Working for 3rd Party despite restriction clause

[centurian]

There are no IR35 implications, unless they have a different contract for opted in. And if you were introduced to the client before opting out, you're opted in regardless.

Doesn't have to be a different contract.

Some contracts are worded such that the substitution clause is only valid if you opted out.

No substitution = slap bang in IR35

[thunderlizard]

15.1 The Consultancy shall not...for a period of 6 months following the termination of the Consultancy Services supply its services...to any Client for whom it has carried out Consultancy Services at any time during the previous 6 months.

What! That means you've got to basically dump all your retained clients for 6 months, however long you've had them. Completely ridiculous. Ignore it.

[Not So Wise]

Direct quote from agency:

"You have opted out of the regs. You can choose to opt back in at any time but will need to bear in mind the IR35 implications of doing so.

Here's a link to the full regs so you can see which rights you are giving up"

Honestly, there is a 99.9% chance you are actually opted in not out, so the above is most likely crap

Pretty much only way to be opted out is if agency had you sign the forms to do so before initial interview with client

And as said above, there are no IR35 implications, plus cannot think of what rights you might be giving up by being opted in, whole thing is about taking away agency "rights" not contractors (hence why they always try to convince people they are opted out)

[NotAllThere]

There are no IR35 implications, unless they have a different contract for opted in. And if you were introduced to the client before opting out, you're opted in regardless.

[Coalman]

Forgive me if I'm wrong here, but this only applies if you are opted out doesn't it? Are you *sure* you are opted out?

Direct quote from agency:

"You have opted out of the regs. You can choose to opt back in at any time but will need to bear in mind the IR35 implications of doing so.

Here's a link to the full regs so you can see which rights you are giving up"

[NickNick]

Forgive me if I'm wrong here, but this only applies if you are opted out doesn't it? Are you *sure* you are opted out?

[Coalman]

Thanks Ardesco and pmeswani, I will be contacting the PCG Legal Helpline tonight.

I've just re-read the clause and I think it is invalid in this case as I am still under contract with ClientCo, therefore not terminated.

I will be discussing this with ClientCo though.

[pmeswani]

Probably need to clarify.

Restriction Clause:
15.1 The Consultancy shall not, and shall procure that the Staff and any sub-contractor shall not, for a period of 6 months following the termination of the Consultancy Services supply its services directly, or through any other firm, person or company, to any Client for whom it has carried out Consultancy Services at any time during the previous 6 months.

I was introduced to the Vendor through ClientCo.
Any work I do for Vendor will have nothing to do with ClientCo.
Any work is likely to be limited to a few days here and there at most at the moment.

I feel I need to discuss this with my ClientCo out of courtesy, but not with the agent - whats the opinion here?

Without seeing the full contract, I can only make an assumption based on your post.

The clause states that you cannot approach the client you are working with for up to 6 months after your contract ends with them via any means other than the agency who got you the gig. It makes no references to working for any of the clients customers, as long as your work does not require you to carry out any work for the client you are with.

However, if the work you may be doing via a third party involves the client you are with, as long as the client you are with now is not paying you directly, you should be ok. However, I suggest you have an amicable agreement with the client you are with, just in case you may end up doing some work for the client you are with (albeit indirect).

I do suggest that you seek legal advice before proceeding, as the advice given in this post is not qualified.

[Ardesco]

If i remember correctly 6 months is not valid, the restriction clause can really only realistically be 3 months maximum. Does this get you out of it totally? I really don't know, my suggestion would be the PCG legal helpline.

[Coalman]

Probably need to clarify.

Restriction Clause:
15.1 The Consultancy shall not, and shall procure that the Staff and any sub-contractor shall not, for a period of 6 months following the termination of the Consultancy Services supply its services directly, or through any other firm, person or company, to any Client for whom it has carried out Consultancy Services at any time during the previous 6 months.

I was introduced to the Vendor through ClientCo.
Any work I do for Vendor will have nothing to do with ClientCo.
Any work is likely to be limited to a few days here and there at most at the moment.

I feel I need to discuss this with my ClientCo out of courtesy, but not with the agent - whats the opinion here?

[pmeswani]

I have been contacted by a vendor that i have been introduced to through my current clientco with a view to assisting them with a bid for seperate company (actually a previous clientco from my permie days).

I have the fairly standard restriction clause in my current contract.

Should I inform my agency about this as I was introduced to the vendor through my current clientco.

As it will only be for a small amount of work, I leaning towards ignoring the agency.

The current clientco will not be involved at all in this work.

What do the panel think?

Ask yourself the questions:

1. Does your agency know who the 3rd party company is?
2. Does bidding for work with the 3rd party cause a conflict of interest with your current client co?
3. Can the agency reasonably prevent you from working for any client (as they could be potential clients of the clientco you are working for)?

I cannot answer your question directly, and maybe someone with more experience can assist.

[Coalman]

I have been contacted by a vendor that i have been introduced to through my current clientco with a view to assisting them with a bid for seperate company (actually a previous clientco from my permie days).

I have the fairly standard restriction clause in my current contract.

Should I inform my agency about this as I was introduced to the vendor through my current clientco.

As it will only be for a small amount of work, I leaning towards ignoring the agency.

The current clientco will not be involved at all in this work.

What do the panel think?