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Asked to take a rate cut during contract

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    Asked to take a rate cut during contract

    My contract was for a fixed number of days 231. Rates agreed etc all signed by Agency and Outsource entity. End client is pushing the Outsource entity to push the agency for me to cut my rate. I am assuming this actually is not possible contract was signed for x number of days.

    They will have to lump it but may then try and get someone cheaper but again there is no notice period its a fixed contract 231 days.

    Any advice appreciated

    #2
    Originally posted by monkey99 View Post
    My contract was for a fixed number of days 231. Rates agreed etc all signed by Agency and Outsource entity. End client is pushing the Outsource entity to push the agency for me to cut my rate. I am assuming this actually is not possible contract was signed for x number of days.

    They will have to lump it but may then try and get someone cheaper but again there is no notice period its a fixed contract 231 days.

    Any advice appreciated
    It's only a fixed contract of 231 days if they ask you to do work and provide work for you to do.

    Don't be surprised if you suddenly find yourself no longer required...
    merely at clientco for the entertainment

    Comment


      #3
      Originally posted by monkey99 View Post
      My contract was for a fixed number of days 231. Rates agreed etc all signed by Agency and Outsource entity. End client is pushing the Outsource entity to push the agency for me to cut my rate. I am assuming this actually is not possible contract was signed for x number of days.

      They will have to lump it but may then try and get someone cheaper but again there is no notice period its a fixed contract 231 days.

      Any advice appreciated
      Assuming it's a day rate contract, it's not actually all that unusual. RBS used to do it all the time. The agency would say they're cutting the rate by x and if you don't want to accept they'll assume you're invoking your notice period.
      If you don't have anything nice to say, say it sarcastically

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        #4
        Has the client actually communicated a rate cut or is the outsourcer saying the client wants a rate cut. Two different scenarios.

        Sadly, there isn't much you can do as chances are your choices are accept or have your contract terminated. It's a nasty tactic that gets used a lot.

        The rate change is a contractual change and one that would require updated paperwork. Maybe use the opporunity to get a notice period or other more favourable terms included in the contract.

        Comment


          #5
          There are no dates around renewals or re-signing at all? I remember my last two or three contracts have a maximum number of days in them but they were still renewed every three months. The number of days was more like a cap rather than an agreement. If you didn't take holidays you'd hit the cap and have to take the last two or three weeks off which happened to quite a few people.

          If you took say four weeks off would the period you were the the client be extended so you still worked those days? I'd be surprised as it's a very high number and I don't think they could plan that accurately for that length of time. It would also tie them in and they couldn't ask for reductions which further make me think you might be misunderstanding your contract.

          But at the end of the day they can ask for a reduction any time they want. What does your contract say about notice? At worst they give notice on the contract and start a new one at the new rate. I cannot see for one minute that anyone can have a contract that is so tight that it can't be changed/ended for reasons of money.

          I could be wrong but I'd check your contract carefully and understand how it works. Do you have renewals, are there dates on it etc.. and what are the termination clauses and so on. Something doesn't sound right.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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            #6
            What % of cut are they pushing for?

            Comment


              #7
              Originally posted by KinooOrKinog View Post
              Assuming it's a day rate contract, it's not actually all that unusual. RBS used to do it all the time. The agency would say they're cutting the rate by x and if you don't want to accept they'll assume you're invoking your notice period.
              To which my response would be, especially if the end client was RBS, the PSC I represent has a contract with the agency not the client so the agency can accept a cut from the client if they wish to... no chance of passing it on to me. Unilaterally changing terms of a contract isn't something I tolerate...

              I'd also point out that should the agency and client wish to terminate, then I wish them well in their future endeavours, especially sourcing another contractor willing to take the lower rate.

              Of course, if the client was RBS I'd be happy as feck to get out of there anyway.

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                #8
                If this information is coming from the agency, I'd be a bit sceptical as to whether it's actually true.
                Down with racism. Long live miscegenation!

                Comment


                  #9
                  I experienced a 10% rate cut request, during the 2008 crisis. I took it at the time, as the market was in a bad state.

                  Are your skills rare enough that you could refuse the rate cut request? If not, then you do not have much of a choice in this market.

                  Comment


                    #10
                    Originally posted by caffeine man View Post
                    I experienced a 10% rate cut request, during the 2008 crisis. I took it at the time, as the market was in a bad state.

                    Are your skills rare enough that you could refuse the rate cut request? If not, then you do not have much of a choice in this market.
                    If my client asked me for a 10% rate cut right now I would probably accept without any counter. I think it's reasonable given economic circumstances + no time and expenses spent travelling to site.

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