Possibility of changing Agent

[Gosman00]

My Contract is due to expire at the start of March. The client I have been working for is more than happy to renew me for another 6 months (I have already been onsite for almost 2 years). The problem I have is the agency I am contracted through is the pits and I don't feel like I can work with them again. Even given the fact that they are on over 30 percent margin (I know that it really has nothing to do with me) I just feel they couldn't care less whether I exist or not beyond me sending in my timesheets on time.

I would very much like to change my agency. One contractor who has worked at the Client site has achieved this before but my situation may be more complicated in that my Agency is a Consultancy and they have some permanent members onsite as well.

My understanding is that there was a law change last year that made this sort of thing easier for Contractors to do. My Agency had a clause in my current contract which apparently is superseded by the new law. The Agency has decided that all new contracts they will offer to contractors will state the Contractor wishes to opt out of the new law (I think). However I have not signed any such contract so I don't believe I am bound by this.

My question is whether people believe there is any major obstacles stopping me changing the Agency I work through and if anyone can offer any advice on how the best way to approach this would be.

[malvolio]

Quick answer

Talk to the client. Explain why the agency is stiffing them and why you are unlikely to want to renew through them. The agency will suddenly discover they have two choices - give you a better cut on the overall charge or not have income at all. Guess which they'll take.

If your contract has a handcuff clause then it will be difficult to change from one agent to another for what is effectively the same role in less than 6 months. So use the client's buying power either to get a better agency deal or ditch them altogether.

[JS]

Re: Change of Agency

You will find that your company probably cannot change agencies like this, the handcuff may still apply as the contract was before the law change, not sure about this.

However, YOU can resign from your company - in fact no one can stop you resigning from any company, slavery was outlawed in this country a while ago even though it may not feel like it sometimes. Then you can start work for another company which is NOT bound by the handcuff clause.

See a lawyer and get it sorted.

[Freddy3000]

Re: Change of Agency

However, YOU can resign from your company ... Then you can start work for another company which is NOT bound by the handcuff clause.

Every contract I've ever had has precluded this though. Remember, these guys make contracts for a living & will have every base covered. I doubt there's any way for you to just decide to ignore the contract (it is a contract after all), because then we'd all be doing it.

You're best bet is to talk about it with the client (which is also usually forbidden by the contract), and see if they're willing to hire you directly without telling the agent. That comes with its own risks, though it's unlikely the agent will ever find out.

[JS]

Re: Every contract I've ever had has precluded this though.

They can't.
It is the law.
NO company, even one you own, cannot force you to continue working for them if you don't want to. They CAN force you to work a reasnable notice period, which IIRC is limited to your pay-period but cannot exceed 6 months.

[Freddy3000]

Re: Every contract I've ever had has precluded this though.

Which law? Of course they can't force you to work for them, but they can stop you from setting up a new company and taking over the existing work that they found for you in the first place. If this wasn't the case how would agencies ever stay in business?

[DodgyAgent]

The problem I have is the agency I am contracted through is the pits and I don't feel like I can work with them again

How is this manifested?

[Viking]

You need to speak with a lawyer, but as someone who has contracted for over 20 years, let me say that to my knowledge no agency has ever succesfully sued a contractor for going direct after the contract has expired.

Contract law is very specific about this, a contract is only valid for the duration of the contract. If the agency wishes to impose 'handcuffs', you have to sign another contract AFTER the completion of the current contract and for the new contract to be valid, a 'consideration' has to be paid - in other words they have to pay you to NOT work at the client.

Where there can be difficulties is with the client, their contracts are broader, especially if the agency has multiple contractors on site. If the client is willing to take you on direct, then the risk is theirs, not yours.

Oh! and as to your comment of why agencies can do this, it's because of freelancers like yourself who have little or no understanding of contract law, yet sign contracts without taking any legal advice or understanding what you are signing and whether it's legal or not.

[IsItOver]

Human Rights Act
Restraint of Trade

[Freddy3000]

And exactly how are your human rights affected by stealing from your agency?

You simply cannot decide to ditch your contract and decide to go direct - even if you do set up a new Ltd. company to hide behind.