Second contract direct with client in case something happens to agency

[Jase]

Starting a new gig, signed contract with agency after IR35 review and a few changes. All good. Now the agency has asked me to sign a second contract direct with client in case something happens to agency. Never heard of this before. Anyone else had this?

[WTFH]

Starting a new gig, signed contract with agency after IR35 review and a few changes. All good. Now the agency has asked me to sign a second contract direct with client in case something happens to agency. Never heard of this before. Anyone else had this?

Have they sent you the 2nd contract yet?

[cojak]

Massive alarm bells here. Check out the credit worthiness of the agency, then go direct to client immediately because something is fishy about this.

[SlipTheJab]

Smells like a truck load of haddock to me, do as Cojak says, sounds like the agency are as dodgy as a 3 pound note...

[northernladuk]

Erm.. Hang on everyone.. We are missing a fairly key piece of information...what does the contract say? Is it exactly the same as the one with the agency or is it actually a different animal?

Could be a bonus here. If done properly the agent could have shot himself in the foot to render his contract null and void giving you the opportunity to cut him out and get more money from the client.

[Jase]

Erm.. Hang on everyone.. We are missing a fairly key piece of information...what does the contract say? Is it exactly the same as the one with the agency or is it actually a different animal?

Could be a bonus here. If done properly the agent could have shot himself in the foot to render his contract null and void giving you the opportunity to cut him out and get more money from the client.

Second contract received and read. For the same services but different contract entirely (layout / wording / clauses). No more or less restrictive than the agency contract. Few minor differences (weekly versus monthly payment).

Client is very reputable and so far the agency has seemed above board and professional, happily making my amends to the agency contract.

I can tell the recruiter has forwarded the client contract on to me from the client, as client's details are still in the footer. it just makes no sense contractually.

[northernladuk]

So the client contract is between you and the client? Client pays you directly etc? No mention of an agent? Any contacts at the client you can speak to to try sign this and do away with the agent?

[BlasterBates]

This looks like the client had a problem with an agency in the past and are covering themselves, i.e. they have an arrangement already in place in the event the agency doesn't pay. Highly unlikely they wouldn't entertain a contract with an agency they thought was about to go bust.

See no problem here, in fact quite the opposite, it won't be as messy if the agency goes belly up.

[Jase]

So the client contract is between you and the client? Client pays you directly etc? No mention of an agent? Any contacts at the client you can speak to to try sign this and do away with the agent?

Yep, contract is clearly between two parties, my company and the client. Valid point on the payment of fees, as this remains to the agency (I should have called that out above). Apart from that, there is no other mention of the agency in the client contract.

This is a red flag for me. I don't see how the agent can say this client contract sits alongside the agency agreement as a worst case if something happens to the agency. Payment would still be made to the agency, so of no benefit to me.

[northernladuk]

Yep, contract is clearly between two parties, my company and the client. Valid point on the payment of fees, as this remains to the agency (I should have called that out above). Apart from that, there is no other mention of the agency in the client contract.

This is a red flag for me. I don't see how the agent can say this client contract sits alongside the agency agreement as a worst case if something happens to the agency. Payment would still be made to the agency, so of no benefit to me.

Yeah doesn't sit right with me despite what BB states. Doesn't the contract between the client and agent, which the contractor has no business in also have some bearing here. The client can't pay you direct because the overarching contract will dictate payment to agent. If it goes belly up, money disappears in to agency and no benefit.

I'd speak to QDOS or other contract lawyer about this one.