Restriction Clause help needed

[northernladuk]

I was in the understanding that by the agent not paying me that would also render the contract nullified, from what I have been reading in law forums it seems to be the case., plus if a clause it too restrictive it cannot be enforced. No wonder people in Europe don't care about these clauses since they don't recognize enslavement.

I'm not so sure that's right. The fact you can explain it in one sentence would tell me you've not got it right. Generally the party that can prove a loss have the upper hand. If all contracts became void at payment issues there would be nothing in existence to then take to court etc.. if you get me.

Late payment, as far as I am aware, isn't a default breach. My current agent would be utterly screwed if it was

[MonkeysUncle]

As mentioned on here you need to speak to a solicitor if you haven't already. Your set up sounds too complicated to be getting any real answers here or (I imagine) on a law forum.

Good luck and I hope it all works out for you.

[ComplianceLady]

Hello, I've not read every post so apologise if I'm duplicating. The restriction clause preventing you from engaging with the end client directly or through another 3rd party for 6 months is fairly standard. The ability to withhold your current fees in respect of a future liability will be set out if a 'setting off' clause and is perfectly legal.

Your contract (presuming what you've said is reflected properly in the contract) sets out that you cannot engage with the client for 6 months after the end of your contract and presumably sets out a penalty if you do. You've breached this part of the agreement and the agency have suffered a loss as a result. They are entitled to recover this from you and /or the penalty set out in the contract.

You can of course fight them by seeking to recover your pay and disputing any legal action they take but it's highly likely they will win any legal dispute.

[themindseye]

Hello, I've not read every post so apologise if I'm duplicating. The restriction clause preventing you from engaging with the end client directly or through another 3rd party for 6 months is fairly standard. The ability to withhold your current fees in respect of a future liability will be set out if a 'setting off' clause and is perfectly legal.

Your contract (presuming what you've said is reflected properly in the contract) sets out that you cannot engage with the client for 6 months after the end of your contract and presumably sets out a penalty if you do. You've breached this part of the agreement and the agency have suffered a loss as a result. They are entitled to recover this from you and /or the penalty set out in the contract.

You can of course fight them by seeking to recover your pay and disputing any legal action they take but it's highly likely they will win any legal dispute.

Ok so basically since this company had no way of getting the contract and I in effect have another contract, different role with the same end client I lose the ability to ever work in the industry again.
Considering also they are a recruitment agency and have multi skilled people in many jobs my leaving is not detrimental to them but I assure you if the clause is upheld I will never work again and that's guaranteed.
There was no setting off clause in the contract

[northernladuk]

Hello, I've not read every post so apologise if I'm duplicating. The restriction clause preventing you from engaging with the end client directly or through another 3rd party for 6 months is fairly standard.

It might be but it's so badly written in many contracts it's virtually unenforceable. In ours anyway.

The ability to withhold your current fees in respect of a future liability will be set out if a 'setting off' clause and is perfectly legal.

It might be but I very much doubt it's in his contract. I've never seen it or heard of anyone that has this in our line of work

Your contract (presuming what you've said is reflected properly in the contract) sets out that you cannot engage with the client for 6 months after the end of your contract

Probably

and presumably sets out a penalty if you do.

I very much doubt this. Again, I've never seen it.

You've breached this part of the agreement and the agency have suffered a loss as a result. They are entitled to recover this from you and /or the penalty set out in the contract.

Which there isn't so it's for the agent to prove.. which in most cases they can't so it's unenforceable. I've forgotten the situation in this thread to comment on the actual.

You can of course fight them by seeking to recover your pay and disputing any legal action they take but it's highly likely they will win any legal dispute.

Generallyy not in our cases. We don't have the penalty and we certainly don't have the setting off clause so it's pretty clear that the agency need to pay the contract and then set out legal proceedings for breach.

[northernladuk]

Ok so basically since this company had no way of getting the contract and I in effect have another contract, different role with the same end client I lose the ability to ever work in the industry again.
Considering also they are a recruitment agency and have multi skilled people in many jobs my leaving is not detrimental to them but I assure you if the clause is upheld I will never work again and that's guaranteed.
There was no setting off clause in the contract

Where does it say you will never work in the industry again?

[themindseye]

Where does it say you will never work in the industry again?

ok it says:

you will not at any time during the period of the contract or within 6 months following termination of the contract, knowingly service or deal with xxxxxxxxxx or any group or associate companies of xxxxxxxx without the written permission of our company.

That basically covers every single vendor the client uses which means effectively stopping me working for anyone again. Name a Software company and they use them so basically my programming career is done.

They were never going to get a contract again as they were not allowed to bid for it, what they did hope for was the original company who was allowed to bid would simply offload the contract to them for a fee.

[WTFH]

ok it says:

you will not at any time during the period of the contract or within 6 months following termination of the contract, knowingly service or deal with xxxxxxxxxx or any group or associate companies of xxxxxxxx without the written permission of our company.

That basically covers every single vendor the client uses which means effectively stopping me working for anyone again. Name a Software company and they use them so basically my programming career is done.

They were never going to get a contract again as they were not allowed to bid for it, what they did hope for was the original company who was allowed to bid would simply offload the contract to them for a fee.

6 months does not equal “never again”.

And if you only ever have one client, you’re a disguised employee, not a contractor.

Your career is not done because you have a 6 month exclusion on working for one client.

[northernladuk]

6 months does not equal “never again”.

And if you only ever have one client, you’re a disguised employee, not a contractor.

Your career is not done because you have a 6 month exclusion on working for one client.

This. Plus, as has already been mentioned, it's only enforceable if any loss can be incurred by the party putting the clause in really in most cases you either don't need to bother informing them but if there is any doubt they are still most likely to let you go ahead.

So you are making one hell of a lot of noise over next to nothing.

[themindseye]

This. Plus, as has already been mentioned, it's only enforceable if any loss can be incurred by the party putting the clause in really in most cases you either don't need to bother informing them but if there is any doubt they are still most likely to let you go ahead.

So you are making one hell of a lot of noise over next to nothing.

I'm not making noise over nothing considering I already received lawyers letters from them requesting I leave my new contract now, pay them a large sum of money and no longer work for them or all affiliates for 6 months.

It's in the hands of my lawyer now and he's instructed to raise court proceedings.