Going Direct after Client refuses to contract via agency

[TheFaQQer]

My rate will be the same as the last rate

Missed a trick there.

[eek]

One question I have is that would it help to ask agency formally to arrange a contract with the client to demonstrate that they would not be able to fullfil the clause to arrange a contract with the client and I had no option but go direct otherwise I would lose business?

No leave the agency out of the picture let them do all the running if they want to be arsey.

[Metalic]

Going Direct after Client refuses to contract via agency

Thank you all for your help.

Suggestions here and my research indicates the restriction clause would not be enforceable as the agency cannot demonstrate loss of earnings as the previous contract was terminated by the client two months ago and they had already lost the client before and the client would not issue new contract through this agency.

Regarding other points raised:

• My rate will be the same as the last rate

• I do not know the specifics, all I know client has removed the agency from the supplier list. I doubt it would be the rate as client pays the contractors directly so they would know the agencies' commission.

• The agency already knows about client approach for new contract. As initially neither the manager nor I knew that the agency was no longer a supplier to the client, we expected a simple process through agency. I have told the agency on the phone and I believe the client has been in contact with agency as well.

One question I have is that would it help to ask agency formally to arrange a contract with the client to demonstrate that they would not be able to fullfil the clause to arrange a contract with the client and I had no option but go direct otherwise I would lose business?

[Contreras]

Negotiate your fee with the client so that it's about the same as what they were paying before (i.e. including the agency commission). Proceed as advised above, but hang onto the commission bit in the very unlikely event that a court forces you to pay up.

Beware that the response may be "oh well in that case we might as well go via the agency", or worse - silence while they look to engage a cheaper contractor or permie.

Before discussing the rate, why won't the client won't deal via the agency? Does the manager who wants to go direct have this "idea" sanctioned by HR? Is it there a problem with that specific agency or is it a change in company policy? The latter means their contractor resource pool has suddenly become restricted to probably just you and a handful of others!

When I've been approached about going direct I've let the client know I'm equally happy to work either via either route and that it's their call to make, and that I won't let on to the agent about the possibility of work. But if they insist on the agency route (and they usually do) then I'll make my rate negotiations with the agency thank you.

Middle-ranking PMs/team-leads often have an overinflated idea of the agency's margin and so overestimate the potential savings to their project by going direct with the contractor. As much as it pains me I reckon there can sometimes be a better chance of a rate increase (and less chance of damaging the client relationship) by staying with and squeezing the agent.

[thunderlizard]

Negotiate your fee with the client so that it's about the same as what they were paying before (i.e. including the agency commission). Proceed as advised above, but hang onto the commission bit in the very unlikely event that a court forces you to pay up.

[quackhandle]

Go for the gig and forget about it.

This. The pimp wouldn't think twice to screw you over, just play the same game they do.

qh

[northernladuk]

Have a search for handcuff or restraint of trade or something like that. This has been done in detail many times.

The idea of the handcuff is to protect the business interests of the agency. If there is none the handcuff will not stand. For any chance of winning the agency must prove he will lose out to the new arrangement, for example, you get yourself a contract that would otherwise have gone to them. If that is they case they will win. The fact they are not even doing business with the client means there is no hope in hell of him making a penny either way so to stop you going for this gig is wholly unreasonable.

Some of the other links discuss the details of restraint of trade and the key factors that will allow it to stand up. Has to be reasonable, timely and so on. This is none of those.

Go for the gig and forget about it.

[VectraMan]

No court in the land will uphold a loss of income for the agency since they are no longer able to tender the client with contractors.

On that basis no contract would be worth the paper it's written on.

The client probably has an exclusivity clause in their contract too, meaning the agent can sue either or both of you.

[DeludedAussie]

Hi,

I have tried to search to see if this item has been discussed previously but could not. I would be grateful if anyone shares their experience or point me to any info with the similar situation.

I am an IT contractor through a limited company.

