Rate cut - 20% salary cut + 10% less hours - Acceptable?

[jf2010]

Been told today all contractors must take a 10% cut in hours (to 36 hours) (which is fine) and also a 20% rate cut. 5-10% rate cut I would consider but 20% seems very high along with the reduced hours.

I know this topic has been discussed recently here but my question is: Is 20% a normal cut to what you have experienced.

[Old Greg]

Been told today all contractors must take a 10% cut in hours (to 36 hours) (which is fine) and also a 20% rate cut. 5-10% rate cut I would consider but 20% seems very high along with the reduced hours.

I know this topic has been discussed recently here but my question is: Is 20% a normal cut to what you have experienced.

Forget what the old rate was. That's gone (probably, you could try negotiating if you are in a very strong position).

How does the new rate stack up against what you could get elsewhere? Could you walk into a contract easily?

You could always accept and then leave when you find something better.

[northernladuk]

What other option have you got?

[jf2010]

What other option have you got?

Good question. I just renewed my contract for another 6 months last week, and then get this news today. 2 weeks ago I had an offer of the same full rate for a new client, and refused in the end as I was renewed.

Current situation I am working remotely and a new job is not so appealing. I think I will just go to max 5/10% to attempt to negotiate.

[jf2010]

How does the new rate stack up against what you could get elsewhere? Could you walk into a contract easily?

Pretty bad. I would say 30% less in general. But, no I guess, couldn't walk into a new role as everything is so up in the air right now and slow.

[ladymuck]

You have two counter options: either 20% cut but no reduced hours, or lower rate cut with reduced hours.

Decide whether you can / will walk but don't mention walking in your negotiation or else you'll put the idea in their mind and they may just bin you off regardless.

If you can't walk, start looking, get a new gig then walk. Check your notice period.

[GhostofTarbera]

Good question. I just renewed my contract for another 6 months last week, and then get this news today. 2 weeks ago I had an offer of the same full rate for a new client, and refused in the end as I was renewed.

Current situation I am working remotely and a new job is not so appealing. I think I will just go to max 5/10% to attempt to negotiate.

When working from home you can do multiplie contracts, start the other one also

Are you on an hourly rate? That’s a bit strange


Sent from my iPhone using Contractor UK Forum

[Scruff]

I'm on an hourly rate. First time in 16 years...Not so strange in "The Industry" I'm in...

[PerfectStorm]

Have you got leverage or do you feel lucky to be there? That'll give you your answer.

There are exceptions, always.

[WTFH]

Current situation I am working remotely and a new job is not so appealing.

Was the original contract on site?