Dump My Agency
A reader dhudsonuk asked us if ‘I can dump my agency’ and take a direct contract.
Dr. McLaughlin has replied.
My hubby‘s contract has just expired with Agency X. So, the client has approached him to work direct for them cutting out the agency.
With all the hoo-haa going on at the moment with regard to what regulation is legal and what agencies can or cannot do, can anyone actually tell me what the ramifications are for my hubby to accept this contract with the client and to say bye bye to the agency?
My hubby and I run our own LTD. One works via an agency and one works direct for a couple of different clients.
He is asking if “I can dump my agency”.
Any assistance, therefore, is appreciated.
Dr. McLaughlin’s IT Surgery
Are you aware of the new Agency Regulations which came into effect for limited companies a few years ago?
It means that you can leave an agency and go direct at the end of a contract. However, you must pay a fee to the agency, which I think is the equivalent of 8 weeks’ agency fees.
There is a provision for limited company contractors to opt out of this.
Providing your husband hasn’t signed anything from the agency saying that he has opted out then he can go direct. However, there is that fee.
Take the Contract
What I would be tempted to do is to just go along with the client and take the contract.
After all, if the agency finds out all they will be able to demand is the fee . So why donate it to them in the first place?
I also think that it is the client who has to pay the fee. So there’s no problem for you if that’s the case. The client doesn’t seem the type to be intimidated by agencies.
So, the answer to ‘can I dump my agency’ is go for it.