Using umbrella company for directly contracting end customer, can I start my company?

[Wanderer]

That is a really strange restriction. Are you sure it applies to the umbrella and not to the agency?

Did you opt out of the agency regulations?

Speak to your agency and tell them you are terminating the contract with the umbrella and starting a new one with your LTD company and see what they say.

Say NOTHING to the umbrella other than you are giving notice that you are terminating the contract. Make no mention of starting a new contract through a limited company.

[NotAllThere]

A strange clause for a brolly. Not unusual or unreasonable for an agency. Are you sure you're employed through a brolly?

There are a number of reasons why a handcuff clause like this would be considered unreasonable in a court. But do you really want to go that far? If you lose it could be expensive.

[contractoralan]

Why would someone agree to such a clause in an Umbrella contract ?

Either the umbrella is unscrupulous or they have copy-pasted a standard contract of employment from somewhere on the web.

Either way, the umbrella looks bad.

[perplexed]

Hate to be snarky, but I'd suggest the answer is in the clause you posted, tbh.

[pvk]

Need advise as I had found a contract with end customer and since I was not having my own company to start with, i got in touch with an umbrella company. while the contract with end customer is till next 6 months. I want to end this contract and start a new contract with my own company. Customer has agreed to recontract with my new company.
The umbrella company has a condition as stating as below
x. You hereby agree that you shall not (without the prior consent in writing of the Company) for a period of 6 months immediately following the termination of your employment with the Company, indirectly or directly or through an agency or otherwise and whether on your own behalf or in conjunction with or on behalf of any other person, firm, company or other organisation, (and whether as an employee, director), (1) be employed or engaged in, or (2) perform services in respect of, or (3) be otherwise concerned with the Customer for whom you were carrying out an Assignment, provided always that the provisions of this clause x shall apply only in respect of Services with which you were either personally concerned or for which you were responsible whilst employed by the Company during the 12 months immediately preceding the termination of your employment.

Since I found this contract with customer in the first place and using umbrella company for billing purpose. Can I still go ahead to resign from umbrella company and make a fresh contract with the customer. Your advise/suggestion would help me a lot.