Bypassing Agency Agreement

**SteveV** · 4 December 2007, 20:01

did you sign the opt-out clause when you first started the contract. I tihnk they are only valid if you ot out of some agency regulations.

**TheFaQQer** · 4 December 2007, 22:05

There's probably more danger of agency going after the client, but they could go after you too if you breach the contract.

It's been discussed on here a number of times, but no idea whether the agent would sue you or not. Some agencies will not bother, some will threaten, some may carry those threats out.

**tim123** · 5 December 2007, 09:56

This would seem to be the client's problem.

If the client has an issue with the agency margin then they should be the one negotiating it down. Assuming that there is repeat business available, they are the one with all the cards here.

HTH

tim

**XLMonkey** · 5 December 2007, 13:03

could they sue?

Yes, probably. If the agent's lawyers were halfway competent then they could sue either you or (more likely) the client.

Don't think that it matters whether you are opted in or out (though often, if you are opted in, there are additional clauses stating the commission that the agency gets if you go into full time employment with the client)

would they sue?

only you (or they!) can make that judgement. it does depend in large part on whether the agent has many other contractors with the client, and how good the relationship is between the agent and the client

does it make a difference if the client terminates the agreement with the agency?

probably not, unless the termination were for breach of contract by the agent (and even then, this might not completely fix the problem).

**bunting** · 7 December 2007, 06:19

Wife is a solicitor, so get her to run through all contracts before I sign anything.
1st contract beginning 2006, wife challenge a 6 month exclusion from working following the contract end saying it would never hold up in court, and JM Contracts agreed that it was not enforceable.
Had this reduced down to 3 months as a compromise.
Say you work for one agency on a contract for HSBC in London for 6 months with 6 month tie in, then have a 3 month contract elsewhere, then offered HSBC contract in Sheffield by another agency.
No way would this stand up. They may threaten you, but if they think you may earn for them in the future, they'll leave you alone.

**darmstadt** · 7 December 2007, 08:37

My latest contract had this stupid clause in it and I pointed out that I already provide service to the company where I am going to contract and will continue to do so after the contract finishes. I got them to change it so that I would not provide services to the same department after the contract finishes. I've had this a number of times with agencies and have got them to take it out before signing. Where I am now there are multiple agencies providing services and a number of them have contacted me about working on different projects but within the same group in the company as they have the exclusive rights to that project. All a bit silly really

**backgetyou** · 20 December 2007, 15:31

Originally posted by niceguyeddie View Post

Hello,

Contractor X has all been at Company X for over 2 years and has worked on 5+ internal projects and have had 5+ renewals.

Contracts have clause in stating

"consultant respects time and expense of agency in getting contract" etc etc
and will not work for company X direct for 12 months following end of contract..."

Consultant has maintained good will with company x through delivering quality service for the last 2 years...agency still only have the gig as company don't want to lose consultant..

Can this clause be enforced as it is obvious that apart from a phone call once every 4-6 months when renewal is due, printout of standard contract with (sometimes!) the correct details on it, payroll service, sometimes getting back to me after promising to chase an issue..??

Also, if the company will no longer do business with the agency but still wants to use my services can the agency enforce this clause and so prevent me from pursuing my business activities freely..?

thanks

Just shut your company down and re-open as a new LTD company. Make sure the new contract is not for any named individual.

**backgetyou** · 21 December 2007, 10:59

Originally posted by darmstadt View Post

My latest contract had this stupid clause in it and I pointed out that I already provide service to the company where I am going to contract and will continue to do so after the contract finishes. I got them to change it so that I would not provide services to the same department after the contract finishes. I've had this a number of times with agencies and have got them to take it out before signing. Where I am now there are multiple agencies providing services and a number of them have contacted me about working on different projects but within the same group in the company as they have the exclusive rights to that project. All a bit silly really

If you have worked for them before the point would not be valid as it would be covered by 'unfair contract' as they did not introduce you.

**Ardesco** · 27 December 2007, 11:19

If opted in they can't enfoce a handcuff clause anyway. If you did not opt out before you were introduced to the client (i.e. interview/phone interview) you are opted in by default. The agency can't opt you out, only you can do it.

If you are opted in just show them two fingers and aks them to take you to court where you will laugh manically as the case is dismissed

Bypassing Agency Agreement