New agency regs New agency regs
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Thread: New agency regs

  1. #1

    mailmannz

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    Default New agency regs

    So has anyone had to deal with dodgy agents through the new regs yet (like having money illegally with held from you).

    Oak, it would be interesting to hear from an agents point of view the impact the new regs have had on them when contractors decide to go direct to the client instead of through the agent. Have you had any dodgy contractors do this yet?

    Regards

    Mailman

  2. #2

    oaksoft

    Guest

    Default

    Actually I try to avoid working with contractors at all and in fact have only placed a few. The reason for that is quite simple.

    1)Many contractors are more hassle than they are worth (and having been a particularly stroppy one in my time I am well qualified to know ).

    2)The risk of invoice factoring is too large for the commission charged. To place just 10 contractors, you'd need to cover around £200k before the client paid you some 3 months later.

    3)Clients don't seem too interested in allowing fixed price placements (but I am working on this angle). This is pretty much the only way I'd want to work with contractors.

    The agency regs are not a problem generally speaking and I agree with some of the clauses like reduced handcuffs although why people claiming to be professional businessmen would feel they need "protection" of this nature when negotiation is the only option for the vast majority of other businesses is frankly beyond me but if your pride can handle it then fair enough.

    If a contractor or client tried to bypass me in defiance of the contract then I'd start sending them both invoices for the charges associated with that plus interest. Those invoices, if not paid, would simply increase and I'd hand the whole lot over to a debt collector in both cases.

    Because I only try to deal with employees, this would usually not be a problem for me and if I use contractors I'd want to charge a fixed number of hours and therefore this also wouldn't be a problem.

    Traditional agencies and contractors have made an utter mess of these regs.

    Many contractors believe they smell blood and a chance to get something for nothing but naturally end up with a raw deal for their efforts through either the threat of reduced rates OR terrible contracts (seems to be plenty of evidence of both happening). Of course, the easy way out of the confusion is to sign the opt out and stop trying to beat the sharks at their own game.
    Most agencies can't think above the bottom line and so don't even consider 2 things which would make the Regs obsolete without the need for an opt out:-
    1)Do fixed price placements.
    2)Ensure all contracts specifically state that thge client has no D+C of any nature whatsoever over the contractors.

    Contractors and agencies who together fall into the above categories IMO deserve all the hassle and uncertainty that they get because they are both working against each other at the same time.

    Interesting aside - REC who are an agency body, send their "consultants" out to agencies to "help them". According to a friend of mine who runs an agency, the guy they sent out apparently offered the following advice:-
    "It's all about Sales. Concentrate on commission and making the placement at all costs".
    ...and that pile of worrying nonsense came from the organisation which regulates the industry .

  3. #3

    mailmannz

    Guest

    Default

    Thanks Oak, btw...what does D+C mean?

    Mailman

  4. #4

    Debbie Reinvented

    Guest

    Default

    probably Direction and Control .....

    I'm sure the guys here will think of plenty of other explanations

  5. #5

    oaksoft

    Guest

    Default

    D+C does indeed mean Direction and Control.

    By the way, had traditional recruitment agencies not been such greedy, unprofessional and unscrupulous cowboys, there would have been no need for these regs in the first place. I'd also have a much easier job, when I talked to clients, if they didn't just assume I was just another one of the pack :rolleyes but such is life .

  6. #6

    clairenw

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    Default

    I just had a call from an agency with details of a potential contract. However, they are pretty much insisting (though they say they're not) that I opt out of these regs. They also require me to have Professional Indemnity Insurance, even though I'm a graphic designer and only "publish" sensitive client material if asked to do so by the client. The agency are offering their own insurance!

    Should I just walk away from this agency?

    Oaksoft - why do you avoid working with contractors? Or did I get the wrong end of the stick?

  7. #7

    4Contractors

    Guest

    Default

    Are you trying to win a popularity contest Oaksoft.....or perhaps you are trying to compete with threaded

  8. #8

    tim123

    Guest

    Default

    Claire,

    you can ask the agent what benefit there is to you in your opting out. There is noting stopping the agent offering you a better rate if you do so, nor in your expecting it.

    Can't answer the point about PN. If the client want's you to have it, then the client want's you to have it. Just tell them for now that you'll get quotes elsewhere and see how good their quote is. Be aware that there is a history of bogus companies offering such insurance so cheaper isn't always better.

    Oaksoft doesn't like working with contractors for permanent placements. As a long time contractor I can confirm that his concerns are often justified.

    tim

  9. #9

    mailmannz

    Guest

    Default

    Claire,

    You can opt out of the regs now and then when offered the contract you can opt in. I would strongly suggest that you opt back in as this provides protection from dodgy agents (if you opt out you have no come back if they decide NOT to pay you).

    They cannot stop you from opting back in...especially not when they have sent you the contract to sign and return to them

    Regards

    Mailman

  10. #10

    clairenw

    Guest

    Default

    Hmmm, problem is that for this particular contract, the "hirers" insist on contractors opting out. Big company too, not that I'm naming any names, F*j*tsu. They're a big name, but sometimes they're the worst ones for paying up, aren't they?

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