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Taking a role in a company im currently consulting in under another company

  • 26-02-2014 3:26pm
    #1
    fret_wimp2
    Registered Users, Registered Users 2 Posts: 1,905 ✭✭✭


    I work for company A. Through company A I have been consulting in company for about 5 months. Its been informally suggested by a few management folks that I should work for company B full time, cut out the middle man so to speak.

    Assuming it all worked out its a much better position for me career wise, financially and lifestyle wise.

    My question is:

    -Are there any legal barriers I would hit in doing this? There is nothing in my contract to prevent it, and AFAIK there are no laws to prevent it, but I could be wrong?


Comments

  • #2
    blindsider
    Registered Users, Registered Users 2 Posts: 2,037 ✭✭✭blindsider


    There may be something in

    a) your contract about moving

    b) something in the agreement (contract) between co's. A & B re hiring consultants. TBH I would have that clause in there if I was A.

    If it's not there, I suggest that you and B discuss it openly with A - it's the professional thing to do. Then, let them work it out between them.

    It's no harm to remember that if it wasn't for A, B wouldn't have found you. B didn't have to hire an agency etc to find you. They may be due some compensation or gesture of goodwill - it would allow for a Win-Win.


  • #3
    Ray Palmer
    Registered Users, Registered Users 2 Posts: 8,513 ✭✭✭Ray Palmer


    Your contract will prevent this for sure. Company A effectively own you working there until at least a year after you stop working there.

    If you want to do this Company A will either simply say no or ask for compensation/finders fee.

    I am currently stuck in a place that get €50 for everyday I work. They made 12k off me last year. They refused to reduce this and if I want to be hired directly they said it would cost 20k to the company to hire me.

    Are you working for a recruitment agency on contract by chance?


  • #4
    Bandana boy
    Registered Users, Registered Users 2 Posts: 4,337 ✭✭✭Bandana boy


    Legally with Freedom of movement in the EU ,your company can not stop you joining this new company.
    There could though be penalties to company B from company A inherit in your contract.
    I would leave them to work out the impact of this and if Company B puts a contract you are happy with in front of you ,sign it and hand in your notice.


  • #5
    Ray Palmer
    Registered Users, Registered Users 2 Posts: 8,513 ✭✭✭Ray Palmer


    Bandana boy wrote: »
    Legally with Freedom of movement in the EU ,your company can not stop you joining this new company.
    There could though be penalties to company B from company A inherit in your contract.
    I would leave them to work out the impact of this and if Company B puts a contract you are happy with in front of you ,sign it and hand in your notice.
    They can't stop you but the contract can make it so you have to pay them. Your contract can certainly put restriction on your movement.

    It would be interesting to see if you could legally challenge such contracts under the EU regulations. Considering lawyers have contracts prohibiting opening offices close to where they last worked I would have thought such laws would have been challenged by now.

    Either way it is not much help to the OP as he isn't going to take them to court and go through the whole thing for this move.


  • #6
    fret_wimp2
    Registered Users, Registered Users 2 Posts: 1,905 ✭✭✭fret_wimp2


    My contract has no such clause in it. I cant say what is in the contract between Company A & Company B.

    Nothing has happened anyway so it may all be speculation, just wanted to be prepared. If anything changes il update the thread.

    thanks


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  • #7
    chris85
    Registered Users, Registered Users 2 Posts: 4,502 ✭✭✭chris85


    Companies might have a contract between them which would not allow to hire other companies employees for certain time period after finishing!


  • #8
    Bandana boy
    Registered Users, Registered Users 2 Posts: 4,337 ✭✭✭Bandana boy


    Ray Palmer wrote: »
    They can't stop you but the contract can make it so you have to pay them. Your contract can certainly put restriction on your movement.

    It would be interesting to see if you could legally challenge such contracts under the EU regulations. Considering lawyers have contracts prohibiting opening offices close to where they last worked I would have thought such laws would have been challenged by now.

    Either way it is not much help to the OP as he isn't going to take them to court and go through the whole thing for this move.

    I have never seen or heard this in the contract with the employee as it is pretty much unenforceableand I "think" illegal.

    I imagine the likes of the Bosman ruling would preclude any financial penalties for leaving once you have met the notice terms of your contract.

    As I said earlier if company B offers a contract you are happy with take it and let company A and Company B examine case law for who can do what to who.


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