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Fallout between agency + client. My Ltd stuck in the middle

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    Fallout between agency + client. My Ltd stuck in the middle

    Hi Everyone

    Hoping for a little advice.

    I have been working through an agency at the same client for 2.5 years. The client wants the agency to sign up to new t&cs. the agency does not want to sign these T&cs. This puts my company (and 5 others) in a position where we cannot work for the client through this agency.

    The client wants to employ us but cannot employ is via the agency. They are happy with us to use another agency that has signed up to the terms and conditions (for transparency).

    I am struggling with my position, I do not think that its fair that I am pushed out of a job because my agency falls out with my client.

    There is a contract between my company and the agency, there are various clauses which say I cannot work for the client for a period of 6 months. How reasonable would this be to enforce? if the client cancels the contract doesn't the client stop being "the client" therefore the clause is void?

    I can share this with people if required.

    #2
    Originally posted by CTS View Post
    if the client cancels the contract doesn't the client stop being "the client" therefore the clause is void?
    Yes

    The point of these clauses is to prevent loss of business. If the client will no longer work with the agency then there is no business to lose.
    Still Invoicing

    Comment


      #3
      If you didn't opt out in writing before being introduced to the client, then you can go direct after an 8 week break without anyone having to pay any fees.

      If you changed agency and ignored the current one, then they could come after you for damages. I've seen it said here before that the agency can only go after you for their loss, which since they aren't losing anything (they have no chance for you to work with the client) then they can't get anything. Whether that is true or not, I don't know - I'd like to see a case reference or statute which clearly states it.

      Assuming that is true, the question comes whether there is anything between the client and the current agency which means that the agency could go after the client for compensation. That's a matter for the agency and client to thrash out, though.

      Assuming that isn't true, then you'd have to see what penalty is likely if the agency were to sue you and win.

      Ring the PCG legal help line (I assume you're a member) and see what they say about whether you could be sued for breaking the contract.
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      Comment


        #4
        hi, Thank you both.

        I can confirm that I did not opt out (I was unaware about the implications when I signed the contract between my Ltd and the agency).

        The client (big oil company) has confirmed there is nothing between them and the agency to say they cannot do what they are doing. Id assume that if they are happy to cancel the agreement then they know the implications.

        The only sticky situation appears to be between my ltd and the agency. I would agree with you regarding the loss of earnings, the position will not exist for them to fill so they will be losing the position by consciously not agreeing to the terms. There is no penalty/punishment stated in my contract, it just states that I cant do it.

        I have contacted two independent legal advisors (close friends) and they have said that yes there is a clause but its not very enforceable. I have also contacted a law firm in order to pre-empt any fallout and see where I stand.

        Personally feel that I am going to fine BUT the fear is there and it is quite stressful. Its also very annoying that I am being forced from a job I enjoy due to a 3rd party!

        Comment


          #5
          Hi Thanks to both (my reply didn't work > this may be my 3rd reply!!!)

          ---
          I can confirm that I did not opt out. I was unaware of that clause when I started. Fool me once!

          I can confirm that there is nothing between the client and agency - confirmed by client (big oil company). So I would assume that any risk they are willing to take cancelling this agreement they will accept.

          In the contract between my LTD and the agency there is nothing mentioned about a punishment or any repercussion. It only says I cannot do it.

          After speaking with a couple of my legal minded friends they have said that yes there is a clause but its going to be hard to enforce. I have called the PCG helpine (waiting on a call back) and I have also contacted a legal firm to discuss what my position may be.

          Very frustrating that ive be put in this position and may be forced out of a job due to a 3rd party!

          Comment


            #6
            Originally posted by blacjac View Post
            Yes

            The point of these clauses is to prevent loss of business. If the client will no longer work with the agency then there is no business to lose.
            Totally this. The handcuff is totally useless. No way would any court enforce this clause as you are in a no win situation. You can't go through the agency as they have binned the business with the client and you can't go direct. No one in their right mind would think that is an acceptable situation and breaches your rights to work.

            No brainer this one. If the agency ditch the client they have no further business to protect. Handcuffs have to be fair and have demonstrable loss the agent for them to have a chance of standing up. This situation is neither of these.

            Point this out to the agent along with a couple of links mentioning this and you should be find and dandy.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Yep, agree with the above. The test a court would apply is one of "reasonableness" - as in "Is it reasonable to the man in the street that the agency can prevent you moving to another agency?". Clearly, since the business is already lost, it is not reasonable and hence the clause in unenforceable; to do so would represent restraint of trade, which is whole other can of worms.

              I would start negotiating with the new agency to novate the contract over and maybe reduce their margin a touch since you are brining them the business...
              Blog? What blog...?

              Comment


                #8
                Originally posted by CTS View Post
                In the contract between my LTD and the agency there is nothing mentioned about a punishment or any repercussion. It only says I cannot do it.

                After speaking with a couple of my legal minded friends they have said that yes there is a clause but its going to be hard to enforce. I have called the PCG helpine (waiting on a call back) and I have also contacted a legal firm to discuss what my position may be.
                Originally posted by northernladuk View Post
                Totally this. The handcuff is totally useless. ...

                Point this out to the agent along with a couple of links mentioning this and you should be find and dandy.
                Personally, I wouldn't be engaging any dialog with the agent whatsoever.

                Let the agency second guess your position with the client (who should also be blanking them). Save your time, energy and cash - don't get lawyer involved until & unless they do so first (or if they fail to pay the final invoice).

                Comment


                  #9
                  Originally posted by Contreras View Post
                  Personally, I wouldn't be engaging any dialog with the agent whatsoever.

                  Let the agency second guess your position with the client (who should also be blanking them). Save your time, energy and cash - don't get lawyer involved until & unless they do so first.
                  I would just on a proactive basis to attempt to get them to back off. It's too late to start arguing with them once all hell has broken lose as there is a chance the client will drop the contractors or the new agency won't want anything to do with the situation. If you can point out that you are well informed and know your legal position there is a chance the agency may back off before the mud slinging starts.

                  Lawyers won't get involved as is the case in nearly everything to do with agents but they can certainly screw it up by scaring people off with the threats.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Thank You very much everyone. This reinforces my own views.

                    I do think that it will get messy but unsure what exactly I would be sued for. I haven't stolen a position from the agency. The agency has terminated its agreement with the client.

                    as of the 12th June I would effectively be out of work.

                    if the agency offers me a new position at another client (that I do not want) does that change anything?

                    Comment

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