Contractor moving to another agency without consent

[Techj]

Hello all, (thanks in advance)



Ive been searching various sites on the web but had no joy regarding a legal issue we are about to embark on.



We have 2 contractors currently working through us for a large PLC. They have been working through us for 6 months. However one of the contractors stated early on in the process he was not happy because we are not on the PSL (preffered supplier list) and neither are the company who we operate through. It actually goes via a third company who are on the list. This is becuase we can supply the specialist contractors easily and the other company we go through has an existing relationship the company are happy with and trust. The third company simply processes the payments along with thousands of others due to them being on the PSL and accounting system. The client is quite happy about this arangement but for reasons soon to be apparent he is not.



There renewals have come up and he has told us firmly that he will be going to another agency on the PSL directly to



A)save the company money! and



B)the company that we use who are on the PSL, he is about to embark on some security work which concerns them and would not be correct for impartiality reasons.



We have also learnt that these reasons are mainly manufactured to persuade the client to take the 2 contracts and all future work to someone he is friends with who runs an agency that is not on the list. Bit complicated but I hope it makes sense!



As a result, we have negotiated with another company that is on the list to process the payments, managing to bring the client fees down and eliminate any impartiality with his future security work that existed.

We have removed all concerns and the client is considering the situation as we speak.



However, this contractor is doing everything in his powers to take the work to someone else by persuading the client that its in there best interest.

Clause 8A of his contract states that his limited company and him are not allowed to be introduced to another agency or associate of the client without our authorisation for 6 months after the contract terminates.



Where do we stand with this, are we as a recruitment agency allowed to persue the contractor and his limited company for the loss of the income from these 2 contracts or is it to bad?







Contract text



8. A. During the Agreement Period and for a period of six months thereafter, the Subcontractor agrees and undertakes that neither the:



Subcontractor nor any of its servants, agents or employees (including, without limitation, any Consultant provided under this

Agreement) shall enter or seek to enter into any agreement or arrangement with the Client or any Associated Person or solicit or

canvass the Client or any Associated Person or the business of the Client or any Associated Person (as defined in clause 8B below), for

the supply (whether by the Subcontractor or such Consultant) of computer services, computer related services, services of computer

related personnel or computer products, unless such agreement or arrangement is made through the Company. The Subcontractor

agrees that the restrictions contained in this Clause are reasonable and necessary for the protection of the Company and the Company’s

legitimate business interest in protecting its trade and business connection with the Company’s Client.

B. For the purposes of Clause 8A, “Associated Person” means any person or company to whom the Subcontractor and/or the Consultant:



has gained introduction by way of this Agreement or the Services provided hereunder, including, without limitation:

(i) any parent, holding, subsidiary or associated company of the Client; or

(ii) any client, customer, prospect, agent, subcontractor or supplier of the Client with whom the Subcontractor and/or the Consultant

has had direct contact whilst performing the Services;

which introduction can reasonably be attributed to the existence of this Agreement and/or the Consultant’s assignment with the Client

and/or the Services provided pursuant to this Agreement. The foregoing covenant undertaking may not be varied without the prior

written consent of a duly authorised representative of the Compa