View Full Version : subcontractor to contractor move

21st August 2004, 08:00
I'm employed by a Consultancy who subcontract me to a client and they then take about 60% before paying my salary. I've decided to take the contracting route and quit this week.

I have an employment contract that says I cannot work for their clients within 6 months of leaving them, at first glance I'd accept that clause and find another client & contract, however I don't want to leave my client in the lurch and would like to carry on with them for a while.

Does anyone know of similar situations where the contractor did continue to work for the same client ?

Did they have to pay any compensation to the consultancy?
Did the consultancy take any legal action ?
Is that clause on the contract enforceable ?

I'm not trying to do a dirty trick here and have offered the consultancy the chance to act as an agency and take a reasonable % fee, but IF they are not reasonable I'd like to sign up with another agency and continue with the same client.

thanks in advance,

whats in a name
23rd August 2004, 20:51
What exactly does the contract say - look for get outs.

If you were working for say, an umbrella, or your own ltd, which is contracted with the client is that excluded ?

These limits are very difficult to enforce. If you are one of many subbies they have there they may make an effort to prevent others doing the same.

Have you chjecked with the client - their contract may prevent them employing you, or enforce penalty fees, thats more likely to be an issue, although if they really want you they can usu get away with telling the agent to get stuffed.

29th August 2004, 09:08
Most restraint of trade clauses are unenforceable.

They are put there so the agency/employer can "legitimately" threaten the client and destroy your relationship with the client, the result is you get labeled as a "trouble maker" and no-one wants to hire a "trouble maker".

You can even get corrupt client employees threatening you because your upsetting the % cut scam.