Can they sue me?

[stwpt]

Hi.

They are 4 companies

-Employment business
-Contractor (me)
-Client
-Customer

In the contract : Contractor will not provide services to the client during 12months following the end of the most recent contract.

My contract is about to end. Can i make contract with Customer company, not Client company?

Thank you

[northernladuk]

Do a search for 'handcuff clauses' in this site. This question is asked almost daily and in most cases much better than this.

Also read and understand the opt in sticky.

[stwpt]

Do a search for 'handcuff clauses' in this site. This question is asked almost daily and in most cases much better than this.

Also read and understand the opt in sticky.

Thank you

[Wanderer]

As Northernladuk says, read the opt out sticky and decide if you were opted out. If you didn't agree to opt out at the right time then this clause is possibly unenforceable.

My impression is that generally, contractors don't win these types of battles unless the client is on their side. The most likely scenario is that the agency will kick up a big fuss in order to bully the client into refusing to do business with you. If the client is willing to stand against the agency with you then you may have a chance. Quite often the client will put this into the "too difficult" pile and wave goodbye to you. Other times, the client may be willing to pay off the agency to release you from the restraint of trade.

Do a search for 'handcuff clauses' in this site.

For further reading, try using google to do these searches and read everything that has been discussed:

• site:forums.contractoruk.com "restrictive covenant"
• site:forums.contractoruk.com "restraint of trade"
• site:forums.contractoruk.com "opt out"

Good luck and please, let us know how you get on! It's always interesting to hear which way these cases turn out.

[Wanderer]

Can i make contract with Customer company, not Client company?

Reading that again, personally I would give it a shot and never breathe a word to the client or the agency.

A 12 month restriction against working for customers of the client is an unfair restraint of trade in my opinion, presuming that the agency have no existing relationship to the client's customer therefore no business interests to protect....

Taking proper legal advice on that matter may be a good investment.

[BlasterBates]

I agree I think unusually in this case you can go ahead. It would be the client you couldn't work for. I've never seen a clause where they refer to clients of clients, and I doubt it would be admissable. Must say it's not in the spirit of the law but I think that you would be within your rights, so probably a loophole you can exploit. If you're worried just run it through an accountant/soliciter first.

[stwpt]

[QUOTE=Wanderer;1652572]As Northernladuk says, read the opt out sticky and decide if you were opted out. If you didn't agree to opt out at the right time then this clause is possibly unenforceable.

Hi, I dont understand about Opt in, Opt out. What does it mean? I just signed contract to UK agency company. their client is Italian Co. and Italian company's customer is Finnish Co. I'm in Helsinki

Opt in, opt out? What the employment agency regulations are all about :: Contractor UK

[Wanderer]

I've never seen a clause where they refer to clients of clients, and I doubt it would be admissable.

Here is an example from a contract:

The Consultant shall not enter into a similar contract with the Client or any member of the Client’s Group or any other person or company with whom the Consultant had material contact in the course of the supply for a period of 12 months after the date of termination

I agree that's probably so broad to be unenforceable and quite apart from that, if the contractor doesn't opt out then it's not enforceable anyway.

Of course the agency doesn't care about that. They would never take it to court, it's just used for bluff and bluster. Hell, it costs them nothing to put that in there and it might make them a bit of money, what have they got to lose?

[stwpt]

Thank you everyone for the reply

[Wanderer]

Hi, I dont understand about Opt in, Opt out. What does it mean?

We are not going to feed it to you on a spoon, all I can do is tell you again: Read the opt out sticky.