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Contract negotiations - Restraint of Trade

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    Contract negotiations - Restraint of Trade

    This is my first post here so take it eazy on me people.

    I am currently contracting in the city of London for the system development group of quite a big Exchange. My contract is through a consultancy firm who have employed me since March of 2003. Initially my contract was 6 months and I renewed in September 2003 with no problems. Coming up for the end of my second contract period I mentioned to the Consultancy's Relation manager for the Client site that I was looking for a rate increase at renewal. He mentioned that they were looking at increasing rates across the board for all the consultancy's resources onsite (There are a half a dozen full time consultancy workers that work here also). Once the negotiations had been sorted with the client then he would be in a position to discuss Rate increases. This occured 3 or 4 weeks before the contract expiry deadline. I did not hear anything more from the Consultancy about the rates or even if my Contract was going to be renewed by the client until, feeling apprehensive, I started pushing people to give me answers. Finally after much persistence, and a few sleepless nights, I was advised the day that my contract was expiring that the client did want to extend my contract for a further 6 months (I already knew this from talking with certain managers of the Client except I knew that it was for 12 months not 6). I also received the contract faxed through to me at work. When I received this I immediately noted that the rate was identical, the period was for 6 months and in addition to the standard terms and conditions there was also a clause relating to termination which stated that I would not be able to leave even with 30 days notice unless the Consultancy agreed. However the Consultancy could still get rid of me in 30 days and also if the Client did not need me the Consultance could get rid of me straight away by giving notice. This clause was a major change to what I had previously been on and when I questioned the contracts manager of the Agency (Who had been taken over in the new year by a large IT holding company) I was told that this is the standard contracts that they offer and there was nothing I could do about it. When I mentioned to them that I was not happy to sign they said I would not be able to work onsite without a contract even though I had meetings arranged for the next day. Eventually I suggested that they change the term to 1 month until the issues could be sorted out which they agreed to do. The one month extension is due to expire in a weeks time and I have been advised that I will be offered an 11 month contract plus be getting a rate increase and also that I would be now required to sign a form opting out of new legislation that makes it easier for Contractors to work directly for the Client rather than having to wait 6 months. The rate they offered was less than I wanted but I also discovered that the Consultancy was taking a 30 percent plus cut. The Client has a number of other contractors who are employed via an Agency and I believe if I was working through them the cut of my rate would be less and I would receive better support. My question is this should I approach the client to see if I can attach myself to one of the agencies when my contract comes up and if I attempt to do so is this new legislation effective in my case? If not by working for an agency rather than the client am I breeching the restraint of trade clause in my contract?

    #2
    Um, have you ever heard of paragraphs?

    Comment


      #3
      Re: @#%$ negotiations - Restraint of Trade

      I am no expert but I think that, since you haven't opted out of the new legislation, nothing prevents you from switching agencies for your contract extension any day you want. And, in theory, you can start work through the new agency the day after you've left the old one.

      Comment


        #4
        Re: @#%$ negotiations - Restraint of Trade

        Looks like this consultancy is playing hardball, so get an offer from another agency and sign up with them. 30 plus percent is too much.

        Comment


          #5
          Re: @#%$ negotiations - Restraint of Trade

          It sounds like you are currently opted in ( ie. not explicitly opted out ) to the new employment legislation. If so the consultancy should have an 'extended period of hire' in their contract with the client ( and probably something in yours ) to offer you for a period of ( I think ) 8 weeks at the end of your contract. Only after that would you be free to go direct. You'll need the client to be on your side in any wrangling or you can forget it. In practice most managers will not want to know if it gets messy. Legally you are probably in a good position but in practice it may be easier to go with the flow. Somebody on this forum had a good understanding of the employment regs but have a scan around the web and you'll find stuff on it. If nothing else it'll be a decent bargaining chip with the consultancy/agency.

          Comment


            #6
            Re: @#%$ negotiations - Restraint of Trade

            The only thing is Roots is that if the agency doesnt have a clause in there that gives them the right to an extended period before you jump ship then they have nothing on you.

            Check your contract and see if there is anything in there about an extended period before you can either go direct or change agencies.

            Regards

            Mailman

            Comment


              #7
              Re: @#%$ negotiations - Restraint of Trade

              The way I understood it was if you are not opted out ( ie. opted in ) then you are covered by the DTI regs and these state a 8 week extended period of hire. Like I said if his client is willing to get messy with the agent/consultancy he's probably on good legal ground but in practice thats not usually the case. I have had the odd agent hater manager who would of probably gone for it !

              Comment


                #8
                Re: @#%$ negotiations - Restraint of Trade

                Has anyone noticed that his original post is over a year old...

                Comment

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