Dump the Agency
My client wants me to dump the agency to get a renewal.
I‘m 6 weeks into a 3-month contract with my client which I got through an agency.
However, the company have now approached me with a year-long contract – but they want me to go direct to them and not through the agency. They want me to dump the agency and go direct to them.
Unfortunately, after I had been for the interview and signed the contract, the agency sent me an opt-out-of-AWR form to fill in and I signed it.
Split Agency Commission wih Client
The client are prepared to split the agency‘s commission with me which I was surprised to find was 30% of what the company pay for me.
I‘m tempted but I don‘t want to find myself in legal trouble with the agency.
The client company say that it is the only time they have used that agency and don‘t have anyone else from them at the company and don‘t intend to use them in the future.
What should I do, Dr. McLaughlin?
Dr McLaughlin‘s IT Contractor Surgery
Take it, you fool.
What‘s your problem?
I make that a 21.4% rise in pay for you.
That‘s worth taking the risk that the agency might find out.
It‘s highly unlikely that the agency will ever find out anyway as they have never had anyone there before and will never have anyone there again.
So, who‘ll tell them?
You’ve got the opportunity to dump the agency and go direct for more money.
Outside IR35 Operating Limited Company
If you are still worried it might be worth asking the company what sort of contract they have with the agency.
They must be OK or they wouldn‘t have approached you.
You didn‘t say whether you are in an Umbrella or not but you are now taking yourself outside of the Agency Workers regulations and almost certainly outside IR35.
That means that you can now operate as a limited company with all the savings that can make you.
Illegally Opted Out of AWR
I save the last piece of good news to the last – and it is a clincher.
Even though you opted out of AWR, it was not legal.
You didn‘t opt-out till after you had been to the interview and after you had got the contract and after you had signed it.
They have to get you to opt out before they introduce you to the client.
So, the opt-out you signed it is not worth the paper it is written on.
So, you are now free to go and take that new contract from the client as a direct freelancer.
If yo are having scruples about it, remember two things. Firstly, what you are going to do is absolutely legal.
Secondly, and the clincher I would say, the agency tried to trick you. What they did was illegal and they must have known that.
They hoped you wouldn’t have known that.
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