I have just discovered that my agency is netting 25% on my daily rate. I have never experienced such sharp practise in my 10 years of IT contracting. Do I have a legal leg to stand on? As I am hoping to challenge them on what I believe to be extortion.
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Agency excessive margin
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Are you getting what you agreed to get? If so, what's the problem? What do you intend doing about it anyway? Ever tried suing Sainsbury's for their mark-up on sirloin steaks?
Anyway, they aren't getting 25%, you're getting 80%: after 10 years you should at least have an idea how that works.Blog? What blog...? -
Originally posted by workitout View PostI have just discovered that my agency is netting 25% on my daily rate. I have never experienced such sharp practise in my 10 years of IT contracting. Do I have a legal leg to stand on? As I am hoping to challenge them on what I believe to be extortion.
Why do you care? If you're happy with your rate, and the client is happy to pay the gross, what's the problem?
What do you hope to gain from challenging them? The most likely outcome is that you'll keep your rate (as per your contract) and the client will pay less. And the agent will then possibly start looking for your replacement....
If you do really want to reduce the client's outlay for you out of the goodness of your heart then the legal route's not the best approach, you'll need to negotiate with the agent. This may only be successful if you're on your second or third extension and can justify them reducing their margin.Comment
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The agency offered you work at a certain price, you accepted and signed the contract, case closed.
Your only 3 options are:
A) Suck it up and negotiate better next time
B) Ask for more money at contract extension
C) Serve your notice and walk after it's finishedComment
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Many agents will start the negotiation at 40%. Sad thing is that if you play hardball, many will just drop you and go for the low hanging fruit. They don't really care about quality. As long as what they put in front of the recruiter is viable and provides the most amount of profit, they are happy.
Th best bargaining chip is to have niche skills that are in demand.Comment
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Originally posted by workitout View PostI have just discovered that my agency is netting 25% on my daily rate. I have never experienced such sharp practise in my 10 years of IT contracting. Do I have a legal leg to stand on? As I am hoping to challenge them on what I believe to be extortion.
BTW of you do challenge him please record his response for us lol..Last edited by northernladuk; 12 March 2015, 10:09.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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BTW.. You are getting 80% of his rate not the other way aroundLast edited by northernladuk; 12 March 2015, 10:17.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostBTW.. You are getting 75% of his rate not the other way aroundBlog? What blog...?Comment
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Originally posted by malvolio View PostNo, he's getting 80%...'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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20% is not too bad. I found out I got stung for 40% at last gig - must admit I was a bit peeved.
As someone said, claiming extortion is taking the piss. If you get away with it, as someone said, Im off into tescos later to see how much they made on those cornflakes they sold me.Rhyddid i lofnod psychocandy!!!!Comment
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