Awkward contract situation - how to deal with it?
Discussion
I'm a contractor monkey. I work for Company 1 through Agency A. The contract was for an initial 6 months and was specific as maternity cover. I am now coming to the end of the term and Company 1 want to keep me on, and I am keen to stay. However, there is a hitch.
In order to keep me on, Company 1 needs to now raise POs against specific projects (rather than just having me in as maternity cover) - this is not a problem - however it means I need to move onto a Managed Service type contract. Agency A do not offer this facility at Company 1. Company 1 introduces me to Agency B who do, and already have several contractors working onsite at Company 1 under this Managed Service.
Company 1 and Agency B are being very accommodating and are being transperent throughout in offering me an identical rate to Agency A, so all is well so far.
My problem is... Agency A are now asking me if Company 1 is talking about offering me renewal as they will have to draw up a new contract etc. And in my contract with them there is an exclusivity clause:
s off their #1 Client by exercising this clause... however there are no guarantees. I should add I have had a good relationship with Agency A, no problems whatsoever.
How do I raise this situation with Agency A? Tell them and hope they don't exercise the clause? Or keep schtum and say I've not been offered renewal and thank them for the last 6 months etc. I'm not sure how to deal with it. Thoughts?
In order to keep me on, Company 1 needs to now raise POs against specific projects (rather than just having me in as maternity cover) - this is not a problem - however it means I need to move onto a Managed Service type contract. Agency A do not offer this facility at Company 1. Company 1 introduces me to Agency B who do, and already have several contractors working onsite at Company 1 under this Managed Service.
Company 1 and Agency B are being very accommodating and are being transperent throughout in offering me an identical rate to Agency A, so all is well so far.
My problem is... Agency A are now asking me if Company 1 is talking about offering me renewal as they will have to draw up a new contract etc. And in my contract with them there is an exclusivity clause:
Clause said:
The supplier (me) shall not, during the Term or within a period of 12 months from the expiry or termination of this Agreement alone or jointly with any other person directly or indirectly supply services the same as or similar to the Services to the Client, any member of the Client's group of companies in the UK, or any other person or company who the Supplier or the Consultant had material contact with in the course of the supply of Services, apart from through Agency A under the terms of an agreement similar to this Agreement
How do I deal with this? Agency A simply do not offer a Managed Service so I cannot continue at Company 1 through them. My gut feel is Agency A have a good relationship with Company 1 (a very large employer) and would not want to ps off their #1 Client by exercising this clause... however there are no guarantees. I should add I have had a good relationship with Agency A, no problems whatsoever. How do I raise this situation with Agency A? Tell them and hope they don't exercise the clause? Or keep schtum and say I've not been offered renewal and thank them for the last 6 months etc. I'm not sure how to deal with it. Thoughts?
Are you a contractor with your own Ltd company, or are you a temp?
If the former, then I can't see why you would need a seperate sort of contract. Every contract I've had states that my company will provide services to the client for a period of x months. How the client bills you internally has no bearing on the contact and vice versa.
If you have an exclusivity clause than I'd bet my bottom dollar that the client does too. I'd be suprised if they try to circumvent the agent. Agents will persue companies for breach of this clause.
Agent A will only release you to Agent B for a price. Will Agent B pay this?
What is difficult for us contractors to accept is that the agency has the contract with the client, and sub-contracts the work out to us. So they retain the option to replace us with another contractor (subject to contract). They also retain the right to cease supplying services to the client.
If the former, then I can't see why you would need a seperate sort of contract. Every contract I've had states that my company will provide services to the client for a period of x months. How the client bills you internally has no bearing on the contact and vice versa.
If you have an exclusivity clause than I'd bet my bottom dollar that the client does too. I'd be suprised if they try to circumvent the agent. Agents will persue companies for breach of this clause.
Agent A will only release you to Agent B for a price. Will Agent B pay this?
What is difficult for us contractors to accept is that the agency has the contract with the client, and sub-contracts the work out to us. So they retain the option to replace us with another contractor (subject to contract). They also retain the right to cease supplying services to the client.
The former. The client does not take on contractors directly, evidently they use a few preferred agencies. Therefore there is a middle man between the contractor and the client. In my case, I'm with Agency A who do not provide a Managed Service within the client - ie an admin bod and manager bod, and a line of contact for resource management.
Agency B does offer this service. The client wants me to move agencies.
Agency B does offer this service. The client wants me to move agencies.
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff