Please I need your advice; there are few entries in this forum already in regards to this same topic though i'm not sure how current that advice still is.
So here is my situation - been contacting with company C through agency A1. I've been trading under my own ltd. company.
Going forward, company C decided to not work with agency A1 anymore so all their contracts would be outsourced by another agency - say agency A2. As a result, my contract won't be extended.
Company C expressed their eagerness in keeping in however, I find myself bound by the 12 months restriction clause which sounds as below (per my contract):
3. The Supplier shall and shall procure that the Representative shall
3.1 not during the Contract Period or thereafter for a period of 12 months either directly or indirectly (whether under a contract of services or contract for services or through any third party) provide any services to the Hirer or End User in any capacity except by contract through the Agency unless the Supplier shall first have paid to the Agency a fee of 30% of the total remuneration including the value of benefits attributed by HM Revenue & Customs agreed to be paid or provided by the Hirer or End User for the relevant period of provision of such services (but not exceeding 12 months) plus VAT;
- here "hirer" is company C
I find this clause fair since normally it would protect Agency's business; however, this won't be the case since the agency won't have a contract with the company anymore. So if I managed to stay through agency A2, I don't regard this situation as "stealing business" from agency A1 and find this clause highly restrictive - it is not allowing me to do business in this case, even though there is no conflict of interest here between myself, the two agencies and the company.
Please advice and thanks in advance.
So here is my situation - been contacting with company C through agency A1. I've been trading under my own ltd. company.
Going forward, company C decided to not work with agency A1 anymore so all their contracts would be outsourced by another agency - say agency A2. As a result, my contract won't be extended.
Company C expressed their eagerness in keeping in however, I find myself bound by the 12 months restriction clause which sounds as below (per my contract):
3. The Supplier shall and shall procure that the Representative shall
3.1 not during the Contract Period or thereafter for a period of 12 months either directly or indirectly (whether under a contract of services or contract for services or through any third party) provide any services to the Hirer or End User in any capacity except by contract through the Agency unless the Supplier shall first have paid to the Agency a fee of 30% of the total remuneration including the value of benefits attributed by HM Revenue & Customs agreed to be paid or provided by the Hirer or End User for the relevant period of provision of such services (but not exceeding 12 months) plus VAT;
- here "hirer" is company C
I find this clause fair since normally it would protect Agency's business; however, this won't be the case since the agency won't have a contract with the company anymore. So if I managed to stay through agency A2, I don't regard this situation as "stealing business" from agency A1 and find this clause highly restrictive - it is not allowing me to do business in this case, even though there is no conflict of interest here between myself, the two agencies and the company.
Please advice and thanks in advance.
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