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Switching agencies - contract clause valid ?

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    Switching agencies - contract clause valid ?

    Hi

    Situation is, have been contracting with end client for 4 years and they want to renew contract, however contract is through a 3rd party supplier, who then use an agency to employ me, so - end client - 3rd party - agency - me. Contract with agency came to a natural end this week with the usual lack of contact from them, no chasing of renewals or anything. 3rd party no longer wish to use the agency as they are not a preferred supplier and client has issued 3 month renewal with 3rd party. My, now lapsed, contract with agency has this clause in it, how valid is this really, especially if the contract has lapsed and they are not actively chasing renewal, and the 3rd party don't use the agency now ?

    thanks


    "not during the Contract Period or thereafter for a period equivalent to the period of this Contract or, where there has been more than one Assignment between the Company and us within the last two years, for the total period of all Assignments within the last two years with the relevant Client (but not being less than 3 months nor more than 12 months) either directly or indirectly (whether under a contract of service or contract for services or through any third party) provide any services to the Client in any capacity except by contract through us unless the Company shall first have paid to us a fee of 200f the total remuneration including the value of benefits attributed by HM Revenue & Customs agreed to be paid or provided by the Client for the relevant period of provision of such services (but not exceeding 12 months) plus VAT; but this provision shall not affect the Company if it is, and has notified us that it is, an Umbrella Company and the services referred to are services that (i) have not been sourced by us or do not result from the introduction by us of the Company to the Client, and (ii) are not performed or provided by the Representative"

    #2
    If the agency is definitely no longer in the supply chain ie the 3rd party nor end client will use the agency again, then I dont see how the clause can be upheld since they have and will not suffer any financial loss as a result of you accepting a new contract.

    However, it may be worthwhile getting a legal opinion on this just to be certain.
    I couldn't give two fornicators! Yes, really!

    Comment


      #3
      Agencies have a habit of backing down once they realise you have an experienced solicitor. So get qualified legal opinion.

      If the clause is invalid and the old agency threats you get the solicitor to tell them in no uncertain terms you will be taking them to court for the full value of your contract if they make you lose it.
      "You’re just a bad memory who doesn’t know when to go away" JR

      Comment


        #4
        any ideas on who can give me some legal advice on this. I did think about just calling the agency and informing them of the situation, then hoping for some goodwill, but I'm not sure they know they are no longer a preferred supplier.

        Cant believe these clauses are valid as they effectively prevent me from working in this particular situation.

        thanks

        Comment


          #5
          You maybe need to get your head around what Agencies do for a living. It's not match people to jobs (or vice versa), it's make money. The contract is written to ensure they keep the revenue stream. If that stops for any reason - like you having to move to another agency, taking their revenue stream with them - they have zero interest in changing anything, least of all a binding contract. Why would they willingly give money to a commercial rival?

          The escape clause is the test of reasonableness. If there is genuinely no prospect of further income from the client, then it is unreasonable of them to restrict you continuing to work in the current role. Any solicitor worth his salt can write that letter so go talk to one. They will give your half an hour for free to talk over the subject.
          Blog? What blog...?

          Comment


            #6
            Originally posted by coxsox View Post
            . I did think about just calling the agency and informing them of the situation, then hoping for some goodwill, but I'm not sure they know they are no longer a preferred supplier.
            You are welcome to call your agency just expect them to go behind your back and threaten the supplier with legal action as soon as they have got of the phone with you.

            Take the advice given 3 times on this thread to go and see a solicitor. Do this first before talking to the agency.

            Oh and if you want help in finding a solicitor there are many news articles on this website written by solicitors.
            "You’re just a bad memory who doesn’t know when to go away" JR

            Comment


              #7
              Originally posted by coxsox View Post
              I did think about just calling the agency and informing them of the situation, then hoping for some goodwill, but I'm not sure they know they are no longer a preferred supplier.
              NO! Do not whatever you do contact the agency.

              They have NOTHING to lose from getting straight on to the client threatening legal action. I don't think they have a strong case but they will do their best to bugger up your chances of getting the contract and make the client drop you because you are too much trouble....

              Say NOTHING, don't update your linked-in profile etc. If and when they ever catch up with you, you can deal with it then.

              Originally posted by coxsox View Post
              Cant believe these clauses are valid as they effectively prevent me from working in this particular situation.
              Did you sign the opt out? If you didn't then they are not enforceable.
              Free advice and opinions - refunds are available if you are not 100% satisfied.

              Comment

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