Contract handcuff clause query Contract handcuff clause query
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  1. #1

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    Post Contract handcuff clause query

    Hi all,

    Hoping for some advice from the experts on here. I have done plenty of searching on the forums, but could do with some input from those who may be closer to this, or have been in a similar situation.

    Situation is that my current contract ended in February, as end client made the decision no more PSCs. They also ended the contract with the Agency I was supplied through around the same time. I've been on the bench since then, but end client has approached me directly to come and work for them perm. Given current situation, I'm happy to do this. Issue arises with the non-solicitation clause in my contract, and the standard 'for the duration of this agreement and 12 months afterwards...' part, although no mention of any specific terms or details for breaches of this bit. The Agency are aware and are insisting on payment to release me from this clause. Payment in this case of around 30-40% of annual salary for this role.

    From my reading, my understanding was that as the Agency no longer have a financial interest, they can't argue they are suffering a financial loss, so can therefore whistle for payment?

    I might have picked this bit up wrongly, so apologies in advance, but would like to know where I stand.

    Many thanks

  2. #2

    My post count is Majestic

    northernladuk's Avatar
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    Correct.

    /thread
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  3. #3

    bored now

    eek's Avatar
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    Quote Originally Posted by northernladuk View Post
    Correct.

    /thread
    +1 the issue is between the end client and the agency, just point in whoever asks in the appropriate direction.
    merely at clientco for the entertainment

  4. #4

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    Quote Originally Posted by eek View Post
    +1 the issue is between the end client and the agency, just point in whoever asks in the appropriate direction.
    There is no issue. Start as a perm, but to save any calls don't put the company on your LinkedIn profile any time soon.

    If they cannot provide the service that you required (i.e. perm agency recruitment) then there's no loss to demonstrate. As NLUK says, OP has correctly researched and is spot on.
    The greatest trick the devil ever pulled was convincing the world that he didn't exist

  5. #5

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    Andy Hallett's Avatar
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    The risk to you turns on whether you have opted out of the regulations and whether the agency can prove an effective opt out. (You will note that I have made a distinction).

    It is unusual for agencies to go after contractors as they are 'men of straw'.

    The bigger issue will be between your client and the agency which may make the issue economically unviable for them.

    I am happy to run through it with you personally as long as the agency isn't a customer and creates a conflict for me.

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