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Contract daily rate pay cut or 4 weeks notice

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    Contract daily rate pay cut or 4 weeks notice

    Hello all,

    Long time reader, first-time poster.

    I've been in my current contract as Ltd company for over 2 years but the client has now requested that all contractors are to take a pay cut (varying between 10% and 2.5% dependent on role) or face 4 weeks notice. I hadn't decided which way or the other once informed verbally by my agency but they seemed to have gotten a little trigger happy and declined the rate cut before I had confirmed, thus I have received the 4 weeks notice. I have since clarified the entire situation with the agency (by email) and the client but the client has taken the view that this is "an irreversible miscommunication". So, I have 3 months remaining on my contract which is now being invalidated due to a combination of actions/inactions by my agency and the client.

    Many thanks in advance for any helpful responses.

    Best regards,

    N

    #2
    What do you want us to advise on Naq (other than 'it is what it is - move on')?
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      They are not cutting your rate, they are giving you notice on your existing contract and then offering you a new one on different terms, it is your choice if you accept the new contract or not.

      If you have been on the same gig for 2 years I would be looking at the agent to reduce their margin as to be fair I doubt they'd have done much to warrant their end for some time, if you are direct try and negotiate towards the 2.5% rather than the 10%, should work if you are niche, if you are a generic bum on seat it won't.
      Contracting is like plumbing. You're your own boss until you walk into someone's house and they tell you to take your shoes off.

      Comment


        #4
        Originally posted by InsertWittyNameHere555 View Post
        They are not cutting your rate, they are giving you notice on your existing contract and then offering you a new one on different terms, it is your choice if you accept the new contract or not.

        If you have been on the same gig for 2 years I would be looking at the agent to reduce their margin as to be fair I doubt they'd have done much to warrant their end for some time, if you are direct try and negotiate towards the 2.5% rather than the 10%, should work if you are niche, if you are a generic bum on seat it won't.
        The issue is that the OP wasn't given the option to decide what he wanted to do the agency just rejected the rate reduction resulting in the OP being given 4 weeks notice. Given the current state of the market across various sectors and areas I can understand why the OP is annoyed.

        But as Cojak stated there doesn't seem to be much that can be done about it so best to start looking asap....
        Last edited by eek; 30 May 2017, 11:50.
        merely at clientco for the entertainment

        Comment


          #5
          I'd guess the only thing you could do is take the agency to court.

          But I'd also guess the chances of you winning are slim to none.

          Comment


            #6
            Thanks for replies so far.

            Yes, I am a little annoyed. A 2-year gig is good but low compared to some in the same location (some 8+). It is what it is but with 3 months left on my existing contract, the questions I have are:

            a) Is right and/or legal to force notice on a contract for not accepting a change in conditions? (Understandable at renewal but not mid-contract).
            b) Is the agency in some way liable for the miscommunication that brought about this situation in the first place? (Otherwise, I'd still be in contract for the forseeable future).

            I'm definitely looking elsewhere now and echoing some of the comments above, a 2+ year gig is good, however, a 3+ one would have been better!

            Thanks again for any advice given.

            N

            Comment


              #7
              It does look like you missed the deadline, you usually have a deadline to respond to the rate cut, after which the client simply culls anyone who hasn't agreed. In these circumstances it is quite common for them to play hard ball. I think it would be difficult to hold the agency to account, as they've simply terminated according to the notice period, and you hadn't agreed to the rate cut.

              I would move on.
              Last edited by BlasterBates; 30 May 2017, 12:48.
              I'm alright Jack

              Comment


                #8
                Originally posted by BlasterBates View Post
                It does look like you missed the deadline, you usually have a deadline to respond to the rate cut, after which the client simply culls anyone who hasn't agreed. In these circumstances it is quite common for them to play hard ball. I think it would be difficult to hold the agency to account, as they've simply terminated according to the notice period, and you hadn't agreed to the rate cut.

                I would move on.
                Funny things rate cuts.

                It should be noted they do not necessarily affect everyone in a particular org, regardless of what is communicated, because:-

                Some contractors simply refuse and they are needed so the rate doesn't get cut.
                Some contractors don't even get asked.
                Some agencies / consultancies have some kind of contractual arrangement, with the client, which means the rate cannot be reduced.

                In fact I know someone that refused a cut and then asked for and got extra at renewal
                The Chunt of Chunts.

                Comment


                  #9
                  Originally posted by FrontEnder View Post
                  I'd guess the only thing you could do is take the agency to court.

                  But I'd also guess the chances of you winning are slim to none.
                  And very expensive.

                  So move on.....

                  Comment


                    #10
                    Sounds like they wanted to reduce the contractor headcount and total cost anyway. Reduce rate and see who stays is one way around that... Although you're not likely to keep the quality with such an approach!!!

                    So if client wanted to reduce headcount, it's not a surprise they want you to leave. If there are people there contracting through an ltd for 8+ years, there are probably bigger issues to worry about...

                    Comment

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