Reply to: Switch agencies mid contract

[SueEllen]

Oh please, please, please go ahead with this as we await the next thread 'My previous agency is suing me, is there anything I can do to fend them off?'

I rather not.

We will end up with an agent who won stating his case is conclusive case law about opting out in virtually every thread...

[BolshieBastard]

Oh please, please, please go ahead with this as we await the next thread 'My previous agency is suing me, is there anything I can do to fend them off?'

[northernladuk]

Oh my god! You used to be a newbie?

LOL.. I know right..

[AJ1982]

Some moron asked this a couple of years ago

http://forums.contractoruk.com/busin...e-company.html

Oh my god! You used to be a newbie?

[northernladuk]

Just to add you would also be getting to the point that the situation is so smoke and mirrors to avoid some very expensive costs that the client will want nothing to do with it and bin you anyway.....

[northernladuk]

Some moron asked this a couple of years ago

http://forums.contractoruk.com/busin...e-company.html

[AJ1982]

I think you are onto a severe looser here, not only will you get harassed legally, but your current client will.

My advice, go direct with your next client.

Keep this one going as normal and keep invoicing.

[northernladuk]

Isn't this all about piercing the corporate veil. There is some case law around this that means it won't work.

Something like....

http://www.hfw.com/Piercing-the-Corporate-Veil-Dec-2012

And some explanation on what it means..
https://en.m.wikipedia.org/wiki/Corp...United_Kingdom

By changing your company does not break the link as you are hoping to do.

[phillcooper]

I just had a thought and would like your opinion on it -

the contract is with the limited company not the individual, meaning that the limited company cant provide a service to the end client for a certain period after the end of the contract.

What is to stop the individual closing down the limited company and setting up a new one, which they would then use to go direct with the end client?

[SueEllen]

possibly, its looking a lot more feasible now. Just need to get the legalities figured out.

Expect the agency to sue you.

[phillcooper]

its looking like the handcuff clauses might be an issue, the only option I can think of to get around that is to buy the contractors out of their current contract, but that creates other issues.

[northernladuk]

What does your contract say about handcuff clauses? It is highly likely the old agency will be losing out from this so he has a pretty solid case for compensation I am afraid. I am sure there will be something in the upper contract with the client as well so am surprised the client is so calm about it. The most worrying thing will be the old agency throwing a real wobbler that the client won't want to deal with and wash their hands of you.

The reasons for the change could be pretty key to how difficult this is to pull off as well. If those reasons are purely about you the client won't want too much to do with it. If it benefits the client they maybe more likely to support you in the change and even possibly pay off or strong arm the old agency. I wouldn't guarantee that. Depends on how much pressure the old agency puts out.

[phillcooper]

possibly, its looking a lot more feasible now. Just need to get the legalities figured out.

[AJ1982]

Did your previous idea take off then?

http://forums.contractoruk.com/busin...ts-please.html

[Antman]

Unless you can get the client to end their relationship with your agency will you stand any chance of switching. After all, the agency sourced you for the role, they have a right for their commision which you want to do away with.

If the agency is shafting you on rate, the end-client wouldn't get involved, they already agreed to pay the rate to the agency before meeting you. So for the end-client to get involved it'd have to be something else than feeling empathy on your rate...

Best to look for something that the agency has done contractually with your end-client or you could just put it all down to experience and finish the contract then move on. I did the latter and went back to the same end-client direct at a later date.