Newbie - letter of intent

[GCR99]

If this is your current permie employee, i'd be thinking in this climate why your current employer is 'allowing' you to go direct?

Quite!. Sounds like constructive dismissal, they want you out but don't want to go down the redundancy route. Give you the contract carrot then can you in a couple of months "when the budget didnt get approved"

be careful amigo

[king132]

I appreciate the concerns but i dont think it is a case of them trying to get me out (i hope not anyway). Infact it was me that has been pushing them to go this route.

Ive been working in my current role for just over 4 months, i was offered a year extnesion about a month ago at this point it would have continued through my Recruitment company but having found out my rate and considering my main cost at the moment is my petrol to work (over 60 miles daily which i cant claim) i'm hoping that going through a LTD will leave me financially slightly better off.

The companys procurement dept have strongly suggested to my manager not to go this route and to continue through my recruitment company as they get favourable rates. Over the last 2 weeks i must have sent 20 emails to my manager convincing her that me setting up a LTD would financially benefit both of us..they pay less than they would to the RC and i get slightly more and be able to claim expenses.

Some ppl have mentioned IR35 now and i have looked into this...my role has changed from what i started off here doing (theyve been very happy with what ive done, they have even been training me on SAP). The new contract is only for 12 months and will involve travelling to different locations and getting involved in other apsects of what the compnay does. I guess my point is that i am going to try and stay outside of IR35, my managers pretty cool and will let me work at home some days if i need but i will cross that bridge when i get to it

[Manic]

Err hang on

Recruitment Company = Agency

Is this simply a push the agnecy out exercise?

[The Wikir Man]

Would anyone like to comment on what the letter of intent is all about? Any traps to watch for? I've just shrugged and signed them in the past. I don't know if that's good advice or not though.

It's meant to scare you into committing to work there. However, unless there is any consideration (e.g. payment for you signing the intention), then it's legally worthless.

I should’ve given a bit more background info. I'm currently contracting through a Recruitment Company, I've found out what my rate is and I’ve negotiated with the company (my manager) for me to work for them directly through my own LTD.

OK, so you are through an agency. What does your contract say about going direct? Did you opt out (in writing) of the agency regulations before meeting the client?

More importantly, what does the client's contract between themselves and your agency say about them poaching you?

[king132]

I dont see it as push out the Agency exercise...i see it as me trying to take iniative to try and improve my own situation.

Ive taken legal advice and have been told that my contract with the Agency does state that if i go from agency to company then there is a fee payable to the agency. However if i was to take some time off get other employment and then go back to the company then that could be a way around it.

[The Wikir Man]

I dont see it as push out the Agency exercise...i see it as me trying to take iniative to try and improve my own situation.

Ive taken legal advice and have been told that my contract with the Agency does state that if i go from agency to company then there is a fee payable to the agency. However if i was to take some time off get other employment and then go back to the company then that could be a way around it.

Make sure that you understand fully what "some time off" may incur - if you are opted into the agency regulations, then it's 6 weeks (IIRC). If you aren't then you need to look at your contract, the client needs to look at their contract with the agency, and you need to take proper legal advice about whether any clause would be considered reasonable by a court.

If there is nothing in your contract, and it's in the client contract, then it's their problem, not yours. However, I don't think I've seen a contract which had less than 6 months restriction before going direct.

[stingman123]

Isn't there anything in your current contract to prevent this from happening?agencies take a very dim view on this kind of behaviour

[Olly]

I love the way there is post after post from people who've not read what's going on and Northernchappy preaching about how the mindset of not being a employee is so blinking vital when it really isn't that crucial.

Before you go ANY further look carefully into the legal side of pissing on the agency.
If you intend to work elsewhere then for how long exactly?
Will the role still be there when you're done? (I doubt it)
Will this manager be able to run roughshod over procurement? Again I doubt it?

....client training you is unlikely to be good for IR35 but like most of us, just keep your head down and do what you can to ensure contracts and work practices fall outside. I'd be loather to rock the boat with any client who trained me up in SAP, it's a bloody goldmine!

[king132]

First off thanks to all who have replied. I know ppl will see this as me trying to fob the agency off so i can earn a few quid extra and even though this is partly true i can actually see potential for growth in this role and i'd rather not be tied down to the agency.

I'm going to get a lawyer friend to go through my contract, but i'm guessing there will be a clause which states something about 6 month gap (which someone mentioned) in which case my idea of taking other employment for 1-2 weeks and then coming back wouldnt work and all this fuss would have been for nothing.

Does anyone have a rough idea/ calculation of how much it would cost my employers to go perm from the agency - i doubt they would stump up the cash for it but i might consider paying the fee myself if its viable

[The Wikir Man]

Does anyone have a rough idea/ calculation of how much it would cost my employers to go perm from the agency - i doubt they would stump up the cash for it but i might consider paying the fee myself if its viable

I'd guess somewhere in the region of 6 months commission, whatever that may be. Vague guess - 12x daily rate (6 months, 10% commission). May be higher or much lower - I honestly have no idea, but that's my initial guesstimate.