Common Contract Changes requested on contracts

[gamble1234]

All, recieved my contract which has the standard text. However in some areas I think the agent is trying their luck, for example....

not during the Contract Term or thereafter for a period equivalent to the period of this agreement (but not being less than 3 months nor more than 12 months) either directly or indirectly (whether under a contract of services or contract for services or through any third party) provide any services to the Client or End User except by contract through the Agency unless the Supplier shall first have paid to the Agency a fee of 20% of the total remuneration including the value of benefits attributed by HM Revenue & Customs agreed to be paid or provided by the Client or End User for the relevant period of provision of such services (but not exceeding 12 months) plus VAT;

What period is acceptable, have people negotiated on this term?

What other clauses are the ones to look out for?

Thanks in adv

Gamble

[gamble1234]

anyone?

[oversteer]

Seems pretty standard to have that clause, although a one-off fee is a bit weird.

The agent has "introduced" you so expects a cut of your income, now and at renewal. The 'fee' is obviously just to put you off doing it. I doubt they'll negotiate much over that one.

[pmeswani]

anyone?

Some posters here may say that 12 months is unenforceable, but if you are not happy with 12 months, you can try and negotiate for 6 months. But on the same token, if the agent is barred from representing any candidates for any roles with the client you are hoping to work for, then it does beg the question on whether the clause has any effect. I don't know the answer to that, so best of luck.

[singhr]

Standard clause in most agency contract arrangements I have been involved in.

[oversteer]

I would have thought it's enforceable, it's not a contract of employment, it's a commercial contract between (presumably) two companies.

[SueEllen]

gamble1234 if you are opted-in then ignore the clause and don't worry about it as it doesn't apply. (Unless you want to set up an agency or provide workers yourself to the client via your limited company. )

If you are opted-out then you can either ignore it or be prepared to pay a solicitor in the worse case to argue that only the minimum term applies as the clause is:
1. Written badly so only 3 months would apply if any time applies.
2. 12 months is a restrain of trade as the clause is not written specifically to your company and the end client particularly if the end client is a large company.

In the case where the end-client gets rid of the agency but not you, then as the agency hasn't made a loss due to your actions there is nothing they can go after you for.

[amcdonald]

Do you know the agency markup, if its more than 20% then worst case you're quids in whatever happens

Also if the supplier is named as your company rather than yourself, then setting up a new company would get round the problem...

[NotReallyButSeriously]

I queried this with the board a while ago as well, most said it was just a standard clause, however mine was worded weird and wanted a fixed percentage of 30% of a yearly wage.

Doesn't really bother me too much as the agency seem good, and I can't see why the client would need me back in that line of work after I've finished.

[escapeUK]

I would have thought it's enforceable, it's not a contract of employment, it's a commercial contract between (presumably) two companies.

So just dissolve your Ltd company, make a new one and it doesnt matter?