Client Approached about going direct

**northernladuk** · 19 September 2013, 08:11

Are you opted in or out?

Is the client willing to pay a sweetener to the agent to release you or better still will he be willing to strong arm the agent to let this one go else risk any future business from them?

When you go direct what will you be doing? Same work or a completely different piece? It's important to know as it will have an affect on whether or not the handcuff clause is valid or not. Still have to get through the handbags even if it isn't valid.

**malvolio** · 19 September 2013, 08:18

Don't think the role is important or relevant. While that's what in your schedule with the agency, their contract will be for the supply of a warm body, not a technical resource.

The client has to resolve this, not you. It is the Client/Agency contract that is the killer. Agency principles tend to evaporate when their money is covered. (It's worth noting a recent LinkedIn message of congratulations from a senior agency bod to one of his team; the measure of success is the amount of billings per month, nothing else)

**Contreras** · 19 September 2013, 08:58

On the occasions this has happened to me it's been the team leader or middle manager on the project that's wanted to engage MyCo direct. My position is always "I'm happy to be direct or via the agent, it's up to you and YourCo., and I won't mention anything to the agent if you don't". On each occasion it's been blocked by HR or higher management.

From things that are sometimes said I have had the sense that the person asking believes the agent's cut is larger than it really is and a) it would have soured the relationship for them to find out my actual rate from the agent, b) there would be a better chance of improving the rate by squeezing the agent's margin than going direct. Each circumstance is different of course.

**Treacle100** · 19 September 2013, 09:38

"Is the client willing to pay a sweetener to the agent to release you or better still will he be willing to strong arm the agent to let this one go else risk any future business from them?

When you go direct what will you be doing? Same work or a completely different piece? "

I don't know about whether they would pay a sweetener..they could use "strong arm" tactics as I amnot the only company here through the agent...

I will be doing the same work as it is BAU stuff.....but we cover two software installations and I support one, the idea (if getting a diferent role would work) is that I be assigned to the other (and still support both)...

Thanks for replies so far !!

**TheFaQQer** · 19 September 2013, 10:44

If the role is the same, and the client therefore views you as a permie, how confident are you of your IR35 status?

**Treacle100** · 19 September 2013, 10:53

I'm not that confident about IR35 - but I have a contract for 5 days a week with only an option to work mondays and fridays if the client needs me to....normally this translates as a 4 day week with the idea that if I am not needed on the friday I *could* consult elsewhere.......would this not cover IR35 ? I am pretty certain that the client doesn't view me as a permanant resource......

**jamesbrown** · 19 September 2013, 11:15

Originally posted by Treacle100 View Post

normally this translates as a 4 day week with the idea that if I am not needed on the friday I *could* consult elsewhere.......would this not cover IR35 ?

Correct, that point would not cover your main contract as being outside IR35. It applies on a contract-by-contract basis. In essence, you must demonstrate at least one of RoS, lack of MoO and lack of D&C on each contract where you claim to be operating outside IR35, both in the contract and in reality, i.e. demonstrably through working practices.

**Jeebo72** · 19 September 2013, 13:18

Originally posted by Treacle100 View Post

Hello - I am currently in contract until the end of the year. The client has approached me about going direct at the end of this contract. The contract has a 6mths clause about working for the client after termination of contract.

I have heard various 'ideas' about whether this is enforceable (freedom of labour) or getting around it (eg. changing my job title...so it is effectively a new role I have been given) .....but does anyone know if there is a way I can contract direct without taking a 6mths holiday ?

I know this is not very ethical, but I am very keen to continue with this contract if possible.

TIA.

Just do it. They prob won't find out (unless you do stupid stuff like update linkedin or tell them where you're going), or have the client talk to the agent along the lines of: we want this guy, and if you ever want to place contractors with us in the future you'll let this one go ... which I've done before without problem. People worry too much on here...

**Goatfell** · 19 September 2013, 15:40

A previous client of mine was very keen for their contractors to go direct, probably because the head of department was a contractor and described agencies in the usual terms.
When my agent was approached they said "Fine no problem, it'll cost you £X,000 to buy them out".
The end result was that I gave the agent the required notice at the beginning of the first extension, then a new direct contaract was put in place.

Client Approached about going direct