Post Employment Contract Restrictions

[Lance]

Sorry about the delay in getting back to you

15 Post Employment Contract Restrictions
15.1 The Employee shall not, for a period of six months following the termination or expiry of this Agreement be engaged (directly or indirectly or through an agency or business other than the Customer) in the performance of or provision of consultancy services for a Client, or any member of a Client's group of companies, or any customer of a Client for whom the Employee provided Services or was introduced to during the Employment Contract.

15.2 The Employee will not seek to induce any person to divulge any information relating to the Employer or a Client or to otherwise act in breach of this Agreement.
15.3 The Employee will not directly or indirectly induce or seek to induce any employees of a Client to leave its employment.

Thanks for looking.

I would suggest that the restriction is enforceable. It's limited and only 6 months.
If you breach it, and are found out (that's important), then you'll likely lose in court, and either have to pay the umbrella for 6 months of their losses, or leave the client with a court order preventing you from working for them for 6 months.

Note that for the umbrella to find out might be hard for them. And they would need evidence to sue you. Although they don;t need evidence to get a court order to prevent you from working for the client.

IMO - just work out the contract and go LTD. later. The fact that you didn't realise you could setup a LTD in a day or two suggests that you're maybe not ready for it anyway.
And £20/ day isn't bad for an agency fee. And you'll get pension, holiday, sick pay etc.

[jmhsesolutions]

Are you direct into the client, or through an agent?

Hi.

I am direct to the client.

[WTFH]

I have a Contract with Paystream. I invoice my client via Paystream but have no contract signed with my client. Paystream sort out the deductions etc and i pay them £2o/week for doing this.

Are you direct into the client, or through an agent?

[jmhsesolutions]

So.. Is this in a contract between you and Paystream in regards to PAYE services or is this in the contract between you and the agent/client.

I think you are getting mixed up the parties the handcuff applies to.

I have a Contract with Paystream. I invoice my client via Paystream but have no contract signed with my client. Paystream sort out the deductions etc and i pay them £2o/week for doing this.

[northernladuk]

So.. Is this in a contract between you and Paystream in regards to PAYE services or is this in the contract between you and the agent/client.

I think you are getting mixed up the parties the handcuff applies to.

[jmhsesolutions]

What does the clause say exactly?

Sorry about the delay in getting back to you

15 Post Employment Contract Restrictions
15.1 The Employee shall not, for a period of six months following the termination or expiry of this Agreement be engaged (directly or indirectly or through an agency or business other than the Customer) in the performance of or provision of consultancy services for a Client, or any member of a Client's group of companies, or any customer of a Client for whom the Employee provided Services or was introduced to during the Employment Contract.

15.2 The Employee will not seek to induce any person to divulge any information relating to the Employer or a Client or to otherwise act in breach of this Agreement.
15.3 The Employee will not directly or indirectly induce or seek to induce any employees of a Client to leave its employment.

Thanks for looking.

[jmhsesolutions]

You are probably best to see out this contract through the umbrella then go Ltd when you get your next one, with a new client.

Can I check - you’ve been contracting for 8 weeks and are on your second client already? What happened to the first one?

Was providing 2 weeks holiday cover. Once finished another contractor on the project asked me to start work for them.

[northernladuk]

What does the clause say exactly?

[WTFH]

Thanks.

New to contracting, had a job offer which I needed to take. Umbrella was quickest/easiest solution to getting the job. Then switched to a new client using same Umbrella. Now I have a bit of certainty of work I want to go Ltd. Possibly can't though. Will seek legal advice on this.

Not much traffic on the message boards so assumed this was not a contentious issue.

You are probably best to see out this contract through the umbrella then go Ltd when you get your next one, with a new client.

Can I check - you’ve been contracting for 8 weeks and are on your second client already? What happened to the first one?

[jmhsesolutions]

It possibly is right. Without seeing your contract it’s hard to say.
These things (restrictive covenants) are frequently referred to as “handcuff clauses” and may apply for 6 months or so. Normally you see them with agents - which is about them protecting their business, but it could happen with umbrellas too.
8 weeks in is a vary short time frame to change your mind. What’s your reason for wanting to change?

Thanks.

New to contracting, had a job offer which I needed to take. Umbrella was quickest/easiest solution to getting the job. Then switched to a new client using same Umbrella. Now I have a bit of certainty of work I want to go Ltd. Possibly can't though. Will seek legal advice on this.

Not much traffic on the message boards so assumed this was not a contentious issue.

[WTFH]

Post Employment Contract Restrictions

I am new to contracting and signed up with an Umbrella (Paystream) 8 weeks ago. I want to switch to Ltd but the Paystreaam contract has a Post Employment Contract Restriction that seems to say I can't leave Paystream and continue working for my client. In other words I can't swtich to my own Ltd. Is this right?

It possibly is right. Without seeing your contract it’s hard to say.
These things (restrictive covenants) are frequently referred to as “handcuff clauses” and may apply for 6 months or so. Normally you see them with agents - which is about them protecting their business, but it could happen with umbrellas too.
8 weeks in is a vary short time frame to change your mind. What’s your reason for wanting to change?

[jmhsesolutions]

I am new to contracting and signed up with an Umbrella (Paystream) 8 weeks ago. I want to switch to Ltd but the Paystreaam contract has a Post Employment Contract Restriction that seems to say I can't leave Paystream and continue working for my client. In other words I can't swtich to my own Ltd. Is this right?