Contract Restriction!

**chef** · 14 February 2014, 15:15

exactly, standard stuff in my experience.

Stops you finishing your 3 month contract and then cutting the agent out of the loop and going direct the following Monday to increase your take and decrease the end clients rate meaning everyone but the agent is a winner.

**Clare@InTouch** · 14 February 2014, 15:16

That's pretty normal to see in any contract, and it prevents you from going direct to the client or anyone else who you've come to know through the agency without the agency getting their cut.

If you've not Opted-Out then I believe they cannot restrict you for quite so long, and in some cases you can argue unfair restraint of trade if you end up in Court over it!

**Bones** · 14 February 2014, 16:45

The contract states in many places that I will be opting out! I have asked for that to be removed

With regards to the restriction, I had no design to go around the agent however in terms of a ltd company they are an unnecessary link in the chain. The client has chosen to involve an agent in the process because they normally do for most recruitment so it is reasonable that the agent is compensated for the introduction but anything beyond that is just leeching. So I would see it as an extremely unfair restraint of trade!

**malvolio** · 14 February 2014, 16:56

Originally posted by Bones View Post

The contract states in many places that I will be opting out! I have asked for that to be removed

With regards to the restriction, I had no design to go around the agent however in terms of a ltd company they are an unnecessary link in the chain. The client has chosen to involve an agent in the process because they normally do for most recruitment so it is reasonable that the agent is compensated for the introduction but anything beyond that is just leeching. So I would see it as an extremely unfair restraint of trade!

It's more than that. The handcuff is to protect their investment in getting the revenue stream. If you brought in the business, they don't have an investment so have nothing to protect so the whole idea is irrelevant. Tell them to drop it completely and maybe spend some time with a contract law casebook.

**Bones** · 14 February 2014, 17:40

So basically they are an unnecessary part of the process, expect you to give away all your rights by opt out and forcing you to sign up to long term restrictions to prevent you from working with any company you come into contact with!! 'Pimps' would seem complimentary.
P.S. Are you suggesting the paragraph has no real basis in law anyway?

**malvolio** · 14 February 2014, 17:53

Originally posted by Bones View Post

So basically they are an unnecessary part of the process, expect you to give away all your rights by opt out and forcing you to sign up to long term restrictions to prevent you from working with any company you come into contact with!! 'Pimps' would seem complimentary.
P.S. Are you suggesting the paragraph has no real basis in law anyway?

I won't say no basis at all, since I'm not a lawyer, but it would fail any test of "reasonableness", which is how such things are judged.

**Wanderer** · 14 February 2014, 23:11

Originally posted by Bones View Post

The contract states in many places that I will be opting out! I have asked for that to be removed

Refusing to opt out will force them to strike that clause out anyway because restrictions of that length are not allowed by the Agency Conduct Regulations.

1. Make sure they remove ALL references to the opt out
2. Demand that they remove the restraint of trade clause completely (they may try to water it down)

They will scream and wail and drag their feet but keep banging on their heads until they do what they are told. If they dick you around too much then tell them you are going to have a talk to the client about using an alternative agency because they are being unreasonable.

**Bones** · 17 February 2014, 11:33

Originally posted by Wanderer View Post

Refusing to opt out will force them to strike that clause out anyway because restrictions of that length are not allowed by the Agency Conduct Regulations.

1. Make sure they remove ALL references to the opt out
2. Demand that they remove the restraint of trade clause completely (they may try to water it down)

They will scream and wail and drag their feet but keep banging on their heads until they do what they are told. If they dick you around too much then tell them you are going to have a talk to the client about using an alternative agency because they are being unreasonable.

Thanks for that, I have just looked again and the contract is headed with "Agreement with self-employed consultancy who has opted out of the conduct regulations (outside IR35)"

I have just spoke to the agent and he asked me why I didnt want to opt out and told me it was a pointer for IR35. I disagreed with everything he said so he agreed to change it. I also pointed out the six month restriction which he said was an agreement with the client! I told him it contravened the regulations, he said he would change that as well! I will have to see what he sends through next, I start tomorrow!

**kevpuk** · 17 February 2014, 12:12

Originally posted by Bones View Post

<snip>"Agreement with self-employed consultancy who has opted out of the conduct regulations (outside IR35)"<snip>

I have just spoke to the agent and he asked me why I didnt want to opt out and told me it was a pointer for IR35. I disagreed with everything he said so he agreed to change it. I also pointed out the six month restriction which he said was an agreement with the client! I told him it contravened the regulations, he said he would change that as well! I will have to see what he sends through next, I start tomorrow!

Nothing, really, to do with IR35, however most Agents say/believe they are doing you a favour in relation to IR35.
If they really do remove it all, happy days, assuming you don't want to opt-out....

Contract Restriction!