Trying to understand handcuff clause details / Consultancy

[Andy Hallett]

If the current agency is not offering an extension or a cut then they have a very weak case. The handcuff clause is not there to stop fair competition.

Their rights are unaffected, its enforceable whether they offer an extension or not

Not to ask a very stupid question, but how will they find out?

They will likely check everyone who has finished....

Perhaps I missed it, but is "Client" in the contract clause you cited defined as the end client or the consultancy you are currently with?

As I read it, the 'Client' is the Consultancy. The clause does not prohibit 'Client of the Client' although unless you read all the definitions and the full clause then we are guessing.

Then you need to get the end client to do the talking to make sure their multiple consultancies don't get the hump. They have the contractual relationship with the consultancies and should be managing your transition to another one.

And we have a winner!!!

[BlasterBates]

Their rights are unaffected, its enforceable whether they offer an extension or not

!

What is absolutely not legal and justifiable is the abuse of these clauses by recruitment consultants at agencies,'' says Ann Swain, chief executive of the London-based Association of Technology Staffing Companies which joins and regulates 80 recruitment agencies in the UK.

So if, when contract renewal time comes up, an agency says that you must accept a lower fee to do the same job for the same client, or that you should do two jobs for the same money, just say that you will go work directly for the client if the agency insists. When the recruitment consultant at the agency threatens you with the restrictive covenant, just cite this article and warn that the consultant is out of line.

If the agency is getting a replacement in and threatening the contractor to back off, that is clearly an abuse of the handcuff clause and I would advise contacting the law firm Jones Day and they will get the Agency to back down.

[Andy Hallett]

Trying to understand handcuff clause details / Consultancy

Just because Ann says it is naughty doesn’t make it unenforceable.

He won’t contact those lawyers either, legal advice on CUK is much cheaper...