Would you forfeit 20% of your contract value?

[Xenophon]

Current client has ended their relationship with my current agency and offered my ltd co. a new contract next year via their new agency.

An exclusion clause (or whatever it is called) in my contract prevents my ltd co. from working at the same end client either directly or via a different agenct for a year. The clause states that my ltd. co must pay the old agency 20% (min 3months, max 12months - based on new contract length).

Anyone any experience of paying out on this?

PSG Legal Helpline say if I sign new contract I ought to be prepared to cough up.

Client sees it as a contractor-agency issue (understandably, because it is).

[Crossroads]

Will your old agency find out? If they do, will they pursue your Ltd for the 20%? If this is a certainty, then negotiate with them in advance - they are going to get 0% as things stand, so they may be flexible.

Depending upon the wording of the existing / old contract, can you form a new Ltd, use that instead?

[BolshieBastard]

pcg are ******* useless. They should be taking this up as an ideal test case. But will they?

I wont hold my breath.

TBH, I'd take the role and **** the old agent off. Since they have failed to retain a place on the clients PSL, I dont see how they can make their clause stick.

[rootsnall]

Current client has ended their relationship with my current agency and offered my ltd co. a new contract next year via their new agency.

An exclusion clause (or whatever it is called) in my contract prevents my ltd co. from working at the same end client either directly or via a different agenct for a year. The clause states that my ltd. co must pay the old agency 20% (min 3months, max 12months - based on new contract length).

Anyone any experience of paying out on this?

PSG Legal Helpline say if I sign new contract I ought to be prepared to cough up.

Client sees it as a contractor-agency issue (understandably, because it is).

Are you the worrying type ? If not then I would think you'd get away with not coughing up, but may have to take a bit of flak in the process.

I don't really know, but would think there is some legal argument around restraint of trade when your current agent is effectively the one breaking the relationship. ie. they are not offering you more work with the client.

The PCG Helpline is so so for contractor specific stuff like this. I approached PCG directly with a different legal matter and managed to speak to somebody better qualified in the world of contracting.

ps. send a letter/email to the existing agent saying you are more than happy to continue at the client if they can provide the work

[RichardCranium]

Current client has ended their relationship with my current agency

So what happens to your current contract? Has it come to an end? Or is it being terminated?

and offered my ltd co. a new contract next year via their new agency.

At this point I would contact my current agent and say "sort this out". It is not for the client to impose an agency.

An exclusion clause (or whatever it is called) in my contract prevents my ltd co. from working at the same end client either directly or via a different agency for a year.

Fair enough (not as fair as 6 months, but still.)

The clause states that my ltd. co must pay the old agency 20% (min 3months, max 12months - based on new contract length).

I really, really do not feel you should be taking a hit on this at all. It is not your doing.

Client sees it as a contractor-agency issue (understandably, because it is).

Is it f**k. It is a client-agency issue caused by the client.

I would have thought the solution to aim for would be:

- client continues paying same rate;
- new agency takes 4% as you are already on the client site;
- old agency becomes the supplier to new agency instead of the client;
- old agency continues to pay you your current rate;
- old agency gets the remaining margin.

That way old agency is getting something, new agency gets no more than they deserve and neither you nor client are affected.

There is no way you should be losing out - that is you being shafted by the client to pay their new agency something for nothing. What happens when they change their PSL again in another 3 months?

[MPwannadecentincome]

pcg are ******* useless. They should be taking this up as an ideal test case. But will they?

I wont hold my breath.

Malvolio got anything to say on this one?

[0mega]

PCG give different advice according to who you get on the day, so they tend to be a little inconsistent. For instance one helpline guy told me that in the three years he'd staffed the PCG helpline, no agency had ever won a restraint of trade case against a contractor that returned to a client... the next day a woman told me I'd probably get shafted by the restraint clause!

Read the contract extremely carefully; if it really does only mention your limited company by name and doesn't mention you personally, then just start a new company and use it for the duration of the new contract.

[Not So Wise]

*sigh* Feel like and old record *sigh*

An exclusion clause (or whatever it is called) in my contract prevents my ltd co. from working at the same end client either directly or via a different agenct for a year.

Did you properly opt out of agency regulations (signing a piece of paper saying you opt is not enough unless it is done at at the right time), because unless you did (unlikely) that clause is either partially or totally null and void

For the rest see RC's post

[ASB]

because unless you did (unlikely) that clause is either partially or totally null and void

Is it really that simple? I know there is a 6 or 8 week max under the regs but I though it had to be an actual break in working.

[RichardCranium]

This isn't meant as patronising, but have you asked your current agency if they will let you transfer to the new agency for gratis? You're not the guilty party in this and they have nothing to gain from forcing you to walk. And they might be glad to be shot of the client.