Terminating a Contract

[mylesmax]

I am posting on behalf of my husband and we need some advice on terminating an agency
contract.

He has worked on a rolling contract for the same company through an agency for 11yrs.
He was under an umbrella company but 3yrs ago he went LTD

He would like to terminate this contract and work direct for the company
Would this be possible?

[Old Greg]

I am posting on behalf of my husband and we need some advice on terminating an agency
contract.

He has worked on a rolling contract for the same company through an agency for 11yrs.
He was under an umbrella company but 3yrs ago he went LTD

He would like to terminate this contract and work direct for the company
Would this be possible?

Are you looking for a yes or no?

What does his contract say? Also what does the client's contract with the agency say?

[BrilloPad]

I am posting on behalf of my husband and we need some advice on terminating an agency
contract.

He has worked on a rolling contract for the same company through an agency for 11yrs.
He was under an umbrella company but 3yrs ago he went LTD

He would like to terminate this contract and work direct for the company
Would this be possible?

yes. but there is probably a restrictive clause in the contract (have you checked?). So he will probably have to pay off the agency. Or the client will. Or possibly both. If the client uses the agency for other contractors they might be able to bring pressure to bear.

why does he want to switch after 11 years?

[garethevans1986]

Read the contract he signed with the Agency, it may have a "handcuff clause" saying he cant work for the same client without going through the agency for the next x months.

GE

[mylesmax]

Hello there thank you for your advice, I'm the hubby btw
I have worked for the same agency as my wife said for 11/12 years
When I went ltd 3 years ago the agency sent me a new contract, I never signed it could this be my legal get out ?
I still have both copys un signed
I just continued working the same way since now

Hope you can help or put me in contact with somebody who can

Thanks Max

[northernladuk]

Hello there thank you for your advice, I'm the hubby btw
I have worked for the same agency as my wife said for 11/12 years
When I went ltd 3 years ago the agency sent me a new contract, I never signed it could this be my legal get out ?
I still have both copys un signed
I just continued working the same way since now

Hope you can help or put me in contact with somebody who can

Thanks Max

By continuing to work after you have seen the contract you have accepted its terms and conditions so that won't work. You have an implied contract which is just as binding.

Negotiation is the only way out of this one. Any legal avenues will probably miss the client and agent of and they both dump you.

If the client wants you they will be happy to pay the agent a fee so would approach them to see if they can work something out with the agent. If the agent has many other contractors the client may be able to swing it based on future business for the agent.

Rolling 11 year contract? How did that go down WRT IR35 while ltd? You could almost argue you are an employee of the company after that amount of time.

[BolshieBastard]

I am posting on behalf of my husband and we need some advice on terminating an agency
contract.

He has worked on a rolling contract for the same company through an agency for 11yrs.
He was under an umbrella company but 3yrs ago he went LTD

He would like to terminate this contract and work direct for the company
Would this be possible?

If he's been working on contract for over 11 years with the same client (not just agency), he very likely IR35 caught as part and parcel of the client's organisation. Staying ltd will result in massive back tax and potential penalties if he is IR35 investigated.

[Wanderer]

When I went ltd 3 years ago the agency sent me a new contract, I never signed it could this be my legal get out ?

Nope, by your dealings you have demonstrated that you have accepted the contract.

If you want to cut out the agency then you should have a chat with the client about it. A few clients will let you work direct but most clients want an agency in the loop as it may provide some protection if you were (for example) to claim that you have been a disguised permie for years and want all the permie rights or take them to a tribunal. Not to suggest that you would, of course.

How much margin is the agency taking? I presume that after all these years it's pretty small. Why do you want to go direct?