Handcuff question (a little complicated)

[zxof]

Hello, apologise for the familiar question but it seems my situation is slightly different.


Current situation: Myself --- My ltd company --- Agency A --- Company X --- Client

Potential new situation: Myself --- My ltd company ---- Agency B ---- Client


Currently the Client have a contract with Company X, which is ending shortly.
The client are keen on keeping me, although nothing official yet, they mentioned the relationship with company X will be terminated hence it's only possible to offer me a contract through Agency B.

I have this handcuff policy with Agency A which preventing me to offer the service directly or indirectly with the Client.

Any suggestion what I should do? I am quite confused. I dont have any problem with Agency A, they've been quite helpful in the past but it's the Client that no longer has any relationship with Company X.


Thanks in advanced.

[tractor]

...

Hello, apologise for the familiar question but it seems my situation is slightly different.


Current situation: Myself --- My ltd company --- Agency A --- Company X --- Client

Potential new situation: Myself --- My ltd company ---- Agency B ---- Client


Currently the Client have a contract with Company X, which is ending shortly.
The client are keen on keeping me, although nothing official yet, they mentioned the relationship with company X will be terminated hence it's only possible to offer me a contract through Agency B.

I have this handcuff policy with Agency A which preventing me to offer the service directly or indirectly with the Client.

Any suggestion what I should do? I am quite confused. I dont have any problem with Agency A, they've been quite helpful in the past but it's the Client that no longer has any relationship with Company X.


Thanks in advanced.

Your situation is no different really to any of the several recent posts on the matter.

Are you properly opted out and what is the length of the handcuff clause? What remedies are provided for Agency A in the contract?

Further complicating any question like this is what conditions have the entities in the chain above Agency A entered into? These may have a bearing also.

[zxof]

Thanks for responding.

I rechecked my contract and email exchanges. There's nothing about asking me to opt out IR35 (this is my first time contracting so I am a little lost). the handcuff clause indicate up to 12 months. Otherwise there's certain percentage of fees need to be paid.

The Client told me that they have no direct relationship with Agency A, so there's not much they can interfere.

Do you think it's wiser to simply look for another job/contract? Or is it wise to talk to Agency A (it's one of the big one) to talk about the situation?

[tractor]

...

Thanks for responding.

I rechecked my contract and email exchanges. There's nothing about asking me to opt out IR35 (this is my first time contracting so I am a little lost). the handcuff clause indicate up to 12 months. Otherwise there's certain percentage of fees need to be paid.

The Client told me that they have no direct relationship with Agency A, so there's not much they can interfere.

Do you think it's wiser to simply look for another job/contract? Or is it wise to talk to Agency A (it's one of the big one) to talk about the situation?

You don't opt out of IR35, it's the Conduct Regulations. If you have signed nothing, you are not opted out and the agent can hold you to 14 weeks from the start or 8 weeks from the end of the engagement.

In any event most courts would hold 12 months as unenforceable because it is considered restraint of trade. That is not to say that 12 months is always unenforceable because there is always the exception.

There are enough resources here and elsewhere to prevent you from being a little (or a lot lost); you just have to be bothered to look it up. Start with the stickies in the professional forums and the links on the right.

If Agency A takes Agency B to court and the whole chain follows suit, there is a potential knock on effect that may have a bearing on you and any potential relationship between you and the client. Lots of if's there. You would need a proper professional review of the contract before taking any action, I would suggest.

[BlasterBates]

I don't see any problem here, go ahead.

There is a very faint theoretical risk that isn't worth worrying about.

This has been so debated many times here. Have you actually met a contractor that has been sued because of a handcuff clause.

The truth it is there to as a bit of a deterrant and once the agent has transferred the last payment into your account it is done and dusted.

[northernladuk]

Opt out of IR35 lol.. The force is not strong with this one.

[Bozwell]

Opt out of IR35 lol.. The force is not strong with this one.

Be nice if you could though. Actually even better would be an opt out of Corporation and Income tax.

[tractor]

....

Opt out of IR35 lol.. The force is not strong with this one.

Sadly, it is not the first time this has been misunderstood.