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By-pass the Agency for Overtime?

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    By-pass the Agency for Overtime?

    Hi all,

    I am new to contracting, I set up as a Limited company a couple of months ago, and I am doing work for a company via an agency. FYI, I am in the construction industry, working as a structural engineer.

    So, obviously...the company I work for, pay the agency my hourly rate + the agency fees.

    The situation is:
    The company I work for do not want to offer me any overtime during xmas due to me being more expensive than regular staff! But they said it would be ideal if they didn't have to pay the agency any fees.

    My Question is:
    Is there anything wrong with my submitting an invoice direct from my Ltd company to the company I work for? Basically by-passing the agency.

    Is this legal?

    Any insight would be appreciated, thanks.

    Tom

    #2
    You are in a contract with your agency and there will be a handcuff in there not allowing you to work direct. You will be in breach of contract and will most likely be dropped and sued by them.

    You are a contractor, you have a contract. At least try and understand the situation and your own contract.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      What do you mean by "Is this legal?"

      Is it criminal to do this? No

      Would the agency be able to sue both you and the client under civil law if you do this? Yes

      Would you be liable to pay the agency compensation if when they take you to court and win? Yes

      Would you be liable to pay the agency's court costs when they win? Yes
      "You’re just a bad memory who doesn’t know when to go away" JR

      Comment


        #4
        Originally posted by BigIdiot View Post
        Any insight would be appreciated, thanks.
        Your contract is with the agency - is there anything in there that prevents you from going direct to the client? If there is, then see whether it would stand up to a legal challenge if you needed to challenge it.

        The agency will have a contract with the client, obviously - get the client to check the contract and see if there is anything in there which prevents them from engaging you direct. If there is, get them to see whether it would stand up to a legal challenge if they needed to challenge it.

        As a clue, there will be something in your contract which prevents it, and there will be something in the client-agency contract which prevents it. Since you are already in contract with them, there is nothing which would be classed as unreasonable - unless it is poorly worded - so chances of you doing this is nil.

        Stick your feet up, and don't work overtime. If you really want to do they work, then you cut your rate and do the work, so that effectively there is no agency commission.
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        Comment


          #5
          Thanks a lot guys,

          I didn't think it would be a legal thing to do, but as I'm an inexperienced contractor I thought I'd check.

          Cutting my rate for overtime was also an option.

          Again, cheers!

          Comment


            #6
            It's not "illegal" that implies that it's criminal behaviour.

            What you asked is stepping over the line in a matter of civil contract law which is mostly a case of read your contract and apply common sense.

            Comment


              #7
              ...

              Originally posted by TykeMerc View Post
              It's not "illegal" that implies that it's criminal behaviour.

              What you asked is stepping over the line in a matter of civil contract law which is mostly a case of read your contract and apply common sense.
              Or ask yourself how would you feel if the boot was on the other metaphorical metatarsal?

              Comment


                #8
                The only way round this, I would say, is to ask the agency if they're in a position to do a deal/ goodwill gesture for you.

                Unlikely, but it depends on your relationship with them.

                Comment


                  #9
                  A few years ago this type of situation came up for me.

                  The Clientco wanted me to do on-call with extra hours paid if I got called out. I discussed it with the Clientco manager I was working with and the cost was obviously a stumbling block for him. We agreed a rate and he approached the agency and told them that I was to be paid the full whack for the extra payments without any markup for them.

                  As the manager could decide which agencies to use they agreed without fuss.

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