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Company insists I contract via an agency

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    Company insists I contract via an agency

    Hi, I'm in discussion with returning to a company I contracted for previously via an agency over a year ago, i.e. no longer any obligation to go via them and paying them the usual cut. But the company has a policy of only hiring contractors via an agency and have quoted a max rate they're prepared to pay including agency fee, I already have my own limited company which I use for contract work.

    Are there any agencies who handle this sort of arrangement for a minimal fee to just handle the paperwork and payment process, if so what sort of cut would I expect to pay? What reasons is the company likely to have for this policy, are there legal issues that concern them about contracting me via my own company directly, or is it just a case of simplifying their paperwork?

    Thanks for any help.

    #2
    Originally posted by GreatApe View Post
    Hi, I'm in discussion with returning to a company I contracted for previously via an agency over a year ago, i.e. no longer any obligation to go via them and paying them the usual cut. But the company has a policy of only hiring contractors via an agency and have quoted a max rate they're prepared to pay including agency fee, I already have my own limited company which I use for contract work.

    Are there any agencies who handle this sort of arrangement for a minimal fee to just handle the paperwork and payment process, if so what sort of cut would I expect to pay? What reasons is the company likely to have for this policy, are there legal issues that concern them about contracting me via my own company directly, or is it just a case of simplifying their paperwork?

    Thanks for any help.
    Chances are, they're not going to let you go through just any old agency. If they allow you to pick an agency at random, then they are going to end up with extra work to administer this.

    What they probably mean is that they want you to go through 'their' choice of agency. If they have a sole supplier agreement with someone, then they have one invoice to pay for all their contractors.

    The key here is that they want to minimise their admin costs.
    When freedom comes along, don't PISH in the water supply.....

    Comment


      #3
      WTMS.

      They will (should) have a list of approved suppliers that will act in a payroll type capacity. It removes the need to go through their overly complicated process of getting procurement to add a new supplier to their systems, getting their legal dept to approve a contract wording, getting finance to do their bit etc.

      Agencies will hopefully be on a fixed margin for this.

      Comment


        #4
        Ask DodgyAgent to pick it up for you. He charges around 50%.
        What happens in General, stays in General.
        You know what they say about assumptions!

        Comment


          #5
          Originally posted by MarillionFan View Post
          Ask DodgyAgent to pick it up for you. He charges around 50%.
          He talks a good game, but I've heard you can get him down to 48.5% with a bit of hard negotiation.
          When freedom comes along, don't PISH in the water supply.....

          Comment


            #6
            Originally posted by TestMangler View Post
            He talks a good game, but I've heard you can get him down to 48.5% with a bit of hard negotiation.
            I do appreciate your overestimation of my negotiating skills but in all honesty a freebie like this should be run at 5%
            Let us not forget EU open doors immigration benefits IT contractors more than anyone

            Comment


              #7
              Originally posted by DodgyAgent View Post
              I do appreciate your overestimation of my negotiating skills but in all honesty a freebie like this should be run at 5%
              They're you go OP. What an offer.

              Dodgy Agent will run the contract for you and pay you 5%. Result.
              What happens in General, stays in General.
              You know what they say about assumptions!

              Comment


                #8
                Originally posted by DodgyAgent View Post
                I do appreciate your overestimation of my negotiating skills but in all honesty a freebie like this should be run at 5%
                Where's TAV with his competitive tender ?

                C'mon TAV, can you beat 5% ?
                When freedom comes along, don't PISH in the water supply.....

                Comment


                  #9
                  Originally posted by DodgyAgent View Post
                  I do appreciate your overestimation of my negotiating skills but in all honesty a freebie like this should be run at 5%
                  Yep. That's what a mate of mine got in a similar situation.
                  Behold the warranty -- the bold print giveth and the fine print taketh away.

                  Comment


                    #10
                    The cheapest I ever got was 6%.
                    Fiscal nomad it's legal.

                    Comment

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