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Is handcuff clause still valid given client-imposed barriers?

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    Is handcuff clause still valid given client-imposed barriers?

    I'm wondering if anybody can help me with a question that I have regarding a handcuff clause in a previous contract.

    BACKGROUND
    ----------

    Without going in to too much detail, up until October 2017 I was working for a client via a particular agency, and had been doing so for around 18 months. The contract that I had in place at the time contained a handcuff clause stating that I could not work for that same client via another agency for 12 months following the termination of that contract.

    During the time that I was working for that client, the relationship between client and agency had deteriorated to the point that in October 2017 I was approached by the client to say that they were looking to sever all ties with that agency, would not be taking on any new/renewed contracts with them, and that my contract was being transferred to another agency. I said that I did not believe this was possible due to the aforementioned handcuff clause, however the client said that they believed it would not be a problem as I had originally gained contact with the client via an old colleague, i.e. not via the agency, who only came along later because the client did not hire directly, and at the time that agency was their preferred agency. Long story short, I was not happy with the whole situation which became very tense over the following two weeks and, feeling extremely uncomfortable in the position in which I found myself, I terminated the contract and found work elsewhere.

    PROBLEM
    -------

    Now my current contract ends in April 2018, and I have been approached again by the previous client saying that they would like me to provide services to them once more. However, as I said earlier, my previous contract contained a clause stating that I would not be able to do that until October 2018.

    QUESTION
    --------

    My question is this: if there is work available, and the client specifically wants me to provide my services to them, but they unequivocally will not deal with the agency with whom I had the contract, then is this still enforceable? I don't really know whether I want to work for that client again, but that's not the point. And I have heard other people say things like these handcuff clauses are not enforceable for longer than the length of the contract at the time (i.e. 3 months), but again that's not the point - I signed the contract and I will abide by the terms that I agreed to unless those terms are now void. I am simply interested in whether this would be enforceable given there is no viable route to that client via the previous agency.

    Many thanks.

    #2
    How will the agency find out? Is that likely?

    If you did have a prior relationship with the client, then you should have asked for the handcuff clause to be removed. Can't do anything about that now but it does make the client's argument a little difficult to defend (lesson for the future!).

    12 months is a little onerous to enforce and you could say that it prevents you earning a living (there's a legal term I forget but others will likely remember).

    October to April is a decent time away from the client so I'd a punt on it if you're happy with all other aspects of the gig.

    Make sure, this time around, you get the handcuff clause removed.

    Comment


      #3
      The agency no longer has access to the site, so you won't be accidentally bumping into anyone and they won't be employing private investigators, so I wouldn't worry about it. Even if they were somehow to find out, it would be unlikely that they'd follow it up.
      I'm alright Jack

      Comment


        #4
        it is often mentioned on here that 12 months is likely unenforceable, and in similar situations, where the client no longer uses the agency at all, the handcuff clause is no longer applicable as you are not causing them (the agency) to lose work/money.

        Comment


          #5
          Handcuffs have been discussed ad-infinitum on here and this exact situation plenty of times.

          Use the google search to dig out the other threads. Type something like the following in to google.

          handcuff site:forums.contractoruk.com
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Look out

            Originally posted by LordWilmore View Post
            I'm wondering if anybody can help me with a question that I have regarding a handcuff clause in a previous contract.

            BACKGROUND
            ----------

            Without going in to too much detail, up until October 2017 I was working for a client via a particular agency, and had been doing so for around 18 months. The contract that I had in place at the time contained a handcuff clause stating that I could not work for that same client via another agency for 12 months following the termination of that contract.

            During the time that I was working for that client, the relationship between client and agency had deteriorated to the point that in October 2017 I was approached by the client to say that they were looking to sever all ties with that agency, would not be taking on any new/renewed contracts with them, and that my contract was being transferred to another agency. I said that I did not believe this was possible due to the aforementioned handcuff clause, however the client said that they believed it would not be a problem as I had originally gained contact with the client via an old colleague, i.e. not via the agency, who only came along later because the client did not hire directly, and at the time that agency was their preferred agency. Long story short, I was not happy with the whole situation which became very tense over the following two weeks and, feeling extremely uncomfortable in the position in which I found myself, I terminated the contract and found work elsewhere.

            PROBLEM
            -------

            Now my current contract ends in April 2018, and I have been approached again by the previous client saying that they would like me to provide services to them once more. However, as I said earlier, my previous contract contained a clause stating that I would not be able to do that until October 2018.

            QUESTION
            --------

            My question is this: if there is work available, and the client specifically wants me to provide my services to them, but they unequivocally will not deal with the agency with whom I had the contract, then is this still enforceable? I don't really know whether I want to work for that client again, but that's not the point. And I have heard other people say things like these handcuff clauses are not enforceable for longer than the length of the contract at the time (i.e. 3 months), but again that's not the point - I signed the contract and I will abide by the terms that I agreed to unless those terms are now void. I am simply interested in whether this would be enforceable given there is no viable route to that client via the previous agency.

            Many thanks.
            Look out a meteor might hit your head while you are walking down the street - you are worrying to much sir

            What was the penalty in your Contract for breaking your "12 Month handcuff clause"

            Let me take a wild guess and say "Nothing" - there is no penalty for breaking this clause in your contract - Is there?

            Comment


              #7
              If the client is confident that there is no risk, then this becomes a lot simpler - just get them to agree to take on the liability if the old agency comes looking for money (including any professional fees to argue the points)

              That way, you'll also find out how confident the client are about their initial assertion.
              Best Forum Advisor 2014
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              Comment

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