Unfair termination requirements

**borderreiver** · 25 August 2015, 07:29

At the risk of sounding like a broken record (yes, I'm old enough to remember them

), what does your contract say?

If there's no handcuff clause specified in it then the agency can whistle. On the other hand, if there is one ...

...

**northernladuk** · 25 August 2015, 07:33

Why do you think you cannot work for them direct? After 10 years you've probably forgotten but the handcuff should be in your contract.

I hope your IR35 insurance is paid up with the length of service... Lol

**DaveB** · 25 August 2015, 07:43

Originally posted by Watchmaker View Post

Hello
I've been a regular visitor for a while and picked up lots of good advice in the process. However, I don't recall, and can't find a post, which covers my current problem.

I have been working for one particular client for nearly 10 years. This is the only client of mine for whom I work through an agency. All others I work for direct. The agency has been getting their 10% from me all this time, but I now feel that it's money for old rope, and that the contract has run its course. The client is keen for me to work direct for them so I gave the agency notice of termination.

The agency are demanding a fee of 15% of my base salary, although how this is calculated based on my hourly rate is not specified anywhere, and that I cannot work direct for this client for six months.
Maybe it's me being bear of little brain, but as I understand the legislation neither of these conditions are enforceable. Am I correct, or if not, what are my options?. Thanks.

You base salary is probably about £10,600 this year

More seriously, check your contract and talk to the client. If the agency have other contractors on site then the client probably has some leverage with them to sort this out.

**northernladuk** · 25 August 2015, 07:46

It could be the 15% is in the upper contract between the client and agent or it could be the agent know he's got you so is just making it up.

Anyway, agent has you in a handcuff and for a handcuff to stand up it has to be fair and reasonable and the agent has to prove loss. 6 months is more than reasonable and the agent will lose revenue so he's got you hook line and sinker.

Your options are
Pay it... But don't expect the 10% in your pocket. That's the agencies money not yours.
Carry on with your emplyment
Renegotiate the rate but you will have to be prepared to walk which I guessing you aren't.

**pr1** · 25 August 2015, 08:00

Originally posted by northernladuk View Post

It could be the 15% is in the upper contract between the client and agent or it could be the agent know he's got you so is just making it up.

Anyway, agent has you in a handcuff and for a handcuff to stand up it has to be fair and reasonable and the agent has to prove loss. 6 months is more than reasonable and the agent will lose revenue so he's got you hook line and sinker.

Your options are
Pay it... But don't expect the 10% in your pocket. That's the agencies money not yours.
Carry on with your emplyment
Renegotiate the rate but you will have to be prepared to walk which I guessing you aren't.

or get your employer to pay it?

**LondonManc** · 25 August 2015, 08:08

Originally posted by DaveB View Post

You base salary is probably about £10,600 this year

More seriously, check your contract and talk to the client. If the agency have other contractors on site then the client probably has some leverage with them to sort this out.

Works both ways. If they have nobody on board, clientco can simply say that they're not doing business with agentco any more and contractor cannot be blocked as agentco can no longer provide the service that the handcuff applies to.

**northernladuk** · 25 August 2015, 08:16

Originally posted by LondonManc View Post

Works both ways. If they have nobody on board, clientco can simply say that they're not doing business with agentco any more and contractor cannot be blocked as agentco can no longer provide the service that the handcuff applies to.

I think you'll find thats not the case. In that situation it's clear they are manipulating the situation to cut the agent out and the handcuff will stand. Either that or to cut the agent out they will have to pay the fee to buy the contractor off the agent as part of the disengagement.

In many cases when it goes to court the party that can prove a loss has the upper hand so the agent has a very strong case.

**LondonManc** · 25 August 2015, 08:19

Originally posted by northernladuk View Post

I think you'll find thats not the case. In that situation it's clear they are manipulating the situation to cut the agent out and the handcuff will stand. Either that or to cut the agent out they will have to pay the fee to buy the contractor off the agent as part of the disengagement.

In many cases when it goes to court the party that can prove a loss has the upper hand so the agent has a very strong case.

Key may be if clientco has a PSL and agentco hasn't been on it and this contract is by exception. If they can prove they've had a PSL.... oh why do I give a toss, he's a permie really anyway!

**northernladuk** · 25 August 2015, 08:25

Where is the unfair termination in all this anyway?

There is also the option of going to court to prove you are a permie with full rights which may trump the contract.

Unfair termination requirements