Background:
I have worked self employed via Agency 1 for the last 8 years on and off, my last contract being me -> agency 1 -> large amercian software house -> swedish end client (well known for bookcases called billy) being a 3 monther extended and extended to 2 years which ended Dec 1st last year.
I have been aproached for a new contract for end swedish client however they have changed their internal workings and reduced the PSL list. I informed them I was under a tie in clause via agency and they are under a tie clause with software house preventing me from going direct for 6 months. After a few days they have come to an agreement with large amercian software house to release me from my 6 month tie in clause and have told me that I will be contacted by one of their in country PSL brokers (lets call them agency 2). Since arrving in the country I have setup a local Ltd equivalent and intend to work via that for the foreseeable future (for tax reasons).
It seems no one has told Agency 1 this. I have had a phone call from hriing manager of swedish client and they have offered me a 50% rate increase. I have forwarded the email i received from swedish client stating "swedish client to american software house have come to an agreement i am not tied in to software house for 6 months" to agency 1 when i was asked "whats the latest with the renewal, have you heard from end client, i am pushing this from my end". Agency 1 then replied with "it would be good to run through them (agency 2), what is the hiring manager at swedish client called, strangely our contractual clause is the same as large american software house when it comes to going direct".
So, my questions being, Agency 1 obviously wants their cut or to muscle in on the action, how would you approach this? I know what rate i have been offered from swedish client, i also know agency 2 charge 1.5% on top to bill swedish client. I am reluctant to reduce that rate to give a part to agency 1 when they have done nothing in terms of the 5 extensions and 2 new contracts i have secured with end swedish client over the last 2 years. Does agency 1 have any legal retribution if I am now living in a different country and also working via my newly setup swedish co. ?
I always had a very good working relationship with agency 1 and I did point out to swedish client that the old working relationship was what I was used to and contracted to. As they have changed their rules and come to an agreement with american software house would I still be tied in to me -> agency 1 contractual agreement?
contract between me and agency 1 reads:
"
Agency: <agency 1>
Service Provider: <me>
Client: <large american software house>
Working Address: <swedish bookcase seller>
...
Protection of Agencies Business
- Unless an Introduction or engagement is employment business and not 'opted out'
-- the service provider will not (other than under a contract with the agency) provide services to the CLient, either during a contract, or within six months following the later of (i) introduction, and (ii) the end of the most recent contract;
--the service provider will inform the agency immediately it becomes aware if, within 6 months following the later of (i) introduction by the agency to the client and (ii) th eend of the most recent contract, the client (other than through the agency) makes an offer of employment of engagement direct to any person introduced or who has provided services on the service providers behalf.
- subject to the above, a contract is not exclusive, the agency acknowledges that the service provider enters this contrct in the course of its business of providing services to its customers, and the service provider remains at liberty to alos provide services to third parties. It is the service providers responsibility to ensure no conflict of interest arises."
I have worked self employed via Agency 1 for the last 8 years on and off, my last contract being me -> agency 1 -> large amercian software house -> swedish end client (well known for bookcases called billy) being a 3 monther extended and extended to 2 years which ended Dec 1st last year.
I have been aproached for a new contract for end swedish client however they have changed their internal workings and reduced the PSL list. I informed them I was under a tie in clause via agency and they are under a tie clause with software house preventing me from going direct for 6 months. After a few days they have come to an agreement with large amercian software house to release me from my 6 month tie in clause and have told me that I will be contacted by one of their in country PSL brokers (lets call them agency 2). Since arrving in the country I have setup a local Ltd equivalent and intend to work via that for the foreseeable future (for tax reasons).
It seems no one has told Agency 1 this. I have had a phone call from hriing manager of swedish client and they have offered me a 50% rate increase. I have forwarded the email i received from swedish client stating "swedish client to american software house have come to an agreement i am not tied in to software house for 6 months" to agency 1 when i was asked "whats the latest with the renewal, have you heard from end client, i am pushing this from my end". Agency 1 then replied with "it would be good to run through them (agency 2), what is the hiring manager at swedish client called, strangely our contractual clause is the same as large american software house when it comes to going direct".
So, my questions being, Agency 1 obviously wants their cut or to muscle in on the action, how would you approach this? I know what rate i have been offered from swedish client, i also know agency 2 charge 1.5% on top to bill swedish client. I am reluctant to reduce that rate to give a part to agency 1 when they have done nothing in terms of the 5 extensions and 2 new contracts i have secured with end swedish client over the last 2 years. Does agency 1 have any legal retribution if I am now living in a different country and also working via my newly setup swedish co. ?
I always had a very good working relationship with agency 1 and I did point out to swedish client that the old working relationship was what I was used to and contracted to. As they have changed their rules and come to an agreement with american software house would I still be tied in to me -> agency 1 contractual agreement?
contract between me and agency 1 reads:
"
Agency: <agency 1>
Service Provider: <me>
Client: <large american software house>
Working Address: <swedish bookcase seller>
...
Protection of Agencies Business
- Unless an Introduction or engagement is employment business and not 'opted out'
-- the service provider will not (other than under a contract with the agency) provide services to the CLient, either during a contract, or within six months following the later of (i) introduction, and (ii) the end of the most recent contract;
--the service provider will inform the agency immediately it becomes aware if, within 6 months following the later of (i) introduction by the agency to the client and (ii) th eend of the most recent contract, the client (other than through the agency) makes an offer of employment of engagement direct to any person introduced or who has provided services on the service providers behalf.
- subject to the above, a contract is not exclusive, the agency acknowledges that the service provider enters this contrct in the course of its business of providing services to its customers, and the service provider remains at liberty to alos provide services to third parties. It is the service providers responsibility to ensure no conflict of interest arises."
Comment