Reply to: Fallout between agency + client. My Ltd stuck in the middle

[CTS]

The client doesn't want to lose us would have been a better choice words.

[TheFaQQer]

The client wants to employ us...

[CTS]

Wonder if the OP is aware of the 24 month rule?

Yes I am

One hurdle at a time!

[TheFaQQer]

They have withheld another individuals invoice previously so I have moved to weekly invoicing. Worst case scenario I would have to fight them for a weeks work.

I assume there are links on here that would help that situation?

The Late Payment of Commercial Debts Regulations 2013 - Pay on Time

[stek]

You sound more like a permie to me reading that. Maybe you have been at your client too long.


Think about it a little bit and understand your position and maybe you can work that out yourself.

Wonder if the OP is aware of the 24 month rule?

[CTS]

They have withheld another individuals invoice previously so I have moved to weekly invoicing. Worst case scenario I would have to fight them for a weeks work.

I assume there are links on here that would help that situation?

[BlasterBates]

They can only cancel contract and sue you for damages. In this case the contract has already been cancelled by the agency and the damages are 0 because they've already lost the contract.

I'm pretty sure the agency won't chase you. They would potentially only go after you if you did the dirty on them, which you haven't.

[TheFaQQer]

Let the agency second guess your position with the client (who should also be blanking them). Save your time, energy and cash - don't get lawyer involved until & unless they do so first (or if they fail to pay the final invoice).

This is their most likely course of action - to make you do all the chasing to get what is due to you. Make sure that if this happens you know your rights for late payment.

[northernladuk]

Thank You very much everyone. This reinforces my own views.

I do think that it will get messy but unsure what exactly I would be sued for. I haven't stolen a position from the agency. The agency has terminated its agreement with the client.

as of the 12th June I would effectively be out of work.

You sound more like a permie to me reading that. Maybe you have been at your client too long. They can't sue you for anything. It's been explained clearly. It won't even get to a lawyer if you send them the right links. They will know they can't do anything about it. All they will do is sling some crap around that might affect your role with the client if you don't bat it off. Sometimes attack is the best form of defence for you.

if the agency offers me a new position at another client (that I do not want) does that change anything?

Think about it a little bit and understand your position and maybe you can work that out yourself.

[SueEllen]

Stop worrying about that.

You have a current long-term client who is happy about your work etc.

As long as the client is happy for you to continue and go through another agency then all you need to do is sit tight and make sure you have a lawyer on speed dial to go after the old agency if they threaten you with anything.

[CTS]

Thank You very much everyone. This reinforces my own views.

I do think that it will get messy but unsure what exactly I would be sued for. I haven't stolen a position from the agency. The agency has terminated its agreement with the client.

as of the 12th June I would effectively be out of work.

if the agency offers me a new position at another client (that I do not want) does that change anything?

[northernladuk]

Personally, I wouldn't be engaging any dialog with the agent whatsoever.

Let the agency second guess your position with the client (who should also be blanking them). Save your time, energy and cash - don't get lawyer involved until & unless they do so first.

I would just on a proactive basis to attempt to get them to back off. It's too late to start arguing with them once all hell has broken lose as there is a chance the client will drop the contractors or the new agency won't want anything to do with the situation. If you can point out that you are well informed and know your legal position there is a chance the agency may back off before the mud slinging starts.

Lawyers won't get involved as is the case in nearly everything to do with agents but they can certainly screw it up by scaring people off with the threats.

[Contreras]

In the contract between my LTD and the agency there is nothing mentioned about a punishment or any repercussion. It only says I cannot do it.

After speaking with a couple of my legal minded friends they have said that yes there is a clause but its going to be hard to enforce. I have called the PCG helpine (waiting on a call back) and I have also contacted a legal firm to discuss what my position may be.

Totally this. The handcuff is totally useless. ...

Point this out to the agent along with a couple of links mentioning this and you should be find and dandy.

Personally, I wouldn't be engaging any dialog with the agent whatsoever.

Let the agency second guess your position with the client (who should also be blanking them). Save your time, energy and cash - don't get lawyer involved until & unless they do so first (or if they fail to pay the final invoice).

[malvolio]

Yep, agree with the above. The test a court would apply is one of "reasonableness" - as in "Is it reasonable to the man in the street that the agency can prevent you moving to another agency?". Clearly, since the business is already lost, it is not reasonable and hence the clause in unenforceable; to do so would represent restraint of trade, which is whole other can of worms.

I would start negotiating with the new agency to novate the contract over and maybe reduce their margin a touch since you are brining them the business...

[northernladuk]

Yes

The point of these clauses is to prevent loss of business. If the client will no longer work with the agency then there is no business to lose.

Totally this. The handcuff is totally useless. No way would any court enforce this clause as you are in a no win situation. You can't go through the agency as they have binned the business with the client and you can't go direct. No one in their right mind would think that is an acceptable situation and breaches your rights to work.

No brainer this one. If the agency ditch the client they have no further business to protect. Handcuffs have to be fair and have demonstrable loss the agent for them to have a chance of standing up. This situation is neither of these.

Point this out to the agent along with a couple of links mentioning this and you should be find and dandy.