Anyone been in this situation Anyone been in this situation
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  1. #1

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    Default Anyone been in this situation

    Contractor (Ltd Company)
    Agency
    Client
    End Client

    The Contractor is contracted to the Agency and the Agency supplies the Client. The Client is providing services to the End Client. Basically, the Client provided a team to the end Client.
    The engagement of the Client providing services to the End Client has now come to an end and also the contract between the Contractor and Agency has also finished.
    The End Client does not need the full team supplied by the Client but wishes to continue to engage the services of the Contractor. The End Client wishes to do this through an entirely different Agency as this is standard company policy.
    There is a clause in the Contractors contract (the original contract between the Contractor and the Agency) that states:
    The Contractor will not accept work, provide services or products directly to the Client or End Client during the period of this contract or for a period of six months from the termination of this contract without the written consent of the Company.

    Question: Can the contractor work for the new Agency without violating the original contract bearing in mind he is not “providing services or products directly to the Client or End Client” since he is working for the new agency.

  2. #2

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    Quote Originally Posted by AlfieDog View Post
    Contractor (Ltd Company)
    Agency
    Client
    End Client

    The Contractor is contracted to the Agency and the Agency supplies the Client. The Client is providing services to the End Client. Basically, the Client provided a team to the end Client.
    The engagement of the Client providing services to the End Client has now come to an end and also the contract between the Contractor and Agency has also finished.
    The End Client does not need the full team supplied by the Client but wishes to continue to engage the services of the Contractor. The End Client wishes to do this through an entirely different Agency as this is standard company policy.
    There is a clause in the Contractors contract (the original contract between the Contractor and the Agency) that states:
    The Contractor will not accept work, provide services or products directly to the Client or End Client during the period of this contract or for a period of six months from the termination of this contract without the written consent of the Company.

    Question: Can the contractor work for the new Agency without violating the original contract bearing in mind he is not “providing services or products directly to the Client or End Client” since he is working for the new agency.
    Start a new Ltd (actually I'm fairly sure that is a bad idea but can't think why - any ideas anoyne?)
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    I admit that I'm a lazy lying cretin, but so what?
    25 June 2018

  3. #3

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    Your question has been answered by the contractor doctor in this article.

    Contract Violation? - Breach of Contract - Contractor Weekly
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #4

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    Quote Originally Posted by Old Greg View Post
    Start a new Ltd (actually I'm fairly sure that is a bad idea but can't think why - any ideas anoyne?)
    Me me me.. I know I know.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  5. #5

    Contractor Among Contractors


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    Ask the original Agency, how much "blood" money they want to wave the restriction, then converse with end client whether they are prepared to pay the cost or split it with you.

  6. #6

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    You would probably technically be in breach of contract.

    It would be up to the agency to prove that they had suffered loss if they wished to make a claim against you. That would probably be difficult for them to prove from what you've said. And of course they might not ever find out.

    If you do it without negotiating and they find out you've burned a bridge and they likely won't work with you again. They might also be able to poison the Client against you so they wouldn't work for you again.

    There's also a risk that their contract with the Client, and the Client's contract with the End Client, precludes this, and that the net result would be a bun fight that loses you the contract after all, just because the End Client doesn't care about having you THAT much.

    So if it were me I'd tell the agency and ask, given the fact their relationship with the end client is now terminated and it isn't really costing them anything anyway, what consideration would they want to release you from this clause if you decided you want the contract. If they come back with a relatively small amount, I'd do it and be clear of the matter. If they want stupid money, I'd not pay and decide whether you want to take the risk of them finding out and getting into a fight.

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