New contract but clause preventing me from working

[billybiro]

Monumentally stupid advice.

Why?

[NotAllThere]

Ask the client if they're willing to decline the fact that you're working there should the agency call to enquire.

If they say yes, go for it. What the agency doesn't know......

Monumentally stupid advice.

[billybiro]

The client now wants to contract directly with my Ltd Co. However, the agency has a clause that prohibits me from working for the client for 12 months after I've left.

Ask the client if they're willing to decline the fact that you're working there should the agency call to enquire.

If they say yes, go for it. What the agency doesn't know......

[rootsnall]

If the client is initiating this 'go direct' approach and it's them who are saving money then I'd ask them for an email saying they would cover any fall out from it. They'll probably not do that but worth a try. Every time I've been in this situation the client has bottled it when the agent has applied some pressure even if I was willing to tough it out.

[northernladuk]

Use the google method to search the forums as we've covered this endlessly. There is no right or wrong answer to this. You need to understand your situation fully and then will be able to make a decision what to do.

In google type in 'handcuff site:contractoruk.com/forums'

Mess around with the search terms but just using that you will come across hundreds of threads on exactly this subject.

The answer is very much dependant on the exact details of your situation so best bet for you to is go read those, understand exactly where you stand and then act accordingly.

[Old Greg]

Start a new Ltd to muddy the waters a bit more, and go ahead. Tricky job market as you say.

[MrBen]

Yes, the agency on the PSL subbed it out to another agency who I am going through and both are taking fees... does this make any difference?

[BlasterBates]

Basically if the agency isn't offering you any renewal in effect the handcuff clause is null and void. Try to renew through the agency once they give you official confirmation they won't be, then sign up direct with the client.

[ladymuck]

Thanks. That's very useful. The agency are not on the PSL. My situation is that the client has a PSL and went to an agency who then couldn't find anyone so they went to another agency that placed an advert and I applied and got the contract so I'm going through that second agency. The client is not using anyone else from the same agency.

Ah so you're not through two agencies but just the one? Or did the agency on the PSL sub it out and could be taking a fee?

[MrBen]

Thanks. That's very useful. The agency are not on the PSL. My situation is that the client has a PSL and went to an agency who then couldn't find anyone so they went to another agency that placed an advert and I applied and got the contract so I'm going through that second agency. The client is not using anyone else from the same agency.

[ladymuck]

If the agency are no longer on the client's PSL and that's why they want you to go direct, then the agency cannot make a claim for financial loss although they will have a grump up about it.

If the client is still giving the agency work then things are a bit trickier. The client needs to tell the agency to remove the handcuff clause, and be prepared to cover any penalty, as otherwise you could find yourself on the wrong end of a legal claim.

Talk to your client, tell them there is this handcuff clause and find out which of the above scenarios applies.

[MrBen]

Can anyone offer any advice. I've been with a client for about 6 months going through 2 agencies. Initially the contract was for 1 month but was extended to 6 months. The client now wants to contract directly with my Ltd Co. However, the agency has a clause that prohibits me from working for the client for 12 months after I've left. I feel that I have to take this contract given the job market and impending economic situation that could elsewise render me unemployed. Should I take it? Should I inform the agency?