Transferring to a separate/different entity. Transferring to a separate/different entity.
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  1. #1

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    Question Transferring to a separate/different entity.

    I am looking for some advice on a situation I find myself in.

    I have been on a contract for 9 months working for a major company. They are in a joint venture with an investment firm who owns 50% of this entity. I have been asked to move over to this entity to undertake some project work.

    The question is the current contract has the usual protections regarding joining the client etc... Do I have to stay with the current contract/Agent for the new role with the new entity or can it be treated as something completely separate.

    Any advice/help will be greatly appreciated.

  2. #2

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    What does your contract say; specifically regarding associated companies?

    Noting that "joint ventures" will be different from corporate groups at the like.
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  3. #3

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    Who has asked you to move and do the work?

    Sounds very much like D&C if they are asking you to do other stuff but can be worked around with paperwork in this instance but if they have are using you like a perm resource then no amount of paperwork will help.
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  4. #4

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    Quote Originally Posted by wattaj View Post
    What does your contract say; specifically regarding associated companies?

    Noting that "joint ventures" will be different from corporate groups at the like.
    Contract says

    "without the Employment Business’s prior written consent, enter into a similar contract of service or for services with the Client, any member of the Client’s Group or any client or supplier of the Client’s Group with whom the Company and/or the relevant Contractor had material contact during the Assignment".

  5. #5

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    Quote Originally Posted by 400rvg View Post
    Contract says

    "without the Employment Business’s prior written consent, enter into a similar contract of service or for services with the Client, any member of the Client’s Group or any client or supplier of the Client’s Group with whom the Company and/or the relevant Contractor had material contact during the Assignment".
    So they're asking you to change agency? Or asking you to work with their partner via the same agency?

    Also, do you have to accept the work?

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    Quote Originally Posted by 400rvg View Post
    Contract says

    "without the Employment Business’s prior written consent, enter into a similar contract of service or for services with the Client, any member of the Client’s Group or any client or supplier of the Client’s Group with whom the Company and/or the relevant Contractor had material contact during the Assignment".
    You need to give us the whole picture and not just drip feed. The above is there to stop you going to a different part of the business under a different agent. If the client wants you to work elsewhere but keep your current engagement via the agent then there is no problem at all. Agent still keeps earning their money and happy days.

    If the client wants to put you somewhere else under a new contract with new agency you are going to have to negotiate. The handcuff is only valid if the agency can prove a loss. If the new area has a different agent and the existing agent can't make any money then they can't prove loss and the handcuff won't stand.
    That won't stop the existing agent kicking up such a fuss the client drops you.

    More information.. detailed..
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    Quote Originally Posted by 400rvg View Post
    Contract says

    "without the Employment Business’s prior written consent, enter into a similar contract of service or for services with the Client, any member of the Client’s Group or any client or supplier of the Client’s Group with whom the Company and/or the relevant Contractor had material contact during the Assignment".
    Is the new entity:
    1. Part of the Client's Group?
    2. A client or supplier of the Client's Group with whom you've had material contact during the Assignment?

    If not, you can accept a new contract without worrying about the agency.

    The answer to #1 probably depends on how the contract defines "Group".

    The answer to #2 depends on whether the joint venture is a client or supplier of the "Group" and whether you had material contact with the joint venture during the Assignment. If you've been working side by side with their people, you've had material contact. If your client said to them, "This guy has done a great job for us, you should talk to him," and so you sat down to lunch with them, that's probably not material contact.

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