Restrictive clause in contractor agreement Restrictive clause in contractor agreement
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  1. #1

    Nervous Newbie


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    Default Restrictive clause in contractor agreement

    Hi all,

    I worked via an agency with a client for more than 4 year as a contractor. My contract was ended on 27th of March 2020. The client changed their business policy for contractors and now only hiring contractors through preferred suppliers, my agency was not in the list of preferred suppliers and hence the client said they won’t engage with that agency. I got a new role with the same client via their preferred supplier (starting from 30th March 2020).

    I have my two months invoices due with my previous agency and they confirmed on 31st march that I will get the payment for both invoices on 24th April 2020. Instead of the payment I received an email on 27th April saying you have breached the contract as you have joined the client directly and that is why it’s a compliance issue and we are stopping the invoice payment until this is addressed. I am trying to call them and contact them via email to discuss and understand but I am not getting any response only an email came saying we will come back when compliance team will provide an update.

    The contract of my previous agency says :
    1. The Service Provider and its Directors or Consultants hereby acknowledge that the Company expends significant resources in sourcing and maintaining its clients and is entitled to protect its commercial interests. The Service Provider and its Directors or Consultants shall be jointly and severally liable to pay to the Company a contractual fine equivalent to eight weeks' worth of the fee rate passing at the time where the Service Provider and its Directors or Consultants end the contract without serving the full notice period agreed and outlined in Schedule 1. The Company’s right to raise additional claims remains unaffected.

    2. Neither the Service Provider and its Directors or the Consultants shall enter into any agreement, whether directly or indirectly, to supply contract Services/services of a similar nature to the Client or a subsidiary or associated company of the Client or to the Client’s client or the Client's customers, other than through the Company for a period of 12 months following the termination of this agreement. The Service Provider and the Consultant shall be jointly and severally liable to pay to the Company a contractual fine equivalent to ‘twelve weeks' worth of fees passing for the contract at the time of the violation for each case of violation. The Company’s right to raise additional claims remains unaffected.

    Can the expert on this forum help me to suggest the way out to get my money from the agency?

    Thanks,
    Viny

  2. #2

    My post count is Majestic

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    We had exactly the same question last week and we've been over this endless times.

    Use the Google search method by typing the following in to Google.

    Handcuff site:contractoruk.com/forums

    Also search for 'agent not paying' and 'dunning'

    Did you speak to your old agent before you started just to clear the air with them first? I'm guessing not but it would have not ended in this if you had.

    In a nutshell handcuffs are only enforceable if the agents revenue stream is affected by your actions of going via different route. They aren't on the PSL so it isn't. Handcuff doesn't stand. Simple as that.

    Start dunning and mention late payment penalties (use keywords in Google search as already explained)

    Very common topic for discussion on here so go have a dig about and all will become clear.
    Last edited by northernladuk; 12th May 2020 at 15:56.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  3. #3

    I live on CUK

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    Quote Originally Posted by Viny View Post
    Hi all,

    I worked via an agency with a client for more than 4 year as a contractor. My contract was ended on 27th of March 2020. The client changed their business policy for contractors and now only hiring contractors through preferred suppliers, my agency was not in the list of preferred suppliers and hence the client said they won’t engage with that agency. I got a new role with the same client via their preferred supplier (starting from 30th March 2020).

    I have my two months invoices due with my previous agency and they confirmed on 31st march that I will get the payment for both invoices on 24th April 2020. Instead of the payment I received an email on 27th April saying you have breached the contract as you have joined the client directly and that is why it’s a compliance issue and we are stopping the invoice payment until this is addressed. I am trying to call them and contact them via email to discuss and understand but I am not getting any response only an email came saying we will come back when compliance team will provide an update.

    The contract of my previous agency says :
    1. The Service Provider and its Directors or Consultants hereby acknowledge that the Company expends significant resources in sourcing and maintaining its clients and is entitled to protect its commercial interests. The Service Provider and its Directors or Consultants shall be jointly and severally liable to pay to the Company a contractual fine equivalent to eight weeks' worth of the fee rate passing at the time where the Service Provider and its Directors or Consultants end the contract without serving the full notice period agreed and outlined in Schedule 1. The Company’s right to raise additional claims remains unaffected.

    2. Neither the Service Provider and its Directors or the Consultants shall enter into any agreement, whether directly or indirectly, to supply contract Services/services of a similar nature to the Client or a subsidiary or associated company of the Client or to the Client’s client or the Client's customers, other than through the Company for a period of 12 months following the termination of this agreement. The Service Provider and the Consultant shall be jointly and severally liable to pay to the Company a contractual fine equivalent to ‘twelve weeks' worth of fees passing for the contract at the time of the violation for each case of violation. The Company’s right to raise additional claims remains unaffected.

    Can the expert on this forum help me to suggest the way out to get my money from the agency?

    Thanks,
    Viny
    Google "dunning" or contact Safe Collections. They owe your company the money. Whether they have a claim for damages following breach of contract is a separate issue, but it's hard to see how you have caused them any damage if the client won't do business with them.
    Quote Originally Posted by Bean
    I admit that I'm a lazy lying cretin, but so what?
    25 June 2018

  4. #4

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