Company in admin and restarted

[VectraMan]

If it's a phoenix company you might be able to argue that it's a different client, though I'm not sure how well that would work.

It's a bit tough, but at the end of the day, you agreed the terms (as did the client).

[Craig at Nixon Williams]

I am not aware of any case law around Opt in/out status yet. Could do with some to clarify the situation once and for all though.

Agreed, there are quite a lot of grey areas where some case law would be useful! Until there is though, the sticky on CUK seems to be a great source of info on opt-in/opt-out!

[DirtyDog]

I assume that you have opted out? If so, was the opt-out done in writing before you were introduced to your client?

If you are not opted out, or you opted out after you were introduced to the client then the maximum length of a restrictive covenant is much less than 12 months!

Craig

Generally, in this case, there is a more effective restriction on the client changing the agency. Since that would almost certainly bypass anyone trying to claim restraint of trade, it all becomes a moot point.

[whiskeyfrank]

If it's a phoenix company you might be able to argue that it's a different client, though I'm not sure how well that would work.

It's a bit tough, but at the end of the day, you agreed the terms (as did the client).

True, i did agree to the terms and thats not my point really, if they decide to drop the agency (out of my control) then im left without a job and the agency has lost a contract as i wont work for them again.

The result will be -im out of a job, the company loses an experienced hand (in a tricky sector) the agency wont make any money. The agent wont get the contract back, i cant work for the company for months and the company will pay to find a new person.

[kal]

True, i did agree to the terms and thats not my point really, if they decide to drop the agency (out of my control) then im left without a job and the agency has lost a contract as i wont work for them again.

The result will be -im out of a job, the company loses an experienced hand (in a tricky sector) the agency wont make any money. The agent wont get the contract back, i cant work for the company for months and the company will pay to find a new person.

How about making the agent an offer to buy out the restriction clause, surely there is room for negotiation here?

[Craig at Nixon Williams]

True, i did agree to the terms and thats not my point really, if they decide to drop the agency (out of my control) then im left without a job and the agency has lost a contract as i wont work for them again.

The result will be -im out of a job, the company loses an experienced hand (in a tricky sector) the agency wont make any money. The agent wont get the contract back, i cant work for the company for months and the company will pay to find a new person.

It sounds like the only way that the agency stands to make any further profit from either you or the end client is by cutting their margin...I have never had the pleasure of dealing with a recruitment agency so don't know how they negotiate etc. but that surely would seem a logical place to start!

[SueEllen]

Get your client to read their contract with the current agency as if they went into administration and were brought out they are not likely to be the same company. Contacts tend to have clauses which make void in certain cases so it's possible that there is now no valid contract between the client and the agency so need to drop you both immediately.

This then leaves the way for you to go through the new agency.

I've now been with 3 clients who have dropped agencies but have kept the contractors they wanted. In all cases the client stood up to the agency so they didn't bother threatening the contractors once they realised they weren't going to win.

If the old agency is stupid enough to threaten you then a letter from a solicitor will convince them chasing you is a bad idea.

[northernladuk]

Get your client to read their contract with the current agency as if they went into administration and were brought out they are not likely to be the same company. Contacts tend to have clauses which make void in certain cases so it's possible that there is now no valid contract between the client and the agency so need to drop you both immediately.

This then leaves the way for you to go through the new agency.

I've now been with 3 clients who have dropped agencies but have kept the contractors they wanted. In all cases the client stood up to the agency so they didn't bother threatening the contractors once they realised they weren't going to win.

If the old agency is stupid enough to threaten you then a letter from a solicitor will convince them chasing you is a bad idea.

You would have thought when a business is transferred in this situation that part of the sale/transfer would be all existing contracts in place. If it didn't no one would ever be able to buy and sell a company in this situation as everyone from the contractors right down to the landlords etc would just void their contracts and come back with either a new price that is double the old or just bugger off. I bet this is a horrible bit of business law to wade though.

[Platypus]

True, i did agree to the terms and thats not my point really, if they decide to drop the agency (out of my control) then im left without a job and the agency has lost a contract as i wont work for them again.

The result will be -im out of a job, the company loses an experienced hand (in a tricky sector) the agency wont make any money. The agent wont get the contract back, i cant work for the company for months and the company will pay to find a new person.

Personally I'd go direct (after the company fires the agency) and if the agency finds out (unlikely) tell them to sue you. Since the company fired them, no action on your part lost the agency money so I don't see how they could win.

I'm obviously not a lawyer!