Agency terminated contract to change thier T&C's
Discussion
So the agency want to change the payment terms in my current (IT) contract that has another 2 and a bit months left. They terminate the contract with 5 days notice and send my umbrella company a new contract which means I will be working 7 weeks in arrears for my pay rather than 1.
Given they terminated the contract purely for thier benefit can they still hold me to the other clauses within the contract? TBH I want to ditch them and find another agency to deal with the end client for me but I have a clause which means I cannot return to the clent with another agency for 6 months after the contract ends.
cheers
Given they terminated the contract purely for thier benefit can they still hold me to the other clauses within the contract? TBH I want to ditch them and find another agency to deal with the end client for me but I have a clause which means I cannot return to the clent with another agency for 6 months after the contract ends.
cheers
well I would have thought if your contract has been terminated they would not be able to hold you to terms in the now terminated contract. how ever the important contract would be the one between the agency and their client ( the guys you do the work for) that will have a clause that entitles the agency to charge a fee (x number of weeks billings) if they employ a worker previously supplied by them (usually x number of weeks from last date of assignment).
This would also apply if you went to work for another company but at the same client
This would also apply if you went to work for another company but at the same client
scrwright said:
I have a clause which means I cannot return to the client with another agency for 6 months after the contract ends.
cheers
This clause from the original contract would still apply presumably, but the 6 month clock would start ticking from when they terminated the original contract. Presume the new contract contains this clause also though?cheers
So your a contractor in IT.
I hear so much on here about this going in as a contractor working for a company on here - in IT and things like that.
Would that contract actually stop you from going contracting over the next 6 months with a client company that you work for now - if (and its a big if given the clause in the contract) you go in as a direct contractor to the client - no agencies involved.
What I mean is - is it working for the client for another competitor agency that's barred - or are you barred from working from the client for 6 months full stop - even if your employed as an employee by the client - or you are a contractor to them directly - no middleman or agency involved.
I know this sort of clause is common in contracts - but for what its worth - I hate these sort of clauses in contracts stopping people from working for certain companies for a period after they LEAVE and FINISH the contract
- and yes I realise why these clauses are in place - still don't have to like them .
Hope you get sorted
I hear so much on here about this going in as a contractor working for a company on here - in IT and things like that.
Would that contract actually stop you from going contracting over the next 6 months with a client company that you work for now - if (and its a big if given the clause in the contract) you go in as a direct contractor to the client - no agencies involved.
What I mean is - is it working for the client for another competitor agency that's barred - or are you barred from working from the client for 6 months full stop - even if your employed as an employee by the client - or you are a contractor to them directly - no middleman or agency involved.
I know this sort of clause is common in contracts - but for what its worth - I hate these sort of clauses in contracts stopping people from working for certain companies for a period after they LEAVE and FINISH the contract
- and yes I realise why these clauses are in place - still don't have to like them .Hope you get sorted
Sir Fergie said:
I know this sort of clause is common in contracts - but for what its worth - I hate these sort of clauses in contracts stopping people from working for certain companies for a period after they LEAVE and FINISH the contract - and yes I realise why these clauses are in place - still don't have to like them .
Hope you get sorted
A few assumptions here but there may be a situation where you could form another Ltd company or go via umbrella for a period of time to achieve the aim of working with the same end client. - and yes I realise why these clauses are in place - still don't have to like them .Hope you get sorted
scrwright said:
new contract has the go back clause in it. Seems the agency has lost the ability to factor the invoices to the end client so are pushing the wait down to the contractors. Will see how it pans out monday as I rejected the new contract.
As far as I'm concerned one of the reasons an agency takes such a large cut, is because they pay you, before they get paid by the client. If that isn't happening anymore and they aren't having to pay for factoring, I would assume they would be increasing your hourly\daily rate to reflect their reduced service to you and costs to them.edc said:
Sir Fergie said:
I know this sort of clause is common in contracts - but for what its worth - I hate these sort of clauses in contracts stopping people from working for certain companies for a period after they LEAVE and FINISH the contract - and yes I realise why these clauses are in place - still don't have to like them .
