Going direct with client

[Jay01]

I left a client earlier this year which I had worked via an agency. Although I had left a couple of months earlier than when my contract actually expired (I ended the contract). I have been contacted by the end client to see if I can help them out during a busy spell (1 month contract) however there could be a possible extension. I wondering if I can work directly with the client and bypass the agency or possibly pay 15% value of the 1 month contract but should there be an extension, I would not be liable to pay the agency this amount?

My contract term states:

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 a contract through (agency) unless the Supplier shall first have paid to (agency) a fee of 15% of the total remuneration including the value of benefits attributed by the Inland Revenue agreed to be paid or provided by the Client of End User for the relevant period of provision of such services (but not exceeding 12 months) plus VAT;

Any advise would be useful

Cheers,

Jay R.

[craig1]

Were you opted-out of The Conduct of Employment Agencies and Employment Businesses Regulations? If you didn't opt-out then there's very little to stop you going direct to the client, despite what the agency may threaten. Edit: That said, the agency may have a contract with the client that prohibits them taking on ex-contractors directly.

If you did opt out then your options are more limited. If you signed as a company and you really wanted to avoid the agency then you could start a new company!

[SueEllen]

If you are not opted-in and you last worked at the client 6 months ago or longer, go ahead and work for the client.

If the agency contacts you tell them to do one. If they threaten you get a letter from a solicitor pointing out a term of a year is a restrain of trade.

[Jay01]

Yes I did opted out. However would restraint of trade be valid if the term (as above) only restricted you from working for just that client?

[northernladuk]

Were you opted-out of The Conduct of Employment Agencies and Employment Businesses Regulations? If you didn't opt-out then there's very little to stop you going direct to the client, despite what the agency may threaten. Edit: That said, the agency may have a contract with the client that prohibits them taking on ex-contractors directly.
If you did opt out then your options are more limited. If you signed as a company and you really wanted to avoid the agency then you could start a new company!

The bolded bit is a good point, whatever the legalaties the client may not want to get in to a fight with the agent and vice versa. The client of course may not give a monkies and be glad to be rid of them.

Closing down the company will not work. Wanderer explained this very well but I can't remember the wording. You are still breaking the spirit of the clause and using some devious method to change company names will not absolve you.

If they threaten you get a letter from a solicitor pointing out a term of a year is a restrain of trade.

This +1. It has been discussed a few times and the general concensus seems to be anything over 6 months will not be enforceable. I would have thought it would have been valid for all clients in the wording of the clause. It looks like in this case it is the client or end suppliers.

Has the client actually mentioned anything about how you would be engaged? Have they actually given you the option to come direct or do they assume the same setup would be used. I would find this out first before I started worrying about options you may not have.

[Jay01]

Thanks, the client wondered if I can come direct (for my benefit).

[DodgyAgent]

The enforceability of this contract is down to this:

a fee of 15% of the total remuneration including the value of benefits attributed by the Inland Revenue agreed to be paid

The contract actually specifies the penalty or the "charge" which is much more likely to hold up in a court

[Jay01]

If indeed the contact with the end client was a very short contract i.e. 4/6 weeks...if I paid the agency 15% value of that contract, would I be owing them if there was an extension after the 4/6 weeks contract?

Cheers,

Jay

[JamJarST]

Thanks, the client wondered if I can come direct (for my benefit).

And his benefit too, don't be fooled.

[SueEllen]

If indeed the contact with the end client was a very short contract i.e. 4/6 weeks...if I paid the agency 15% value of that contract, would I be owing them if there was an extension after the 4/6 weeks contract?

Cheers,

Jay

Yes.