Advice needed on agency issue

**NotAllThere** · 7 May 2011, 05:49

Here's some advice.

Read the response when you post - you'll have got a message that your post will have to be approved before it will be seen. Posting the same message three times won't help that. I've deleted the other two duplicates.

Spell words out in full. "You" not "u". And try and get your head around the concepts of paragraphs, and punctuation - just a stream of text is very hard to read.

When you've finished typing, read through before hitting the submit button. Make sure what you've written is coherent. On this occasion I've fixed it for you.

The agency introduced you to the client. The client almost certainly has a clause in their contract which precludes taking you on direct. What is stopping you getting the job is the refusal to cut your rate. If the job pays you £200 a day, you have my sympathies. If it's £500 a day, £100 commission is not unusual.

**2funky** · 7 May 2011, 10:16

Thanks for the advice ! I was on my iphone and so did not have the luxury of being able to type things out in a more clearer fashion, I will remember this going forward. As I am very new to contracting I obviously have not done enough research.

My rates was 430 per day and I believe the agency was asking for 535 per day. I suppose if I really want this job then I would need to go back and look at whether I can afford to take a drop in my daily rate to accommodate. Working as a permi I am still finding it hard to calculate whether I should drop my rate.

Thanks again.

**pmeswani** · 7 May 2011, 11:25

Originally posted by 2funky View Post

Thanks for the advice ! I was on my iphone and so did not have the luxury of being able to type things out in a more clearer fashion, I will remember this going forward. As I am very new to contracting I obviously have not done enough research.

My rates was 430 per day and I believe the agency was asking for 535 per day. I suppose if I really want this job then I would need to go back and look at whether I can afford to take a drop in my daily rate to accommodate. Working as a permi I am still finding it hard to calculate whether I should drop my rate.

Thanks again.

£430 p/d is a lot more than what I am on. I would seriously look to drop your rate a bit. Why can't you afford, for example, £350 p/d? Are you going to be caught inside IR35? If not, you can earn a decent take home income and have money to spare.

**Wanderer** · 7 May 2011, 12:32

Originally posted by 2funky View Post

I was approached by an agency a while back on a 1 year contract role, local to where I live ( and is actually my previous permie employer). I really wanted this contract and put myself forward for it. The agency got it to the point where they started negotiating rates, and, to cut a long story short, as the company won't meet the rate demands of the agency - the agency asked me if I wanted to cut my rate. I had already done so once, but refused to go any lower.

Now as I know the people at the company, I've been in touch and they really want me to start ASAP. I know the agency is adding £100 on top of my rate and as they won't budge on their uplift, the company can't meet that and, as such, it's a no go. I wanted to go direct to the company as I could get in immediately and they would meet my rate requirements, the agency have essentially said this contract is no longer an option and there's nothing I could do about it.

They tell me that I could not work for that company directly or via another agency for 1 year. I cannot believe that I'm in the position, as I was desperate for the contract and the fact the fact the agency charge such a high commission is essentially stopping me getting this job. Any ideas on anything that I may be able to do? Need some real help :-(

I don't know your skillset or you personally, but as pmeswani says £430 is fairly good money and you should consider taking the job if you really want it. I'm amazed that the agency are refusing to negotiate on a deal that would apparently net them ~ £20 grand though.

With that mark-up they can't be on a preferred suppliers list so there is a very real chance that they won't get someone in there and they will get nothing.

As for the tie-in clause, these are a bit controversial. If you were already known to the client then you could argue that this is an unfair restraint of trade and is not enforceable. The other thing is, you know that "opt out" form that the agent was so anxious for you to sign, did you sign and return it? If you refused to opt-out then this restriction is not valid as the agency regulations put a time limit on this type of restriction giving a maximum tie in of 14 weeks from the start or 8 weeks from the end of the assignment (whichever is later). If you did sign the opt out, then you've learned a lesson - don't sign these in future, there is no obligation to do it!

I would speak to the client and see if they will negotiate with the agency, engage you direct or even engage you through a different agency. If you and/or the client try to cut the agency out then there will be uproar. Generally, I'd only do it if the client was willing to take the battle on and knew what they were doing otherwise it could all end in tears.

**NotAllThere** · 7 May 2011, 16:13

Originally posted by Wanderer View Post

I don't know your skillset ...

Can't be technical, or he wouldn't be using an iPhone.

The issue will probably be between the client and agency. There almost certainly is a no-direct agreement in their contract, which will have been put in place before they interviewed anyone.

**VectraMan** · 7 May 2011, 16:52

Originally posted by NotAllThere View Post

The issue will probably be between the client and agency. There almost certainly is a no-direct agreement in their contract, which will have been put in place before they interviewed anyone.

WTS. Talk to the client direct; it's them that will be running the risk of being sued (assuming you haven't signed anything). It may be futile, but you've got nothing to lose by trying.

If you're going to hold out for a high rate, then you've got to accept that some jobs just won't come off. I think I'd be inclined to accept a modest rate to get that first gig, and then try a bit harder for gig #2. Unfortunately being screwed by agents is just part of contracting.

**Scrag Meister** · 9 May 2011, 08:14

How much are you going to have to drop to get the contract?

For my first contract I was happy to take a comparatively low rate to get my foot in the door.

GL

**Sockpuppet** · 9 May 2011, 09:54

Feck it and go direct. You used to work there so I'd say any introduction was easily challenge able in court.

**the_rangdo** · 9 May 2011, 09:57

Originally posted by Scrag Meister View Post

How much are you going to have to drop to get the contract?

For my first contract I was happy to take a comparatively low rate to get my foot in the door.

GL

Ditto that, I took (and am still on) an average rate @ £350pd but I took the view I'd also be gaining experience on some tools I'd always missed out on in previous roles. Can all be added to the CV now to boost future negotiations.

And the 3 month role I accepted will have been 16 months come September when my current extension expires.

Advice needed on agency issue