Non payment clause by client

[WaxLyrical]

Hi Forums,

This would be my second contract, but the first was very different. In the first I was a Sole Trader who invoiced the client company directly. My new position, should it work out, would be via an agency.

I read an excellent book on contracting over the weekend, and spoke to a friend. From these sources, I understood that my contract would be with the agency. I supply time sheets, and they pay me. Client non-payment to the agency would not be my concern. However, I notice a clause on the paperwork that if the agency is not paid, they won't pay me. Is this normal, or lawful in the UK?

Thanks,
WaxLyrical!

[northernladuk]

Read up on Out in/out. There is a huge thread stickied about it. Also scroll back some of the posts in the last week or so as we had exactly this situation at least once and discussed it in great detail. That clause is standard but it's trumped by your out in/out status if you have got the right one. Could be too late if you have already been introduced though.

You won't be able to be a sole trader through and agent. You will need a limited company.

[WaxLyrical]

Thanks

Thanks, NorthernLadUK

Contract doesn't specifically mention the Conduct of Employment Agencies 2003. There is a clause that says if the client isn't paid, the agent has the right not to pay me. Also, that I can't work for the client but through the agency for 6 months after the contract finishes. I've hired a solicitor to look through it for me, so we'll see what she says. I've had an interview with the client, and am awaiting his final acceptance.

Cheers,
WaxLyrical

[LondonManc]

Thanks, NorthernLadUK

Contract doesn't specifically mention the Conduct of Employment Agencies 2003. There is a clause that says if the client isn't paid, the agent has the right not to pay me. Also, that I can't work for the client but through the agency for 6 months after the contract finishes. I've hired a solicitor to look through it for me, so we'll see what she says. I've had an interview with the client, and am awaiting his final acceptance.

Cheers,
WaxLyrical

This is quite a common clause - it's to stop you ditching the agent and going direct to get a bigger wedge for yourself after they made the effort to introduce you.

[SueEllen]

Get the solicitor to remove the payment clause regardless if you are opted-out.

The handcuff clause may be enforceable or may not as it depends who the end client is. However it's perfectly legal and is common in all sorts of workers contracts.

[Safe Collections]

Get the solicitor to remove the payment clause regardless if you are opted-out.

This. Do not accept a "pay when paid" clause.

The agency want you to make money for them but they are unwilling to shoulder the financial liability for your fees. In our opinion you can't have one without the other...

[billybiro]

I read an excellent book on contracting over the weekend

Out of curiosity, what was the book?

[WaxLyrical]

Books

Actually I read two books.

The first was "The Quick and Easy guide to IT contracting" Sekuloski
The other was, the more expensive, "Contractors handbook" Chaplin.

I'd recommend the former first, as it's only about 70 pages. We'll see if the knowledge helps me in the days that come!

Thanks for the advice all.
WL

[northernladuk]

This is quite a common clause - it's to stop you ditching the agent and going direct to get a bigger wedge for yourself after they made the effort to introduce you.

Which is sadly a misconception as won't necessarily get the agencies commission just because you are direct.

[LondonManc]

Which is sadly a misconception as won't necessarily get the agencies commission just because you are direct.

Correct but I'd be asking for half of it to cover the extra risk/effort that I'm taking on.