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Restraint of trade

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    Restraint of trade

    Hi There,

    I have previously provided services to a company through one agency & now the client has contacted me about going back to contract for a different department but I have a clause in the original contract regarding providing service through other companies in which it states that they expect 20%.

    Are these clauses legal? Do they stand up if challenged?

    Thanks

    Steve

    #2
    Originally posted by SRuston View Post
    Hi There,

    I have previously provided services to a company through one agency & now the client has contacted me about going back to contract for a different department but I have a clause in the original contract regarding providing service through other companies in which it states that they expect 20%.

    Are these clauses legal? Do they stand up if challenged?

    Thanks

    Steve
    How long since you left?
    Let us not forget EU open doors immigration benefits IT contractors more than anyone

    Comment


      #3
      And how long was the clause in the original contract. If the original clause was not legally enforcible, the whole clause may be invalid.

      Comment


        #4
        If the client is a big user of the agency they might be able to get it waived.

        Comment


          #5
          Originally posted by SRuston View Post
          Hi There,

          I have previously provided services to a company through one agency & now the client has contacted me about going back to contract for a different department but I have a clause in the original contract regarding providing service through other companies in which it states that they expect 20%.

          Are these clauses legal? Do they stand up if challenged?

          Thanks

          Steve
          Hi SRusten,

          To be blunt. Yes then can.

          However, this will be limited in time and depend whether you have opted out of the Conduct of Employment Businesses and Agencies Regulations.

          Should you have not opted out then a strict time frame will apply:

          (a) an 8 weeks period commencing on the day after the day on which you last worked for the client; or

          (b) a period of 14 weeks commencing on the first day which you were introduced.

          Should you have opted out of the Regulations then, no restriction will apply, as long as these are reasonable. These usually range from 6 to 12 months.

          Check your Contract.

          Note should have not opted out the restriction period found in your client's agreement will not matter. Your restriction will also apply to the client and the agency may not apply a longer restriction on them.

          Hope this helps.

          Mardi

          Comment


            #6
            Originally posted by contractreviews.co.uk View Post
            Hi SRusten,

            To be blunt. Yes then can.

            However, this will be limited in time and depend whether you have opted out of the Conduct of Employment Businesses and Agencies Regulations.

            Should you have not opted out then a strict time frame will apply:

            (a) an 8 weeks period commencing on the day after the day on which you last worked for the client; or

            (b) a period of 14 weeks commencing on the first day which you were introduced.

            Should you have opted out of the Regulations then, no restriction will apply, as long as these are reasonable. These usually range from 6 to 12 months.

            Check your Contract.

            Note should have not opted out the restriction period found in your client's agreement will not matter. Your restriction will also apply to the client and the agency may not apply a longer restriction on them.

            Hope this helps.

            Mardi

            Is your second name Grass?
            Let us not forget EU open doors immigration benefits IT contractors more than anyone

            Comment


              #7
              Originally posted by DodgyAgent View Post
              Is your second name Grass?
              ..or bum
              Moving to Montana soon, gonna be a dental floss tycoon

              Comment


                #8
                Originally posted by contractreviews.co.uk View Post
                Hi SRusten,

                To be blunt. Yes then can.

                However, this will be limited in time and depend whether you have opted out of the Conduct of Employment Businesses and Agencies Regulations.

                Should you have not opted out then a strict time frame will apply:

                (a) an 8 weeks period commencing on the day after the day on which you last worked for the client; or

                (b) a period of 14 weeks commencing on the first day which you were introduced.

                Should you have opted out of the Regulations then, no restriction will apply, as long as these are reasonable. These usually range from 6 to 12 months.

                Mardi
                Can someone tell me where I can find this more formalised? With all respect to Mardi, my agency aren't going to take the fact that I found this on a forum as very strong evidence.

                Also, which clause applies? 8 weeks from end, or 14 weeks from start? I'm assuming it's whichever is later, but I'd like to be sure.

                Comment

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