Reply to: 6 month Clause in my Agency Contract restricting me going direct

[perplexed]

These days, IPSE+ membership will help in those circumstances.

Well, what's in the past is in the past tbh. Can't do much about it now.

Just loved the agent acting as if he was in our boat...

[TheFaQQer]

Did have a hysterical, couldn't make it up moment though. People angry with agent for not tipping the wink to us for what was going on. He complained he'd been shafted on his expenses so was also out of pocket. After about 3.5 years, my company ended up getting a cheque for £147.50 where £9k was owed. The documentation showed that whining agent was owed a whopping £13.50 on expenses...

These days, IPSE+ membership will help in those circumstances.

[perplexed]

Then if the were so inclined, the Administrators of the insolvent company could enforce the penalty in the clause.

How would they know? They'd have sight of the general contracts but to be honest, for the sums involved I very much doubt they'd waste their time following this up.

They'd have the legal duty to recover as much outstanding money / money for company, wouldn't they?

In reality, doubt they'd know,

[perplexed]

You need to keep an eye on who buys their assets and goodwill.

Also read your contract. Lots contain clauses that means you aren't bound to the contract in cases of administration.

Personally I would let the client know the agency is in liquidation as they probably have such clauses in their contract with the agency.

Agreed. Had this circumstance years ago - end client knew contractors were being paid late by agency, kept them on PSL having done a simple credit check / were getting good quality contractors. Lost a fair bit due to the liquidation. End client acted incredibly dodgily imo - told contractors to invoice them for the amounts going forward. Technically, that money should have gone into the pot for the liquidator to deal with.

Did have a hysterical, couldn't make it up moment though. People angry with agent for not tipping the wink to us for what was going on. He complained he'd been shafted on his expenses so was also out of pocket. After about 3.5 years, my company ended up getting a cheque for £147.50 where £9k was owed. The documentation showed that whining agent was owed a whopping £13.50 on expenses...

[washed up contractor]

On a tangent, what would happen if original agency was in say liquidation?

Then if the were so inclined, the Administrators of the insolvent company could enforce the penalty in the clause.

How would they know? They'd have sight of the general contracts but to be honest, for the sums involved I very much doubt they'd waste their time following this up.

[SueEllen]

On a tangent, what would happen if original agency was in say liquidation?

You need to keep an eye on who buys their assets and goodwill.

Also read your contract. Lots contain clauses that means you aren't bound to the contract in cases of administration.

Personally I would let the client know the agency is in liquidation as they probably have such clauses in their contract with the agency.

[SueEllen]

be wary of this though. What if another company has taken over the business, either partially or wholly? The contract may now be with a new agency and the clause still enforceable.

True but the agency needs to tell both the contractor and client they have taken over the existing business.

If neither of the parties know that a new middle man exists how are they suppose to do business with them?

[perplexed]

be wary of this though. What if another company has taken over the business, either partially or wholly? The contract may now be with a new agency and the clause still enforceable.

On a tangent, what would happen if original agency was in say liquidation?

[Lance]

Nope.

The party that put in that restriction no longer exists - so go direct or use another agency.

be wary of this though. What if another company has taken over the business, either partially or wholly? The contract may now be with a new agency and the clause still enforceable.

[Hertsseasider]

Does anyone have experience of getting out of this clause if ClientCo no longer has the agency on their PSL ?

Cheers

[Talos]

Nope.

The party that put in that restriction no longer exists - so go direct or use another agency.

Thanks, I just wanted to check

[northernladuk]

I have a similar problem but with a Twist

The Agency that I was contracting through Closed down, why I have no Idea, but as my last 6 months was finalized ending 30th June they ceased trading!!! Now I am coming to the end of my contract and the company wish to keep me for Longer, I had a clause in my last contract restricting me from going direct, but since they no longer exist as a trading entity can the former directors of the company still hold that restriction ?

Who's going to argue it if they don't exist????

[SueEllen]

I have a similar problem but with a Twist

The Agency that I was contracting through Closed down, why I have no Idea, but as my last 6 months was finalized ending 30th June they ceased trading!!! Now I am coming to the end of my contract and the company wish to keep me for Longer, I had a clause in my last contract restricting me from going direct, but since they no longer exist as a trading entity can the former directors of the company still hold that restriction ?

Nope.

The party that put in that restriction no longer exists - so go direct or use another agency.

[Talos]

6 month Clause in my Agency Contract

I have a similar problem but with a Twist

The Agency that I was contracting through Closed down, why I have no Idea, but as my last 6 months was finalized ending 30th June they ceased trading!!! Now I am coming to the end of my contract and the company wish to keep me for Longer, I had a clause in my last contract restricting me from going direct, but since they no longer exist as a trading entity can the former directors of the company still hold that restriction ?

[contractor555]

I wouldn't underestimate the lengths an agency may go to protect their revenue stream. If this role you are going to is visible to the old agent then they will be discussing it with the client. There is always the chance they'll spot on linkedin, see you on site, word of mouth with client or other contractors etc. I don't think you trying to disappear on a big site is a good way to avoid being sued by an agency, particularly if the handcuff is a slam dunk. Better to get it all out in the open and negotiate the situation. They could waive the handcuff to keep sweet with the client or the client will strong arm them in to dropping it etc.

Thank you very much for the advice. I am 18 months into my first big contract and I've managed to negotiate the rate I wanted with the agency and client and will be doing another 6 months here so a success story. The handcuff rule will still be there when i leave at Christmas but I will have more equity time and experience in contracting ways.