I have a question regarding my contractual obligation to the agency. The contract with agency opts out of the Conduct of Employment Agencies and Employment Business Regulations 2003 - Regulation 32 (9). The contract was terminated two months ago by the client and lasted 18 months with 6 months renewals.

After 2 months break, I have been contacted by the client for a new contract role. I informed the client that the contract with my agency has a clause regarding provision of services within next 12 months through the agent and asked them to arrange it with the agency.

The client come back and said the they do not use this agency as supplier any more and they will not have a contract with the agency and they will only offer a direct contract.

In this situation, can the agency still legally demand any commission from my limited company ?

I have mentioned the client contact to agency on the phone and know that client and agency has been in touch but could not reach an agreement.

Is there any processess I should follow e.g. contacting agency and asking them in writing to provide the contract with the client which they will not be able to provide for example?


Thanks in advance

Empty old company and start new one - Let them sue the old limited company if they wish

By the time it gets to court (two years) there will be no assets that they can touch

[BolshieBastard]

You are not cheating the agency out of work in any way as the client will not deal with them.

Fill yer boots and don't worry about it.

This.

No court in the land will uphold a loss of income for the agency since they are no longer able to tender the client with contractors.

Who's going to tell the agent any how?

[jmo21]

You are not cheating the agency out of work in any way as the client will not deal with them.

Fill yer boots and don't worry about it.

[SueEllen]

1. Find a lawyer - search on threads for recommended names.
2. Give lawyer copy of contract and explain situation
3. If lawyer gives green light then take contract
4. Inform client to ignore old agency and any hassles to inform you asap.
5. If old agency hassles client or you then get lawyer to write a letter to agency telling them that you will take them to court and sue them for the entire cost of the contract.

[eek]

Hi,

I have tried to search to see if this item has been discussed previously but could not. I would be grateful if anyone shares their experience or point me to any info with the similar situation.

I am an IT contractor through a limited company.

I have a question regarding my contractual obligation to the agency. The contract with agency opts out of the Conduct of Employment Agencies and Employment Business Regulations 2003 - Regulation 32 (9). The contract was terminated two months ago by the client and lasted 18 months with 6 months renewals.

After 2 months break, I have been contacted by the client for a new contract role. I informed the client that the contract with my agency has a clause regarding provision of services within next 12 months through the agent and asked them to arrange it with the agency.

The client come back and said the they do not use this agency as supplier any more and they will not have a contract with the agency and they will only offer a direct contract.

In this situation, can the agency still legally demand any commission from my limited company ?

I have mentioned the client contact to agency on the phone and know that client and agency has been in touch but could not reach an agreement.

Is there any processess I should follow e.g. contacting agency and asking them in writing to provide the contract with the client which they will not be able to provide for example?


Thanks in advance

12 months is probably not legal if it went to court. 2 months is reasonable and even then that depends on whether you opted in or out.

Either way the choices are:-

1) Take the contract direct and argue with the agency if it comes to that
2) keep looking

HTH

[Metalic]

Hi,

I have tried to search to see if this item has been discussed previously but could not. I would be grateful if anyone shares their experience or point me to any info with the similar situation.

I am an IT contractor through a limited company.

I have a question regarding my contractual obligation to the agency. The contract with agency opts out of the Conduct of Employment Agencies and Employment Business Regulations 2003 - Regulation 32 (9). The contract was terminated two months ago by the client and lasted 18 months with 6 months renewals.

After 2 months break, I have been contacted by the client for a new contract role. I informed the client that the contract with my agency has a clause regarding provision of services within next 12 months through the agent and asked them to arrange it with the agency.

The client come back and said the they do not use this agency as supplier any more and they will not have a contract with the agency and they will only offer a direct contract.

In this situation, can the agency still legally demand any commission from my limited company ?

I have mentioned the client contact to agency on the phone and know that client and agency has been in touch but could not reach an agreement.

Is there any processess I should follow e.g. contacting agency and asking them in writing to provide the contract with the client which they will not be able to provide for example?


Thanks in advance