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Jenny, Solicitor
Category: Law
Satisfied Customers: 6430
Experience:  Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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A subcontractor (their own limited company) wishes to switch

Customer Question

A subcontractor (their own limited company) wishes to switch to Engage Technical Solutions (my company) to work as an Engage Associate. The have a Fidelity clause in their current contract which is:
The Contractor agrees and undertakes that except as the Agency may in writing permit, for a period of six months following the termination of this Agreement, it will not directly or indirectly undertake work of a similar nature to the Services for the Client which can reasonably be viewed as arising as a result of the Assignment, whether through itself, its agents or servants.Their current Agency is Red Rock and the client who the Associate is working for is Serco (but they have been deployed by Serco into an MoD site)They wish to work through Engage on a new project which has no relation to their current project and on a contract which would be through Engage direct to the MoD. Does Red Rock have any grounds for enforcing the fidelity clause (which they are threatening)?
Submitted: 2 years ago.
Category: Law
Expert:  Jenny replied 2 years ago.
Hello so just to be clear, you are acting as an agency in so far as this contractor is concerned in respect of the contract? Does the contract contain a definition of the term 'client'?
Customer: replied 2 years ago.
No it doesn't.
Expert:  Jenny replied 2 years ago.
If there is no definition then client would take it's normal dictionary definition and I do not think that they have grounds upon which this can be enforced. The only way that they could do so would be in breach of contract and it does not appear the person is restricted from going to work for the end user on a different contract. Is there anything further you would like to know?