Moving Contracting Companies

Hi there,
I am currently a full time employee of a contracting company into a multinational company. I have found a better rate from another contracting company and still will maintain my exact same role with the multinational.

I thought I had my homework done and was all set to hand my notice in to my current employer, and sign a contract with the other company when I came across this in the Company Handbook of my current employer.

Employees will not during 12 months immediately following termination of Employment with (current employer) solicit custom for, or supply the same type of product or services if in doing so you or your employer or principal would be competing with the company or associated companies that customers business."

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Does this rule out moving to an alternative contracting company while remaining in the same role within the multinational, or what exactly are my obligations here?
Any advice much appreciated

I'm afraid that it does, as far as I know. I know of someone who did something similar and was taken to the High Court over it, resulting in huge expense, probably mainly to 'set an example'. The only possible get-out might be an argument that "12 months" is too long a period and is anti-competitive - 6 months might be more reasonable. However, it could well be expensive proving it. In the above case, there was no period specified, and it still cost an awful, awful lot of money and stress.

I think perhaps your best options might be to either push your current agency for a higher rate, or else to just bite the bullet and move job completely.

Hmm.. something to think about so. Thanks for that feedback

You need to remember that your contract is with the agency no the client company, there is no obligation on the client to switch agency just because you do, he might decide to stay with the same agency and take on someone else they are proposing, they might offer him a better rate if he does, he might decide that he does not want to be caught in the middle of legal proceedings between two agencies and simply goes with a third party...

Regardless of the legal niceties, the general rule is to ride out on the horse you rode in on, very often doing what you are proposing ends in tears, because the client gets tired of the crap and goes else where. Unless the rate difference is dramatic and you don't mind loosing it, I'd think twice about it....

Thanks Jim. I've already checked it out with the client company. They are ok with me moving as long as I stay with them. The rates they pay are standard, but the cut the contracting company takes is varying by 12K between the two. My own crowd have had a pay freeze in place since I started with them (over 4 yrs ago) and have given every indication that it will remain for the forseeable future, despite outside appearances of the company expanding in the past 12 months.

Not going to rush into anything but the difference between companies, and increase to my bottom line makes it worthwhile doing as much homework as I can.

Why do you need to work for a contracting company? Can you not just work directly for the client?

In a previous job, I just left my contracting company and continued working for the client. I don't think the contracting company ever knew.

Another shortcut that I experienced in Australia (to get around working visa rules) was to get another contract with the client listing different job title and duties, even though in actual fact I was still doing the same job.

At the end of the day, screw the contracting company, they are squeezing you and profiting massively off your work. If your client is happy to keep you, jump.

Moved from Askaboutbusiness to Work, Employment which is where this type of question is dealt with on AAM.