Outsourcer and Restrictive Clause

[poster2034]

After a few months off, I've been offered a short term role. The end client is an investment bank in the city, however working through/via a big Indian outsourcing company (x).

The rate is really (really!) poor and its only for a couple of months. I thought I'd take the assignment for a couple of months, the rate is bad but hey at least I'm earning something and importantly the gap on my CV doesnt grow and I get another bank on my CV.

The issue is the restrictive/ non-competition clause. The contract from the agency states that I can not work for the client for 6 months, after the end of the contract. I take this to mean the outsourcer (x).

I don't particularly mind that much. The concern is what happens if afterwards I want to work for the bank ? I'm sure the outsourcer will have restrictive clause denying anyone that has worked for them working for the bank for x period. However, this will be in their contract between the them and the bank. Neither me nor the agency will have any visibility of that.

The bottom line is that I dont want to be in a position, where having done a 2 month assignment, I'm then locked out of working for one of the biggest banks in the city for the next year or however long. And for the amount I'm grossing over the couple of months, its probably not worth doing that. Is there anyone I could find out on what the restrictions are ?

How low ? I would earn more working outside the city. I was on a comparable rate 13 years ago, when I first started working !

[TheDandy]

After a few months off, I've been offered a short term role. The end client is an investment bank in the city, however working through/via a big Indian outsourcing company (x).

The rate is really (really!) poor and its only for a couple of months. I thought I'd take the assignment for a couple of months, the rate is bad but hey at least I'm earning something and importantly the gap on my CV doesnt grow and I get another bank on my CV.

The issue is the restrictive/ non-competition clause. The contract from the agency states that I can not work for the client for 6 months, after the end of the contract. I take this to mean the outsourcer (x).

I don't particularly mind that much. The concern is what happens if afterwards I want to work for the bank ? I'm sure the outsourcer will have restrictive clause denying anyone that has worked for them working for the bank for x period. However, this will be in their contract between the them and the bank. Neither me nor the agency will have any visibility of that.

The bottom line is that I dont want to be in a position, where having done a 2 month assignment, I'm then locked out of working for one of the biggest banks in the city for the next year or however long. And for the amount I'm grossing over the couple of months, its probably not worth doing that. Is there anyone I could find out on what the restrictions are ?

How low ? I would earn more working outside the city. I was on a comparable rate 13 years ago, when I first started working !

No it will mean you can't work for the end client also for 6 months I imagine. Depends on the wording of the clause I suspect. Have you opted out of conduct regs?

[poster2034]

Shady Outsourcers !

Shocking and Unbelievable ! Going through the contract in details, the Outsourcing has this in their contract

Consultant shall not simultaneously and for a period of two (2) years thereafter engage
in services of any type for competitors of the Infosys’ Customers with respect to which
Consultant has provided Services to Infosys.


I do a 10 week stint with them and I'm locked out of the entire banking industry for 2 years !!! Of course its not legally enforceable but end customers simply dont want the hassle.

If I then go on to work at another bank where Infosys is also...All it takes is Infosys's account manager to have a discreet word with the clients manager saying this guy was one of ours and he cant work for you. Unless you pay us !?

Or have I read the clause wrong ?
Even my agent said the clause is ridiculous but he said don't worry, its not legally enforceable.

[TheFaQQer]

The issue is the restrictive/ non-competition clause. The contract from the agency states that I can not work for the client for 6 months, after the end of the contract. I take this to mean the outsourcer (x).

The party should be named, or at the very least, defined in the wording of the contract. Check it carefully and see what the exact wording is.

If you didn't opt out of the agency regulations in writing, before being introduced to the client, then you will automatically have the protection afforded to you by the regulations. This could be particularly relevant here.

[TheFaQQer]

Even my agent said the clause is ridiculous but he said don't worry, its not legally enforceable.

And that's the key point - it is legally unenforceable. They would have to sue you and win, which they won't and can't do, so don't worry about it.

[TheDandy]

Even my agent said the clause is ridiculous but he said don't worry, its not legally enforceable.

Even your agent would likely say anything to get you to sign up. For the love of.........don't take legal advice from agents.