I won't tell you what to do as there are so many factors to consider e.g. family, cash reserves, age, attitude to risks etc. However, I will tell you what I would do if I was dead set on jumping into the contract tank.
As discussed, you will fail at the first hurdle with the agent, you are essentially unavailable to work on contract and have almost zero chance of even being put forward to an end client.
Tell the agent you are available at 2 weeks and sound extremely keen to get the contract (tell him you are on a month but have loads of hols saved if pressed). Tell him the dept is being outsourced, end of a project, budget cuts , anything that makes you sound hungry and available.
When/if you actually get offered a contract, go to current employer and claim you have had a very attractive offer, claim it's an old colleague/you weren't looking but got approached (whatever makes you feel better about going). Tell them they want you to start soon and would it be possible to leave in 2 weeks time (don't mention notice period). Promise unpaid support after this time, weekend/evening help, whatever it takes to make you feel better.
You maybe surprised to find they agree to this once they get over the initial outrage, no-one is indispensable, this way you don't hang around being paid for 3 months while upsetting people.
Essentially the 3 months is a deterrent to looking or being offered another role. Once this has failed to deter, there is no point in keeping people to it by threats etc.
Every company knows there is little point in making you stay (although they might produce a counter offer/new position to tempt), but if they play hardball and you still think the 3-month contract is the way to go (this is when people fill their breeks and worry about the future) then walk. The rest is just paperwork and don't expect an invite to the xmas party.
HTH
As discussed, you will fail at the first hurdle with the agent, you are essentially unavailable to work on contract and have almost zero chance of even being put forward to an end client.
Tell the agent you are available at 2 weeks and sound extremely keen to get the contract (tell him you are on a month but have loads of hols saved if pressed). Tell him the dept is being outsourced, end of a project, budget cuts , anything that makes you sound hungry and available.
When/if you actually get offered a contract, go to current employer and claim you have had a very attractive offer, claim it's an old colleague/you weren't looking but got approached (whatever makes you feel better about going). Tell them they want you to start soon and would it be possible to leave in 2 weeks time (don't mention notice period). Promise unpaid support after this time, weekend/evening help, whatever it takes to make you feel better.
You maybe surprised to find they agree to this once they get over the initial outrage, no-one is indispensable, this way you don't hang around being paid for 3 months while upsetting people.
Essentially the 3 months is a deterrent to looking or being offered another role. Once this has failed to deter, there is no point in keeping people to it by threats etc.
Every company knows there is little point in making you stay (although they might produce a counter offer/new position to tempt), but if they play hardball and you still think the 3-month contract is the way to go (this is when people fill their breeks and worry about the future) then walk. The rest is just paperwork and don't expect an invite to the xmas party.
HTH

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