Switch agencies mid contract

**tractor** · 13 July 2015, 09:24

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Originally posted by phillcooper View Post

I am currently on an on-going contract through an agency.

I am wanting to switch to a different agency. Everything staying the same regarding the work I do here etc., the only change will be the agency I work through.

Both the client and new agency are happy with this, my only concern is the current agency.

There are a number of reasons for this change which I wont go into here.

I am wanting to know if there are any legal implications with doing this? or is it a simple case of ending my contract with the current agency and starting a new contract with the new agency.

I have checked my current contract and I am currently 'opted in' to the 'conduct of employment agencies and employment businesses regulations 2003'.

Any advice would be greatly appreciated.

Thanks

Point of order; you cannot be opted in. You are either opted out or not opted out.

If you are not opted out, the limits of any handcuff are 8 weeks from the end or 14 weeks from the beginning of the latest contract, whichever is the later.

This may not be mirrored in any upper contract (there may be more than one if you are working through a multi-tier arrangement). This means that although you may be covered and able to move, the client may still be bound to financial penalties if they contract you via an alternative source. This is how agents get away without having to prove a loss by taking the contractor to court.

The only way you will get an authoritative answer is to ask your current agency before doing anything.

**Antman** · 13 July 2015, 09:43

Unless you can get the client to end their relationship with your agency will you stand any chance of switching. After all, the agency sourced you for the role, they have a right for their commision which you want to do away with.

If the agency is shafting you on rate, the end-client wouldn't get involved, they already agreed to pay the rate to the agency before meeting you. So for the end-client to get involved it'd have to be something else than feeling empathy on your rate...

Best to look for something that the agency has done contractually with your end-client or you could just put it all down to experience and finish the contract then move on. I did the latter and went back to the same end-client direct at a later date.

**AJ1982** · 13 July 2015, 10:07

Did your previous idea take off then?

http://forums.contractoruk.com/busin...ts-please.html

**phillcooper** · 13 July 2015, 10:11

possibly, its looking a lot more feasible now. Just need to get the legalities figured out.

**northernladuk** · 13 July 2015, 11:09

What does your contract say about handcuff clauses? It is highly likely the old agency will be losing out from this so he has a pretty solid case for compensation I am afraid. I am sure there will be something in the upper contract with the client as well so am surprised the client is so calm about it. The most worrying thing will be the old agency throwing a real wobbler that the client won't want to deal with and wash their hands of you.

The reasons for the change could be pretty key to how difficult this is to pull off as well. If those reasons are purely about you the client won't want too much to do with it. If it benefits the client they maybe more likely to support you in the change and even possibly pay off or strong arm the old agency. I wouldn't guarantee that. Depends on how much pressure the old agency puts out.

**phillcooper** · 13 July 2015, 12:56

its looking like the handcuff clauses might be an issue, the only option I can think of to get around that is to buy the contractors out of their current contract, but that creates other issues.

**SueEllen** · 13 July 2015, 21:32

Originally posted by phillcooper View Post

possibly, its looking a lot more feasible now. Just need to get the legalities figured out.

Expect the agency to sue you.

**phillcooper** · 14 July 2015, 14:43

I just had a thought and would like your opinion on it -

the contract is with the limited company not the individual, meaning that the limited company cant provide a service to the end client for a certain period after the end of the contract.

What is to stop the individual closing down the limited company and setting up a new one, which they would then use to go direct with the end client?

**northernladuk** · 14 July 2015, 15:15

Isn't this all about piercing the corporate veil. There is some case law around this that means it won't work.

Something like....

http://www.hfw.com/Piercing-the-Corporate-Veil-Dec-2012

And some explanation on what it means..
https://en.m.wikipedia.org/wiki/Corp...United_Kingdom

By changing your company does not break the link as you are hoping to do.

Switch agencies mid contract