "Customer" shall include any Subsidiary or Holding Company of the Customer. "Subsidiary" and "Holding Company" bear the meanings as defined in section 1159 of the Companies Act 2006. The terms of this paragraph 8) are without prejudice to clauses 13.1 and 13.2 of the terms and conditions of your employment.

    9) The provisions of paragraph 8) above shall only apply if you have opted out of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 in respect of this Assignment.

    If I was to stop employing the umbrella company, and the client was to agree a condition with the agency to release me from contractor to permanent would my umbrella company actually have any legal standing to say I cannot work for the client as a permanent employee? And if so apart from getting their consent what can I do?

    I would really appreciate any guidance and legal advice anyone can other!!

    Thanks in advance,

    Abulooz

    #2
    Originally posted by abulooz View Post
    The Client has asked me to switch to a permanent contract with them as they where very happy with my work, which I want to do as well as I really like working for that client. If I was to stop employing the umbrella company, and the client was to agree a condition with the agency to release me from contractor to permanent would my umbrella company actually have any legal standing to say I cannot work for the client as a permanent employee?
    You should let the client sort that out with the agency. Most likely, they will pay off the agency to release you from your contractual terms.

    If you refused to opt out then this would have limited the amount of money the agency can charge the client for the temp to perm fee so don't agree to opt out next time...
    Free advice and opinions - refunds are available if you are not 100% satisfied.

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