Clause question in contract

[curtis]

Trying to get my head round this clause -

The Consultant agrees that for a period of one year after termination of this Agreement howsoever arising they shall not in any capacity provide services the same or similar to the Services provided under this Agreement whether directly or indirectly to the Client or any customer or client of the Client

So my understanding of this is once this contract is over and I leave I cannot return for a year. Where I am over thinking this is, if they want to extend me and I want the contract changed would that be the termination of the original contract as effectively the changes would make it a new one?

[TheFaQQer]

Trying to get my head round this clause -

The Consultant agrees that for a period of one year after termination of this Agreement howsoever arising they shall not in any capacity provide services the same or similar to the Services provided under this Agreement whether directly or indirectly to the Client or any customer or client of the Client

So my understanding of this is once this contract is over and I leave I cannot return for a year. Where I am over thinking this is, if they want to extend me and I want the contract changed would that be the termination of the original contract as effectively the changes would make it a new one?

Technically, yes, it would be a new contract rather than an extension to the existing one / a new schedule of works.

[curtis]

so on that basis how would I actually be able to get an extension with that clause in it other than making sure the schedule is spot on the first time it gets signed?

[northernladuk]

The latest contract should supersede the last one so if you get it down to 6 months in the extension contract that will be the last agreement. Be prepared for the agency to not back down on this one though. 12 months is unenforceable as is a blanket ban. The handcuff is only valid to cover the agent from loss by you going direct. If you can get in to do some work the agent wouldn't be involved in the handcuff shouldn't fly. The reality of it is there will be a lot of handbags and you might get passed over just to avoid the arguments and threats.

Have a search for handcuff on the forums. Discussed a lot on here.

[malvolio]

You can return, but with the same agency. It's called "protecting the revenue stream". However, 12 months is unreasonable unless you are something very special to the client (and not, note, the agency, they can earn their own crust), so probably unenforceable in court. 3-6 months - again depending on your commercial value to the client's competitors - is the practical limit.

[curtis]

I have read other posts on that clause specifically and understand it might be classed as a restriction of trade.

I've never had a clause for a year in the contract before so keen to get it changed but confusing myself a small bit on the implications that if someone didn't and then decided they wanted it changed later if they did then offer an extension.

I am kind of seeing it as then that's a new contract/schedule and given that clause you would not be able to take it even if I wanted to.

[ContractorsSpouse]

I think I see your point now; the wording above implies that once the current contract is terminated you can't even get a new contract with the intermediary you're currently contracting with.

I'm sure that's not the intention, this clause would be to prevent you working either directly with the end client, or through some other intermediary.

[TheFaQQer]

I think I see your point now; the wording above implies that once the current contract is terminated you can't even get a new contract with the intermediary you're currently contracting with.

I'm sure that's not the intention, this clause would be to prevent you working either directly with the end client, or through some other intermediary.

This.

Ask the agent to read that clause carefully, since it prohibits you going back to the client through them as well. Absolutely not what they intended - they want to stop you bypassing their cut, nothing more than that.

[curtis]

The clause does make it sound that you cannot go back at all, as in the clause that's in my contract it states going back 'Directly' or 'Indirectly' would there therefore not be an added bit that sates 'unless going back with the same agent/supplier' if you can go back in that time as long as it was with them ?

Just seen the 2 posts above after I sent this. This I think was what was confusing me a tiny bit!!

[bless 'em all]

Don't sign the OPT OUT document they've no doubt presented you with in conjunction with the contract - if you don't opt out that clause will be null & void (IIUC).