Termination of contract and joining new agency but the same client

[Yogi]

Hi, I have 2 years of fixed term contract with agency A for client B. Now client B is going to terminate the contract with my agency A and have advised them to start contracting through some other preferred supplier (agency C). I am keen to directly join agency C for better rates, but my contract with A states that, I can not work for the client of A for 1 year after the end of the term. Can someone please advice?

[NotAllThere]

If the client are happy for you to go through C, then sign up with them; 1 year is not a reasonable handcuff clause.

You opted in or out?

[Yogi]

Unfortunately I have signed contract with this clause. It was my ignorance, rather assurance from agency that, this can be sorted out by negotiation

[SueEllen]

Unfortunately I have signed contract with this clause. It was my ignorance, rather assurance from agency that, this can be sorted out by negotiation

I strongly suggest you read up on opt-in and opt-out.

As just signing a contract with an opt-out in it doesn't mean you are legally opted-out.

Edited to say: In addition the way the handcuff clause is written may be enough to make it completely unenforceable not only just on the time.

[NotAllThere]

It's possible for clauses in a contract to not be enforceable, even though you signed up to it. For example - offering your first born as sacrifice, or, a year long handcuff clause.

[Wanderer]

Hi, I have 2 years of fixed term contract with agency A for client B. Now client B is going to terminate the contract with my agency A and have advised them to start contracting through some other preferred supplier (agency C). I am keen to directly join agency C for better rates, but my contract with A states that, I can not work for the client of A for 1 year after the end of the term. Can someone please advice?

Have a read of the opt out sticky. In particular, you need to consider if the opt out was made "before the introduction or supply" to the client because if it wasn't then it's NOT valid therefore the clause won't hold up in court.

If the client has dumped agency A then approach agency C but be very careful here.

Do NOT tell agency A what you are doing and do NOT tell agency C that you used to work for agency A. They may figure it out for themselves or they may not. If agency A get wind of what's happened and start throwing threats about then insist that they put their case to you in writing - they can say anything they like over the phone and it doesn't mean tulip.

In your position I would take a view like this:

1. The opt out wasn't valid because it wasn't signed before the introduction or supply to the client, therefore the 12 month restriction is invalid
2. 12 months is an unenforceable restraint of trade
3. The agency is liable for loss of earnings if they illegally prevent you from working for the client through another agent

If you can't work for the client through agency C then ask them who else is on their preferred supplier list and see if you can do business through some other agency but don't tell them about the tulipfight between agencies A and C.

Once they start referring the matter to their legal team, you know you are getting somewhere. Anything the agent says is just bluff and bluster as far as I am concerned. If they managed to prevent me from working for the client then I would threaten to sue agency A for damages (loss of earnings) due to their restraint of trade.

Good luck and let us know how it turns out.

[JamJarST]

A word to the wise, be prepared for Client B to bin you if Agency A make a fuss regardless of the legalities.