Breach of Contract

[Dow Jones]

Clue-LESS

Fair enough if he had attempted to sign up directly with the client. What he has done is signed up with another agency - on the advice of some contractor working on their behalf (he probably got a nice introduction fee!)
I don't think he's got a chance if they decide to take him to court, possibly along with the client company that is a party to the new contract.
Prepared to be sued by:
1. The first agency - as you've left to go to the 2nd
2. The second agency - if you go back to the 1st
3. The client - as you've messed them around.
I would NEVER take a 1st time contractor if I have anything to do with hiring - most of them haven't got a clue in business terms!

[ASB]

Dooker, you may or may not be in breach of the contract. since you haven't quoted any of the relevant contract only paraphrased you have already placed an interpretation on it.

In my view it is likely there will be a clause which prohibits (or more accurately attempts to prohibit) you providing your services to the client by any means which not not involve the original agency. If you are not in breach of this then the clause in your contract is poorly drafted. [Although I assume you had the common sense to review what you were planning to do against the contract you had signed and felt it wasn't covered by it rather than just chancing it]

However, this clause is a restraint of trade. So the question is whether or not is is enforceable. There are only really two ways of dealing with this.

- The restrainer (agency) negotiates when they become aware there is a possible breach.

Seems to me that you had already expressed dissatisfaction, failed to agree ongoing terms etc. Thus you may well have walked - this does all limit the agencies loss.

- The restrainer sues.

The court will start from the view that the restraint is not enforceable and then decide whether it is (i.e. it is for them to prove it is reasonable not for you to prove it is not). Restraints are only generally valid when there is a legitimate business interest to protect. It seems likely to me that there is. [In general courts don't favour restraints which make it difficult for people to make a living - but they can still uphold them]

So, take advice on this - but it may well cost more than you are prepared to spend (which seems to be nil )

The letter you have received may well just be sabre rattling, it's a common tactic.

[malvolio]

You definitely need legal advice ... QDOS might be an option...

Or the free PCG Legal Helpline. You are a member, of course...?

[hgllgh]

According to what he said, the contract only stopped him going direct. He's not in breach.

Agreed ... but you need to read the contract really carefully to check...

if it says something along the lines of not working directly or via another 3rd party (your ltdco or another agency) then that sounds like breach of contract.
if it just says "working direct" then working through another agency doesn't sound like breach of contract.

You definitely need legal advice ... QDOS might be an option...

[NotAllThere]

Pretty reasonable take on the situation but I would not be sitting to comfortable if I were you, because you broke the contract.

According to what he said, the contract only stopped him going direct. He's not in breach.

[RichardCranium]

Second, get a good legal opinion (Roger Sinclair, Egos springs to mind),

He had a long standing good reputation.

I have used him and was very pleased with the work he did. (Not cheap, but prevented me making a VERY expensive mistake.)

[Magic]

Good Advice

THAT sounds like agency fud. Which could indicate they're on a hiding to nothing. First, inform your current agency. They might actually be helpful, considering that if you lose, they lose too. See what they say, and, importantly, see if they're prepared to do anything.

Second, get a good legal opinion (Roger Sinclair, Egos springs to mind), based on what the contract ACTUALLY says.

Most times it's the client that's more at risk than the contractor. If the agency aren't after the client, it's also an indication that their just trying it on.

Pretty reasonable take on the situation but I would not be sitting to comfortable if I were you, because you broke the contract.

Legally they can seek redress in Court if required.

The sensible option is none of this but then people are not sensible, especially when it comes to money.

Are you working as a Ltd or ?

You can always do as I did once when I had someone sued me for tripping over, health and safety declared there should have been a sign at the event, make sure you wear the appropriate footwear, I think it should be have been "ffs open your eyes and tell your other half not to wear high heals on rough ground.... I digress.

If you are a Ltd, run the company to the ground but keep say £100 so it is leagal but is worth in reality nothing. Form another Ltd, which you then do contracts through, stall delay tactics for court, delays about 18 months to 2 years.

When they win, hand them a note with the list of Insolvency practices and tell them it is going to cost £500+ to see your hand.

I never laughed so hard as the smug git thought he and his misses hit the jackpot.

[NotAllThere]

..., they will start proceedings to get an injunction and prevent me from working there. ...

THAT sounds like agency fud. Which could indicate they're on a hiding to nothing. First, inform your current agency. They might actually be helpful, considering that if you lose, they lose too. See what they say, and, importantly, see if they're prepared to do anything.

Second, get a good legal opinion (Roger Sinclair, Egos springs to mind), based on what the contract ACTUALLY says.

Most times it's the client that's more at risk than the contractor. If the agency aren't after the client, it's also an indication that their just trying it on.

[BrilloPad]

How much business do they do with the Company you are working for?

This is a very good point - I know current clientco lets contractors change agencies if they behave badly - else they are off the preferred supplier list.

[Magic]

Legal fighting fund

I took advice from other contractors and the work place and they advised me that this the way to go and duly arranged to change to another agency.

I hope those that advised you are going to chip in.

I guess you could get the set of brass balls out and tell them, the agency to do a Nike, file to Court or go away.

How much business do they do with the Company you are working for?

You are in not a good place me thinks.

[Magic]

In the brown stuuf

I took advice from other contractors and the work place and they advised me that this the way to go and duly arranged to change to another agency.
I have now received a solicitors letter from the original agency claiming all sorts of breach of contract and that unless I stop working and confirm to them in writing that I have stopped working for the client business, they will start proceedings to get an injunction and prevent me from working there. They have also stated that money still due to me can be withheld and used to offset any financial damages due to them.
I am sure there is someone out there that has had the same or similar problems, so any advice on how it went for you would be greatly appreciated.

Dooker

Did you not think that may £50 for some advice from a lawyer was worth it before you went down this route?

It does not matter how much the last agency was making as a margin, you broke the contract!

My advice, go see a lawyer now, it is going to cost you more, get your wallet out and be prepared to spend.

[dooker]

Hi
Is there anyone out there who could advise me on a "breach of contract matter?"

I started a 3 month contract Feb 2007 and have had this extended every 3 months (due to good work on my behalf and not anything the agency had done for me). I was then offered a 6 month contract taking me to the end of this year, performing a role that is miles away from what i was originally doing. Due to a problem with an invoice a month or two back i was able to get sight of the rate that was being charged to the client business for my services and it transpired that the agency was raking 34% of the fee. I approached the agency and asked if they were willing to reduce this extortionate rate and reward me with a better rate. The answer was swift no.
There is a clause in my contract that states that I can’t work “Directly” for the client business for a period of 6 months after the termination of the current contract. Can anyone clarify what “Directly” means as I have been led to believe that this stops me from running my own company and billing the client business direct, but would not stop me from changing agencies and continuing?
I took advice from other contractors and the work place and they advised me that this the way to go and duly arranged to change to another agency.
I have now received a solicitors letter from the original agency claiming all sorts of breach of contract and that unless I stop working and confirm to them in writing that I have stopped working for the client business, they will start proceedings to get an injunction and prevent me from working there. They have also stated that money still due to me can be withheld and used to offset any financial damages due to them.
I am sure there is someone out there that has had the same or similar problems, so any advice on how it went for you would be greatly appreciated.

Dooker