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Moving company and paying transfer fee for an HR agency

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    Moving company and paying transfer fee for an HR agency

    My Ltd Co. contracts with the British HR agency to the German client.
    I wanna close my Ltd co. and open Polish co. (because I live in Poland now and it's more efficient).
    My HR agency said that they only contract with British Ltd companies, so I was thinking about skipping them and entering a direct contract between the German client and the new Polish co.
    However, my UK Ltd has a thing called "transfer fee" in my contract, in case I wanna work for my client directly, my UK ltd needs to pay a 30k fee for the HR agency.
    The thing is that this contract is between my Ltd co and HR agency. Does it still apply to me if I will open the new company in Poland on my name?
    Last edited by qbait; 18 January 2019, 10:17.

    #2
    Originally posted by qbait View Post
    I'm hired through the British HR agency to the German client.
    I wanna close my British Ltd company and open company in Poland (because I live here now and it's more efficient).
    My HR agency said that they hire only British Ltd companies, so I was thinking about skipping them and being hired directly by my German client.
    However, I have a thing called "transfer fee" in my contract, in case I wanna work for my client directly, I need to pay a 20k+ fee for the HR agency.
    The thing is that this contract is between my British Ltd company and HR agency. Does it still apply to me if I will open the new company in Poland on my name?
    Can I suggest you repost with clarity between where you mean 'I' and where you mean 'My Ltd Co.'. It will help.

    Comment


      #3
      Originally posted by Old Greg View Post
      Can I suggest you repost with clarity between where you mean 'I' and where you mean 'My Ltd Co.'. It will help.
      Thank you for the feedback, I edited my post. Hope, it's clearer now.

      Comment


        #4
        Are the client happy to take you on via a Polish company? Maybe the client contract with the agency precludes taking on a worker except through a company contracted to the agency.

        I doubt there could be any comeback on you if you contracted direct (or through another agency) from a newly formed Polish company, since the agency are the ones who are preventing you working through them.
        Down with racism. Long live miscegenation!

        Comment


          #5
          Originally posted by qbait View Post
          Thank you for the feedback, I edited my post. Hope, it's clearer now.
          Better but not right. This is really important to understand properly. I think it is:


          My Ltd Co. contracts with the British HR agency to the German client.
          I wanna close my Ltd co. and open Polish co. (because I live in Poland now and it's more efficient).
          My HR agency said that they only contract with British Ltd companies, so I was thinking about skipping them and entering a direct contract between the German client and the new Polish co.
          However, my UK Ltd has a thing called "transfer fee" in my contract, in case I wanna work for my client directly, my UK ltd needs to pay a 30k fee for the HR agency.
          The thing is that this contract is between my Ltd co and HR agency. Does it still apply to me if I will open the new company in Poland on my name?

          Is that right?


          Probably no payment due but I would make sure there is no money in my Ltd. You also need more advice than this.

          Have you talked to the German Ltd. They may have a transfer payment clause with the UK HR agency.

          Comment


            #6
            Originally posted by Old Greg View Post
            Is that right?
            Yes, I edited my post. Thank you!


            Originally posted by Old Greg View Post
            Probably no payment due but I would make sure there is no money in my Ltd.
            I wanna close my company, so was thinking that's normal to withdraw all the money. I have my accountancy with Gorilla Accounting. I guess, they should do all closing thing for me?

            Originally posted by Old Greg View Post
            You also need more advice than this.
            Where can I find the advice? Tbh, I find it really tricky to find professional, trustworthy advices about international law.


            Originally posted by Old Greg View Post
            Have you talked to the German Ltd. They may have a transfer payment clause with the UK HR agency.
            Originally posted by NotAllThere View Post
            Are the client happy to take you on via a Polish company? Maybe the client contract with the agency precludes taking on a worker except through a company contracted to the agency.
            Actually that's a bit more complicated. The German client doesn't hire contractors directly.
            I'm hired through the HR Agency to British Digital Agency and this British Digital Agency is hired by German Client.
            I was talking to the different Digital Agency working on this project to hire me directly as a Polish company and they said it shouldn't be a problem, but I need to check myself what about the transfer fee.

            Thank you a ton for your help!

            Comment


              #7
              I think the steps are much more simpler.

              If you close your Ltd down in UK and use the Polish one, not much the HR UK company can do. Except not accommodate you. At which point they need to let the German company know that you will no longer work for them.

              At this point you go through the Polish company and get your new contract.

              I am sure that there are 100's of contractors on here that went straight to client, without providing too many details to previous agencies. I know a few, just saying, what the left hand doesn't know...

              The only problem I see, would be if someone from the HR company is still working there or they have an account manager that pops in every now and then. This means that someone will see you. Then again, it will be more problematic than worth it for them to go against their client.

              Theoretically the contract is between Old Ltd Company - HR UK Company - German Client. The new contract would be between New Polish Company - German Client. The initial contract was between your Ltd UK Company and HR UK Company, NOT you as an individual. The German Client is NOT hiring you directly, which in most cases is a breach, and mainly done to avoid direct employment. Your Polish Company is a completely new entity.

              Like I said, I doubt the amount of investigation and proof the UK HR Company would need to do, to target YOU/your UK Ltd Company as the individual breaking the contract, and potentially losing the client in the process, would be worth it for them. Not to mention that they would need to take you and your Polish Company to Court and prove all this... would they even be able to find out your Polish personal address and company address? yeah sure...

              P.S. If you close down your UK Ltd Company, make sure you claim all the benefits and whatever money you can to the max. Accountant should help with that.
              Last edited by Drei; 21 February 2019, 15:16.

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