Hope you get sorted
A few assumptions here but there may be a situation where you could form another Ltd company or go via umbrella for a period of time to achieve the aim of working with the same end client. - and yes I realise why these clauses are in place - still don't have to like them .Hope you get sorted
Bluequay said:
scrwright said:
new contract has the go back clause in it. Seems the agency has lost the ability to factor the invoices to the end client so are pushing the wait down to the contractors. Will see how it pans out monday as I rejected the new contract.
As far as I'm concerned one of the reasons an agency takes such a large cut, is because they pay you, before they get paid by the client. If that isn't happening anymore and they aren't having to pay for factoring, I would assume they would be increasing your hourly\daily rate to reflect their reduced service to you and costs to them.1) The client is clearly not creditworthy if the factoring company will not factor them
2) The agency has clearly not got much money if the only way they can deal with this company is by getting the contractors to foot the credit period
3) It would strongly suggest that if the uncreditworthy client does not pay their bill, then the agency will not be able to pay the contractors.
blindswelledrat said:
Bluequay said:
scrwright said:
new contract has the go back clause in it. Seems the agency has lost the ability to factor the invoices to the end client so are pushing the wait down to the contractors. Will see how it pans out monday as I rejected the new contract.
As far as I'm concerned one of the reasons an agency takes such a large cut, is because they pay you, before they get paid by the client. If that isn't happening anymore and they aren't having to pay for factoring, I would assume they would be increasing your hourly\daily rate to reflect their reduced service to you and costs to them.1) The client is clearly not creditworthy if the factoring company will not factor them
2) The agency has clearly not got much money if the only way they can deal with this company is by getting the contractors to foot the credit period
3) It would strongly suggest that if the uncreditworthy client does not pay their bill, then the agency will not be able to pay the contractors.
Bluequay said:
I agree I wouldn't do it either, just pointing out that the agency will be saving money and performing a reduced service, and not offering a bean in compensation.
Indeed, but when you boil those costs down you're only looking at a 20p per hour difference, to pluck a figure, hence when the risk is so high, arguing over an amount that small is going not worth the effort, imo.blindswelledrat said:
It's not worth the risk.
1) The client is clearly not creditworthy if the factoring company will not factor them
2) The agency has clearly not got much money if the only way they can deal with this company is by getting the contractors to foot the credit period
3) It would strongly suggest that if the uncreditworthy client does not pay their bill, then the agency will not be able to pay the contractors.
Client is v big & has money but poor at paying by all accounts, wonder if the agencies factoring company has had enough bill chasing? The agency have admitted by email they are small and cannot afford to pay the contractors if they cannot factor invoices, which worries me a bit.1) The client is clearly not creditworthy if the factoring company will not factor them
2) The agency has clearly not got much money if the only way they can deal with this company is by getting the contractors to foot the credit period
3) It would strongly suggest that if the uncreditworthy client does not pay their bill, then the agency will not be able to pay the contractors.
Suppose my question is would they come after me for thier 6 months loss of income (stipulated in terminated contract) if I jump to another agency?
scrwright said:
Suppose my question is would they come after me for thier 6 months loss of income (stipulated in terminated contract) if I jump to another agency?
I would say almost certainly not although I am not a lawyer (but do own a recruitment company)My rationale is
1)If they are terminating the contract then I would be greatly surprised if you must still be bound by its terms
2)Courts absolutely hate contracts that restrict a workers ability to work using their own skills. A great many of them would be dismissed as illegal before the first sentence is uttered
3)Why bother spending the money when you probably couldn't/wouldn't pay anyway? (this is assuming you aren't on £10k per week and utterly loaded)
4)Assuming you have other contractors with the client then it just isn't worth rocking the boat .
The only thing that would ever make me pursue you in that scenario is if you did it in an offensive way which irritated me enough to do it out of spite.
Right, issue now sorted & I have accepted going on 2 weeks in arrears weekly payment. The reason they are giving is the end client is going self billing and the agencies bank did the factoring did not accept the self billing invoice as acceptable. Who knows how true it is, will find out in 2 weeks! LOL
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