Employee to Contractor

[BadgerDeluxe]

So, I'm currently employed as a consultant by a company (known as BBB), and have been working for one client (known as AAA) for several years on a variety of projects. I wish to become a contractor and contract indirectly to AAA via an agency (known as CCC); and I believe that this is possible. I had planned to do this in the summer, as I have some family stuff going on at the moment which is taking most of my spare time.

However I've recently been told that the consultancy I work for want to second me to AAA and this contract would include a non-solicitation clause:
1. Each Party agrees not to solicit the other Party’s officers, partners and/or employees throughout the term of this Agreement.
2. For a period of 12 months after the end of the Secondment Period, the Host (AAA) shall not induce or seek to induce the Secondee to leave his employment with the Employer (BBB), or employ or engage the Secondee without the Employer’s (BBB) prior written consent.

I'm concerned that this would hamper my plans, and I'm considering becoming a contractor earlier than expected to prevent this clause coming into effect.

Am I worried about nothing? And does anyone have any advice about what I could do?

[jmo21]

If you are already at AAA, I would have assumed something similar was already in place between AAA and BBB?

Have AAA already asked you to come to them via CCC?

[northernladyuk]

So, I'm currently employed as a consultant by a company (known as BBB), and have been working for one client (known as AAA) for several years on a variety of projects. I wish to become a contractor and contract indirectly to AAA via an agency (known as CCC); and I believe that this is possible. I had planned to do this in the summer, as I have some family stuff going on at the moment which is taking most of my spare time.

However I've recently been told that the consultancy I work for want to second me to AAA and this contract would include a non-solicitation clause:
1. Each Party agrees not to solicit the other Party’s officers, partners and/or employees throughout the term of this Agreement.
2. For a period of 12 months after the end of the Secondment Period, the Host (AAA) shall not induce or seek to induce the Secondee to leave his employment with the Employer (BBB), or employ or engage the Secondee without the Employer’s (BBB) prior written consent.

I'm concerned that this would hamper my plans, and I'm considering becoming a contractor earlier than expected to prevent this clause coming into effect.

Am I worried about nothing? And does anyone have any advice about what I could do?

It sounds messy. I would move now to start contracting with AAA if you can.

[BadgerDeluxe]

If you are already at AAA, I would have assumed something similar was already in place between AAA and BBB?

Have AAA already asked you to come to them via CCC?

I've discussed it with some of the relevant managers previously. Though I broached the subject with them.

[malvolio]

Pretty sure the master agreement between AAA and your present employer will contain a handcuff clause anyway. they are not in the business of allowing their employees to steal their business.

Also, stepping from one comfy job to the same comfy job though a different route has a couple of implications: firstly you're not going contracting, you're looking to earn more for the same work, secondly your defence vis-à-vis IR35 will be compromised so you may not get the gains or the freedom you might expect.

You've not said why you feel the need to go contracting nor what you expect to gain. That might be a better starting place.

[BadgerDeluxe]

Pretty sure the master agreement between AAA and your present employer will contain a handcuff clause anyway. they are not in the business of allowing their employees to steal their business.

Also, stepping from one comfy job to the same comfy job though a different route has a couple of implications: firstly you're not going contracting, you're looking to earn more for the same work, secondly your defence vis-à-vis IR35 will be compromised so you may not get the gains or the freedom you might expect.

You've not said why you feel the need to go contracting nor what you expect to gain. That might be a better starting place.

I've not considered the existing contract that I would be working under, however I'm aware of a few people who have moved to contracting like this already.
Additionally, it wouldn't be the same role, AAA is a large organization and I'm looking at a more senior role... which is the main motivation for the move, as I find my career stagnating at my current employer. Together with wanting to give contracting a try for the flexibility.

Other options include a finding a new job and employer or contracting elsewhere... both are on the table, working somewhere within AAA's supply chain or operation would leverage my domain knowledge and contacts to get me a better price (hence the preference), with a reasonable commute.

[malvolio]

I've not considered the existing contract that I would be working under, however I'm aware of a few people who have moved to contracting like this already.
Additionally, it wouldn't be the same role, AAA is a large organization and I'm looking at a more senior role... which is the main motivation for the move, as I find my career stagnating at my current employer. Together with wanting to give contracting a try for the flexibility.

Other options include a finding a new job and employer or contracting elsewhere... both are on the table, working somewhere within AAA's supply chain or operation would leverage my domain knowledge and contacts to get me a better price (hence the preference), with a reasonable commute.

Contractors rarely if ever have a career progression...

And in the current market the rewards of contracting and doing the similar role as a permie will be about the same at the more senior levels, with the latter providing a more stable income stream. My first move would be to approach AAA with a view to a permanent position: that may also quickly clarify any handcuff clause situations.

So be very clear in your own mind about what you are aiming for.

[northernladuk]

Also, stepping from one comfy job to the same comfy job though a different route has a couple of implications: firstly you're not going contracting, you're looking to earn more for the same work, secondly your defence vis-à-vis IR35 will be compromised so you may not get the gains or the freedom you might expect.

You've not said why you feel the need to go contracting nor what you expect to gain. That might be a better starting place.

This for me. I get why you would be in a job like that and want to get paid more for doing the same but it's not an intro to contracting for me. It's soo samey and safe. Once it's over, which it can be very quickly now you've now employment laws protecting you, you are out there with no income and no idea how to get contractor gigs. Not a nice place to be with no warchest and the clock is ticking.

If you are going to go contracting do it properly IMO. This isn't the only gig out there so don't fall in love with it. Bin it off, get yourself a new gig somewhere else and start a long and potentially prosperous contracting career. It's not all about one easy client.

[v8gaz]

More importantly, who refers to their agency as CCC and client as AAA? It's confusing!

[ladymuck]

Other options include a finding a new job and employer or contracting elsewhere... both are on the table, working somewhere within AAA's supply chain or operation would leverage my domain knowledge and contacts to get me a better price (hence the preference), with a reasonable commute.

Interesting. From this I am getting the impression that AAA is your primary/sole intended client and you've not really looked at the wider market? You might want to do that to make sure you can get work elsewhere