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My First Contract

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    My First Contract

    Hi all,

    I'm new here and new to contracting, so I've read lots of stuff, set up MyCo Ltd, got accountant, bank acct, registered with HMRC etc etc, and most importantly got myself a contract

    I got this contract through an ex-colleague who got me an interview, and it's with a big corp, so all contractors are handled via a big agent.

    It's taken almost two weeks after me signing lots of stuff for the agent (more on this below) to actually get the contract because there was some gap between A at big corp who I was introduced to and who is keen to get me in ASAP, and the agency who were asking for paperwork from big corp. Once I'd emailed A, and my contacts at the agency, B & C all together, then things finally got moving. It's well worth making sure everyone who should be communicating actually is!

    Now some questions:

    I signed the Opt Out from Conduct of Employment Agencies and Employment Businesses Regulations 2003, (yeah, I know I shouldn't have signed it, but I somehow missed this while checking all the other forms), anyway from what I've read, this may not even be valid as I wasn't introduced to the client by the agent?

    And on the contract itself there's a restrictive covenant (I've replaced their name with Agent):

    Notwithstanding any other term contained within this Agreement the Company warrants that for the duration of this Agreement and for a period of twelve (12) months following the termination of this Agreement howsoever caused the Company and/or the Consultant(s), including but not limited to Other Personnel, shall not:

    a) directly or indirectly in any capacity except through Agent enter into any arrangement with either the Client or End User or any company which is part of the corporate group of the Client or End User or any person or company which the Consultant(s) and Other Personnel connected with this Project has made contact with through the provision of Services to the Client or End User, if any such arrangement was gained as a result of the performance of Services under this Agreement;

    b) introduce any other person to the Client or the End User with the view of that person being employed by or providing services for the benefit of the Client or the End User, without the written consent of Agent, other than through Agent, provided that where the Services include the selection of personnel for the Client, this term shall not operate so as to restrict the way in which Agent provides Services to its clients.
    Is this enforceable as I got the contract direct, not through Agent?

    Second thing is the notice period (see, I've been paying attention )
    It's a six month contract, and the Notice Period to Agent is "2 weeks for the first 3 months, 4 weeks thereafter", whereas the Notice Period to Company is "2 weeks written notice"

    Should I ask for equal notice?

    Start date is set as Wednesday week, the 19th August, so I've got some time, and I'll run it past Qdos as well, but the more advice the better

    Thanks!

    #2
    Ask for equal notice, sure. There's no harm in asking.


    One other thing is to search on here for that agency by name (top right hand corner of the screen). That twelve month exclusion is very long, but I know of at least one agency who like to write that in to their contracts and they have their own special thread where you can feel the love for them.
    …Maybe we ain’t that young anymore

    Comment


      #3
      The advice is to get your contract checkout either for IR35, or for IR35 and legal matters.

      Generally a 12 month handcuff clause is unenforceable as it's a restraint of trade regardless of who introduced who, but you need someone to tell the agency this.
      "You’re just a bad memory who doesn’t know when to go away" JR

      Comment


        #4
        Notice is irrelevant. They will walk you on the spot if they need to.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by northernladuk View Post
          Notice is irrelevant. They will walk you on the spot if they need to.
          Agreed.

          On the other side, would you take a contract that you don't intend to fulfil. While notice on your side is useful, if it's simply to jump ship if a better offer comes along then you really shouldn't have taken Contract 1. There are ways of exiting a contract - some are more limiting to future prospects than others.
          The greatest trick the devil ever pulled was convincing the world that he didn't exist

          Comment


            #6
            Originally posted by LondonManc View Post
            Agreed.

            On the other side, would you take a contract that you don't intend to fulfil. While notice on your side is useful, if it's simply to jump ship if a better offer comes along then you really shouldn't have taken Contract 1. There are ways of exiting a contract - some are more limiting to future prospects than others.
            If only NW2PC would take this into consideration, Day 4 of current contract, Day -2 of new contract
            In Scooter we trust

            Comment


              #7
              The notice period and handcuff clause are likely in practise be trumped by client attitude.

              However what does it say about payments terms, specifically is it dependent on client payment?

              Should I ask for equal notice?
              I would. But it wouldn't be a deal breaker.

              Comment


                #8
                Yes, it's with Qdos already for the free review I get with the insurance, is it worth upgrading to the full review?

                Thanks for the advice, and I read this which says that notice periods don't have to be balanced. I won't worry too much about this as I've got no intention of using it anyway, why would I mess around on my first contract?

                Anyway, my main question remains: Is the covenant bit enforceable as the Agent didn't find me the job, as I got it through an ex-colleague?

                Thanks!

                Comment


                  #9
                  Originally posted by ginge View Post
                  Yes, it's with Qdos already for the free review I get with the insurance, is it worth upgrading to the full review?

                  Thanks for the advice, and I read this which says that notice periods don't have to be balanced. I won't worry too much about this as I've got no intention of using it anyway, why would I mess around on my first contract?

                  Anyway, my main question remains: Is the covenant bit enforceable as the Agent didn't find me the job, as I got it through an ex-colleague?

                  Thanks!
                  The contract is with the agent... not your friend. Who actually found you the job is irrelevant. Most of us could say Jobserv did but again there is no contractual relationship...

                  You are aware of the crap that contracting is in at the moment by the way don't you?
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by ginge View Post

                    Anyway, my main question remains: Is the covenant bit enforceable as the Agent didn't find me the job, as I got it through an ex-colleague?
                    !
                    Your question has been answered already.

                    And are you aware of the tulip contracting is in at the moment?
                    "You’re just a bad memory who doesn’t know when to go away" JR

                    Comment

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