VIC Contracting - Changing Agency

[RickJ]

Hi. I am a contractor currently working under a contract (daily rate) for an agency. This contract is under my registered business name. I have been working for the same client site for the last 5 months. I have recently found out agency's commission is 40%. This is well above the normal commission other agencies charge. Also working during the weekend (Saturday and Sunday) and public holidays doesn't pay any overtime.

My contract says I can not work directly with the current client for 12 months. What would happen under employment law if change my agency while continue working for the same client?

Thank you

 

[Michael T]

Hi Rickj,
What kind of contract is it specifically? Are you an independent contractor, or is it an employment contract?

 

[RickJ]

Hi Michael
I am an independent contractor.

Thank you

 

[Michael T]

You should look at what your contractor agreement says about what happens if you leave the agency.

If you work for the client within the 12 months, then the agency might bring a legal action against you for breach of contract (assuming that the 12 month restriction is in your contract from what you mentioned above). However, a restraint of trade is on its face unenforceable, so it would need to go to court for a judge to decide what period of restraint, if any, would be reasonable in the circumstances.

You could also contract Fair Work to bounce ideas - see Help for independent contractors - Fair Work Ombudsman Also have a look at the Australian Business Booklet "Independent Contractors: preventing and managing disputes".

 

[RickJ]

Thank you very much Michael