New employer same job
Discussion
There's a potentially complicated situation arising for some techies I know.
They are employed by firm A, a computer services outfit mainly providing web and cloud services.
A client of firm A, let's say firm B, has a requirement for a development team with a niche skill. Firm A has also provided this for the last 12 months and the requirement is expected to last a few more years. This team, is working near enough full time for this client.
There is a suggestion that firm A might be in the sherbet dip, might drop the development project due to being taken over, or to downsize to their core business, might even go under. Either way the development team would be out of work, two were taken on specifically for this client, and firm B would have a problem.
Supposing the development team formed their own company and arranged with B to carry on doing what they are doing once firm A was no longer involved?
If firm A was no longer selling that skill set would a non compete clause (if any) be relevant? Would working from their own premises on their own equipment help avoid IR35? Would firm A have a right to insist the project was their ball and nobody else could play with it?
They are employed by firm A, a computer services outfit mainly providing web and cloud services.
A client of firm A, let's say firm B, has a requirement for a development team with a niche skill. Firm A has also provided this for the last 12 months and the requirement is expected to last a few more years. This team, is working near enough full time for this client.
There is a suggestion that firm A might be in the sherbet dip, might drop the development project due to being taken over, or to downsize to their core business, might even go under. Either way the development team would be out of work, two were taken on specifically for this client, and firm B would have a problem.
Supposing the development team formed their own company and arranged with B to carry on doing what they are doing once firm A was no longer involved?
If firm A was no longer selling that skill set would a non compete clause (if any) be relevant? Would working from their own premises on their own equipment help avoid IR35? Would firm A have a right to insist the project was their ball and nobody else could play with it?
Austin Prefect said:
There's a potentially complicated situation arising for some techies I know.
They are employed by firm A, a computer services outfit mainly providing web and cloud services.
A client of firm A, let's say firm B, has a requirement for a development team with a niche skill. Firm A has also provided this for the last 12 months and the requirement is expected to last a few more years. This team, is working near enough full time for this client.
There is a suggestion that firm A might be in the sherbet dip, might drop the development project due to being taken over, or to downsize to their core business, might even go under. Either way the development team would be out of work, two were taken on specifically for this client, and firm B would have a problem.
Supposing the development team formed their own company and arranged with B to carry on doing what they are doing once firm A was no longer involved?
If firm A was no longer selling that skill set would a non compete clause (if any) be relevant? Would working from their own premises on their own equipment help avoid IR35? Would firm A have a right to insist the project was their ball and nobody else could play with it?
If they're still employed / getting paid by Firm A then it depends on what their contract says.They are employed by firm A, a computer services outfit mainly providing web and cloud services.
A client of firm A, let's say firm B, has a requirement for a development team with a niche skill. Firm A has also provided this for the last 12 months and the requirement is expected to last a few more years. This team, is working near enough full time for this client.
There is a suggestion that firm A might be in the sherbet dip, might drop the development project due to being taken over, or to downsize to their core business, might even go under. Either way the development team would be out of work, two were taken on specifically for this client, and firm B would have a problem.
Supposing the development team formed their own company and arranged with B to carry on doing what they are doing once firm A was no longer involved?
If firm A was no longer selling that skill set would a non compete clause (if any) be relevant? Would working from their own premises on their own equipment help avoid IR35? Would firm A have a right to insist the project was their ball and nobody else could play with it?
If they get made redundant then any NCC, whilst still valid, would be harder to enforce. It also needs to protect a legitimate interest; if Firm A is no longer doing that work they can't really prevent others from doing that work.
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