Contract law questi...
 

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[Closed] Contract law question (consultancy contract)

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Ok so this is a bit delicate but I can't imagine how they can get away with this.

I'm a 'freelance' IT consultant aka contractor. I've worked for a large consultancy before on a contract basis. Said large company is negotiating with a client for work which may involve me again who have strict NDA requirements and specify that any consultants they use must ONLY ever do consultancy work through the large company in the future.

Wtf? Surely that can't be enforceable?


 
Posted : 04/05/2011 9:53 am
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No chance that's enforceable, at least after your contract with the client ends. I guess there could be ramifications in future if client A developed some new technology and you then moved to client B and they coincidentally developed something similar but that would be up to patent lawyers and such to dispute and for client B to prove a clean room development environment etc.


 
Posted : 04/05/2011 10:51 am
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the large company must then give you all the work you want? or pay compensation for non-working time?

in no way an expert but I can't see how it would be enforceable (Bosman type issue)

just make sure any contract [b]you[/b] sign does not restrict future employment


 
Posted : 04/05/2011 10:53 am
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Which is all reasonable and I think I've seen lots of competitors clauses before (and even those are on shaky ground often iirc). I don't want to take the piss, but otoh they shouldn't either.


 
Posted : 04/05/2011 10:54 am
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Client already has an 'agreement' with large company which says anyone put forward must only consult through large company in future. The fact I am external to the large company means that there's another layer of contracts... And I'd probably have to sign something explicit between me and the client the nature of which would be a bit ludicrous I feel.


 
Posted : 04/05/2011 10:56 am
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Surely all you have to worry about is your contract with the consultancy, and they won't pass on any agreement that you will only ever work for them in the future.

What they agree with the client is their problem.


 
Posted : 04/05/2011 10:58 am
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Presumably you mean 'consult with them' in the future? If this is the case, it's not unusual is it. Companies often have pet agencies they deal with on an exclusive basis.

If you mean all your future work must be only with them and no one else, that is absolutely non enforceable. There's an EU thingy dealing with freedom to work. I can't recall the details ATM but do a search for it and you'll find employers can't legally stop us seeking our fortune elsewhere.


 
Posted : 04/05/2011 11:13 am
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Presumably you mean 'consult with them' in the future?

Er yeah.. that would make more sense.. the guy who emailed me was unclear then I guess. Have emailed back to check.


 
Posted : 04/05/2011 12:52 pm