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Agency Contract Dispute

Contractor Question

I have a contract with a major organisation who has decided to review its contract process and as a result may decide not to use specific agencies going forward, one of which is the agency I am through. The client is threatening to give notice to the agent should they not agree to follow the new process.

The question I have is, as my contract has a restricted period clause, how am I affected if it is the agency that is in effect sacked? I want to stay with the client going forward.

Answer

Unfortunately without seeing your contract a definitive answer cannot be given. However, you may be protected by The Conduct of Employment Agencies and Employment Businesses Regulations 2003.

Limited company contractors can choose to opt-out of all these regulations. One suggestion, as a starting point, look at your agreement and check the agreement to see if you have opted out or not.

The Act limits the ability of an agency to restrict a contractor making direct arrangements for future services with the end-client. Therefore any restrictive covenants on working for an end client would not apply.

If you have opted out of the Act unfortunately the restriction can be enforced against you. In this case the courts will need assess the restrictions on the basis of whether they are reasonable and protect a genuine economic interest.

This answer was provided by Vantage Legal Protect.

By Contractor Doctor

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