Contract clause

[lisajayneash]

I am signed to a contract but have found out they are taking 25% of my earnings not what the client thought. The contract says I can give 28 days notice which I have done however there is a clause that says I can't work for the client for 1 year after my contract finishes which is March 2013. Can I leave and come back to work for the client under a different Limited Company? The contact is between my current Limited Company and the agency.

[woofgang]

what does the contract say? I suspect that it says you as an individual as this stops folk stealing contacts and info and using it in a new company.

[lisajayneash]

No the contract is between my limited company and the agency it doesn't mention my name anywhere.

[woofgang]

then how can you give the notice?

[buildersmate]

The answer to that, Woofgang, is because she will be a Director of her own limited company.

This is a grey area and one that lawyers would love to make money from - arguing the two sides.

If you know enough people such that you are intending to work through another limited company that you are not a director of (and they just take a small handling margin) then it is worth a punt.

Personally I wouldn't set-up another new limited company of which I was a director to attempt this stunt (even if the economics/admin of setting-up the new company were small enough to justify it) - you would be too close personally to both organisations for comfort. You might get away with it because the agency might decide to do nothing. But then again you may find a legal letter on your doorstep.

[lisajayneash]

Okay thanks buildersmate - I have a meeting tomorrow as their contract with the Client has now come into question! Especially as at the beginning the agency got my rate down by telling me that the Client was undecided on me and another service provider because the other service providers rate was lower. Interesting now everything has come to light!

[buildersmate]

At the end of the day, keep the end client on your side. They know your capabilities and are the paymaster of everybody here.
There are good agencies and poor ones - it is for the client to work out what animal it is working with here.
If the end client values and wants your services, there isn't too much the agency can do about it.