Client and agency have fallen out, I'm caught in the middle. Advice appreciated!

[nmjm21]

Hi all,

I'm contracted on a 3 month contract with a 6 month lock out clause. Expectation from all sides was that this would be extended for a further 6 months. However, the agency has totally hacked off the client for various reasons (none to do with me or the terms of my contract) and all other contractors sourced through the agency have left. Agency's contract with client expires end of the month. Client wants to sever all relationships with agency with feelings running high on both sides. The client wants to renew with me directly.

I'm nervous of the implications of the lock out clause in my contract. I'm not sure in this situation that the agency has a legitimate business interest to be protected beyond the end of my contract, due to the breakdown between the 2 companies. I have no desire to break my contract and am happy to see it through. Ideally I want to renew with the client (it's a good gig) and manage to miss any of the bullets firing about!


Any advice you can give me would be much appreciated!

Thank you

[teapot418]

Did you opt out of the Agency Conduct Regulations? If not, a 6 month clause is unenforceable.

My understanding is that the agency could only claim for loss of revenue, and if the client won't use the agency, there is no revenue lost.

If you have access to a legal helpline, it's probably worth taking advice.

[northernladuk]

Clear cut this one. A handcuff has to be fair and reasonable to get anywhere. The agent has to prove loss to invoke it. You carry on with the client through new agency B because agency A is no longer engaged they have not lost anything.

If A was still engaged and you wanted to swap to B, A would lose revenue and it would be enforceable. This is not the case.

Handcuff between you and agent is meaningless, fill your boots.

Saying that... the one problem you might have is any handcuff between the client and agent in the upper contract. Nothing you can do about that though. Have to let them fight that one out and see what happens.

[nmjm21]

Yes, I opted out.

Thanks for your advice. That's what I was hoping to hear. Cheers :-)

[teapot418]

Yes, I opted out.

Thanks for your advice. That's what I was hoping to hear. Cheers :-)

Apologies - I posted that the wrong way round. NOT opting out (i.e. being opted in) means the clause is unenforceable. (Edited now)

But as NLUK says, an unreasonable restraint of trade won't stand up if challenged.

[nmjm21]

That's ok. Thanks for clarifying - I thought it was the other way round too.

[fool]

So when things like this happen it might be because the agent is a tulip but equally it might be because the client is. Unless you're sure, try to get another agent in between you and the end client, otherwise your next post might be "my client isn't paying my invoices".

[achilles]

There are no implications regarding your contract with the agency. You can just find another agency and sign a new contract with them.

The only implication is for the contract between the client and the agency that lost out. But this can be easily resolved between the two parties by paying the agency a fee in the region of 15%-20% for most contracts. Assuming of course that the agency are not in breach of the terms of their contract with the client in which case they will get nothing!

A

[LondonManc]

Clear cut this one. A handcuff has to be fair and reasonable to get anywhere. The agent has to prove loss to invoke it. You carry on with the client through new agency B because agency A is no longer engaged they have not lost anything.

If A was still engaged and you wanted to swap to B, A would lose revenue and it would be enforceable. This is not the case.

Handcuff between you and agent is meaningless, fill your boots.

Saying that... the one problem you might have is any handcuff between the client and agent in the upper contract. Nothing you can do about that though. Have to let them fight that one out and see what happens.

Correct. Other contractors ending adds weight to evidence that it's clearly a client-agent dispute and that the agent can no longer provide the service that you'd signed up for in your contract.