New Outside IR35 contract with the same client, but not via agency

[rorybracker]

Currently I work via my LTD company and have a contract with the recruitment agency who I bill on monthly basis. The recruitment agency have a contract with the end client to whom I provide my IT services.

The End client have decided to engage with me as a service provider directly starting from April and want to issue Outside IR35 contract. And here`s the problem: my current contract with the recruitment agency prohibit me to work for End client directly for 6 months after the end of current contract.

Has anyone come across this issue? And most importantly how did or would you resolve this?

Thanks

[northernladuk]

We've had this one a million times. Use the google search method and type in handcuff site:contractoruk.com/forums. People may not be so willing to go over it yet again in detail so have a look at the threads in that search.

In a nutshell if the client wants you direct then they have to negotiate you out of the handcuff. They may have to buy you out or they will just strong arm the agent in to letting you go without a fuss. Either way, you are caught by the handcuff so get the client to sort it.

[zonkkk]

Yes, tell the client you can't sign directly.

If they really want you, they need to put their weight behind you and sort out some sort of arrangement with the agency where the agency releases you from that clause. The agency might want some sort of pay-off which you can negotiate then.

[malvolio]

Yes, tell the client you can't sign directly.

If they really want you, they need to put their weight behind you and sort out some sort of arrangement with the agency where the agency releases you from that clause. The agency might want some sort of pay-off which you can negotiate then.

No, the client needs to negotiate that since that is the contract that is being restated. All the OP is doing is leaving the agency, he is not liable for losses created by the client's decisions.

[rorybracker]

I have been offered by the End client to negotiate this matter separately with the Recruitment agency. Talking to the Agency rep. it looks like they are going to propose some sort of a "contract find fee" to be paid to them on monthly basis depending on number of days worked. Not sure how this is going to work though, but will post update later.

[ladymuck]

We've had this one a million times. Use the google search method and type in handcuff site:contractoruk.com/forums. People may not be so willing to go over it yet again in detail so have a look at the threads in that search.

In a nutshell if the client wants you direct then they have to negotiate you out of the handcuff. They may have to buy you out or they will just strong arm the agent in to letting you go without a fuss. Either way, you are caught by the handcuff so get the client to sort it.

Maybe we need a sticky about handcuff clauses. It'll be about four lines long but it seems to be something that keeps being asked and no-one seems to be able to find.

[northernladuk]

Maybe we need a sticky about handcuff clauses. It'll be about four lines long but it seems to be something that keeps being asked and no-one seems to be able to find.

That would be an idea. It would probably go the same way as the security one did though. My situations is different because of xxxx.. Nope no it's not. Read it again.

[eek]

Or we could have a locked sticky of frequently asked questions

with each question given it's own post.

[northernladuk]

Or we could have a locked sticky of frequently asked questions

with each question given it's own post.

All starting with caveat to do a search and ask your accountant before proceeding

[malvolio]

I have been offered by the End client to negotiate this matter separately with the Recruitment agency. Talking to the Agency rep. it looks like they are going to propose some sort of a "contract find fee" to be paid to them on monthly basis depending on number of days worked. Not sure how this is going to work though, but will post update later.

So they have terminated the deal with the agency, want you to sort out the detail and pay the agency for their lost business...

Seems completely fair to me