Bypass agency and go direct with client

[Slylabs]

This is my first time posting on this forum. I apologise for the long post but I have some questions on whether it is possible to bypass the agency and contract direct with the client.

Here is some background:
I have been contracting with the same client through an agency on rolling contracts (within IR35) and want to renew directly with the client when my current extension ends. Initially I started off using an umbrella company and agency contract included a clause on opting out of the agency regulations. I believe this may have been invalid meaning I'm opted in as you have to formally opt out before being interviewed by the client and offered the role.

Regardless I changed to my own limited company at one of the extensions and the new contract included the usual handcuff clause preventing any relationship with the client without the agency for up to 6 months afterwards. This again may be invalid if I'm opted in.

To further complicate matters, the ltd company contract I signed has expired over 6 months now but I've been offered and accepted extensions since. The agency hasn't issued a new ltd company contract but has been paying my invoices, etc.

The client is happy to deal directly with my limited company as the supplier but obviously there is strong objection from the agency.

Questions:
Does the 8 week limit still apply in this case?
If not then what could the agency do to stop this from going ahead?
What would be the best way to go about this?

Any assistance would be greatly appreciated.

[malvolio]

Quick answer, if the agency are still paying you under the terms of the expired contract, that contract is still in effect and the agency (quite rightly, IMHO) will take any termination as the start of the handcuff period. So the fact you haven't renewed contractually in writing is irrelevant, you have continued to trade as though the contract was still in effect, so it is.

If you are opted in - but make sure - then the handcuff period is limited to 8 weeks (??? from memory, check this point) during which time you cannot work for your client. Does 8 weeks total loss of income make it economically sensible to go direct - in other words do you regain that amount plus some more on your new rate (if there is one) by going direct? And will you be able to manage 90-day payment terms?

If so, you need to give notice to the agency, speak to the client and book a nice long holiday...

[Number9]

I was in the same boat not so long, Agency messed me around over an ex.......... when I knew the client wanted me and need me, so I told the client and said I ain't prepared to work through that agency, goodbye, client came back with go direct, they called the agency and said I'm know longer needed, end of contract.

Company sent me a new contract next day with what they were paying the agency.

They have loads of contractor and they do this all the time, and they said if the agency finds out then we never put business they way again, so tough we aint losing you. Don't worry about any handcuff clause

I think the agency knew as well, because they just sent me a nice letter thanking me, no phone call about any other contracts.

I reckon the girl who gave me the usual b+lls+it story got a right dressing down, she lost a contractor and contract

Made my day ! been in the contract a few months now and no come back, so happy days.............

[XperTest]

It's easy for the client to say they can put pressure on the agency by not hiring through them anymore, but you are in breach of contract (too), not (just) them. What will you do when the agency will come knocking? Will the client help you out when the agency only go after you and not after them..? Not very likely.. Since in your case it's a couple of months ago you may be home and dry, but I think your sense of security was not completely justified..