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Is it legal for the company to retrospectively reduce my day rate?

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    Is it legal for the company to retrospectively reduce my day rate?

    Started a contract just over two weeks ago. All papers signed etc, with day rate clearly stated. Yesterday, the agency has called and followed up by email, saying that rates are being reduced w.e.f. 01 April and I have to accept (or not) by tomorrow. First, is this legal? Second, if it is, what should I look for in the contract that makes it clear that this can be done? If not, what do you propose I do? I have already declined to accept the rate cut, by the way. Be gentle - this is my first post!! Thanks.

    #2
    It's a contract variation; what laws do you think may have been broken? I can't think of one.

    It's up to you to accept it or not. Bottom line is unless you are supplying something they desperately need, you will have to take it or walk away. After just a short time there, walking away isn't going to be much of a threat, sadly.
    Blog? What blog...?

    Comment


      #3
      Originally posted by malvolio View Post
      It's a contract variation; what laws do you think may have been broken? I can't think of one.

      It's up to you to accept it or not. Bottom line is unless you are supplying something they desperately need, you will have to take it or walk away. After just a short time there, walking away isn't going to be much of a threat, sadly.
      Thanks. So it really isn't a legal thing at all - just a negotiation. If I refuse, and they decide to give me my one week's notice though, they'll need to pay me the day rate as per the contract won't they.

      Luckily, I think I am providing something critical, so we'll see what happens. I'll let you know.

      Thanks again for replying.

      Comment


        #4
        Originally posted by CZFred View Post
        Thanks. So it really isn't a legal thing at all - just a negotiation. If I refuse, and they decide to give me my one week's notice though, they'll need to pay me the day rate as per the contract won't they.

        Luckily, I think I am providing something critical, so we'll see what happens. I'll let you know.

        Thanks again for replying.
        No work, no pay (usually).

        Remember this is B2B, it's your company not being paid, not you personally.

        Comment


          #5
          You working in the finance sector? For a bank? It's to be expected if you are I am afraid.

          http://www.egos.co.uk/contract-breakers.htm
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by CZFred View Post
            Thanks. So it really isn't a legal thing at all - just a negotiation. If I refuse, and they decide to give me my one week's notice though, they'll need to pay me the day rate as per the contract won't they.

            Luckily, I think I am providing something critical, so we'll see what happens. I'll let you know.

            Thanks again for replying.
            1. They are only obliged to pay you for work actually performed. Usually this is backed by an approved timesheet.
            2. If you continue to work after the date of the effective rate cut, without their agreement, where they have confirmed that the rate cut has not taken effect, then you will have accepted the rate cut by "tacit acceptance". You will then be paid according to the new rate.
            3. You need to check the "variation" clause in your contract, as to the method of offer and acceptance of any variation(s). Usually this specifies "accepted in writing".
            I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

            Comment


              #7
              I'm no lawyer, but surely the retrospective bit at least isn't legal?

              Comment


                #8
                If you only started the contract 2 weeks ago, then the variation going back to 1 April can't be affected, since it pre-dates the actual date of your contract? Check the actual original contract dates (either in the contract itself, or, on the "Schedule").

                Name & Shame the agency?

                Souns like a bit of a balls-up to me.
                I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

                Comment


                  #9
                  Originally posted by Maslins View Post
                  I'm no lawyer, but surely the retrospective bit at least isn't legal?
                  Unless the contract says that they're going to pay you in apples but, at their discretion, they may decide to pay you in any other kind of fruit, and there is evidence that both parties understood this (because a judge would be pretty skeptical ) then, no, you can't unilaterally enforce some terms that weren't agreed

                  However, I think the OP is talking about one party threatening to invoke a legitimate termination clause unless the other party agrees to a variation, which is perfectly fine (insofar as the termination clause is fine).

                  Comment


                    #10
                    Originally posted by jamesbrown View Post
                    However, I think the OP is talking about one party threatening to invoke a legitimate termination clause unless the other party agrees to a variation, which is perfectly fine (insofar as the termination clause is fine).
                    Yup, that doesn't seem too unreasonable. Ie we agreed X, I now realise it's not working out for me, so we either need it to be Y or I'm going to have to terminate as soon as the contract says I can. The contractor can then either suck it up, or leave, but if they do leave they do get the original X for the period they did work.

                    Seems very different to we agreed X, you've done your bit, and some way into the contract I've now changed my mind, and you're only going to get Y for the work you've already done going right back to the start of the contract.

                    Comment

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