Agency saying "made a mistake on the rate", dropping it, wont pay invoice.

[Mincepie]

If they are refusing to pay for work previous done with a signed timesheet I I would be downing tools and telling client co I am sorry but the agents are playing silly buggers.

[SueEllen]

Agent is now trying to say I've never had any details of the assignment or rate, despite the obvious evidence to the contrary. They're refusing to pay my invoices too.

It's like arguing with a brick wall

Tell the client immediately and explain unfortunately you cannot continue without being paid by the agent. Then don't come in tomorrow.

If the agent has gone over the invoice payment time start Dunning. Use letters sent by registered mail not email. Asyou have it in writing what the rate is the agency has nothing to stand on.

[FrontEnder]

What is the difference in the rate you agreed and the rate they want to pay you? Fair enough if you don't want to say the actual rate, but is it a big drop?

Do you know what the agency is billing the client?

[LondonManc]

Thanks all for your replies - it's good to see you're all mostly thinking the same as me, it gives me a bit more confidence in arguing my case.

I'm talking to the client, and they seem to be on my side. I suspect there has been a genuine mistake on the agents part, and they're now trying to get out of it. Agent is now trying to say I've never had any details of the assignment or rate, despite the obvious evidence to the contrary. They're refusing to pay my invoices too.

It's like arguing with a brick wall

Before downing tools, etc., talk to the client again. Be bold, ask what rate they're paying the agent. If the client is paying more to the agent than you're getting, then there's no mistake, they're simply trying it on.

[psychocandy]

Before downing tools, etc., talk to the client again. Be bold, ask what rate they're paying the agent. If the client is paying more to the agent than you're getting, then there's no mistake, they're simply trying it on.

Good point. If client says they're paying say £500 and the rate you think you should be is £550 then something has gone wrong.

If however, your rate is £480 and agent is saying it should be £450 I'd put money on them trying it on to get a bigger cut. Or someone screwed up at agent and now they're trying to backtrack.

Be interesting if the rate is the same. Possibly agent accidentally told you the client rate? i.e. margin is NIL. Be interesting conversation then.

I'd be tempted to tell them if thats the case, knock 10% off and we'll call that my rate.

[LondonManc]

good point. If client says they're paying say £500 and the rate you think you should be is £550 then something has gone wrong.

If however, your rate is £480 and agent is saying it should be £450 i'd put money on them trying it on to get a bigger cut. Or someone screwed up at agent and now they're trying to backtrack.

Be interesting if the rate is the same. Possibly agent accidentally told you the client rate? I.e. Margin is nil. Be interesting conversation then.

I'd be tempted to tell them if thats the case, knock 10 quid off and we'll call that my rate.

FTFY

Ten percent? AYCOTBAC?

[SimonMac]

Before downing tools, etc., talk to the client again. Be bold, ask what rate they're paying the agent. If the client is paying more to the agent than you're getting, then there's no mistake, they're simply trying it on.

This confuses me on two counts.

Firstly of course the client is paying the agent more than the agent is paying you, where do you think their cut come from?

Secondly I would lay dollars to doughnuts a client will not tell you the rate they are paying the agent, it will be bound in a commercial agreement.

Are you still speaking to the original agent that made the mistake, or have you gone over his head to speak to a grown up? This will tell you if its genuine or not as if the agency has cocked up, it will have be escalated internally.

I agree with speaking to the client though, but as a courtesy to ensure them that you are trying to resolve the situation to ensure continuation of service, this will get the client berating the agent as well if they think you might walk

[LondonManc]

This confuses me on two counts.

Firstly of course the client is paying the agent more than the agent is paying you, where do you think their cut come from?

Secondly I would lay dollars to doughnuts a client will not tell you the rate they are paying the agent, it will be bound in a commercial agreement.

Are you still speaking to the original agent that made the mistake, or have you gone over his head to speak to a grown up? This will tell you if its genuine or not as if the agency has cocked up, it will have be escalated internally

Not necessarily. The whole concept of the thread is that the agent are saying that there has been a mistake in the rate - could be as PC suggests that the agent was given the whole figure and thought that was contractor's cut or it could be a VAT mix up.

[jmo21]

Be interesting if the rate is the same. Possibly agent accidentally told you the client rate? i.e. margin is NIL. Be interesting conversation then.

Despite how we all feel about agents, given the information so far (they paid the first invoice) I think this is the most likely scenario.

That being said, I would tell them you have no way of knowing whether that is the case or not, and expect to be paid the outstanding invoice (and have no deductions anywhere).

I would inform the client as well that the agent is trying to drop your agreed rate, and if they (the agent) do not sort it ASAP, then you will be forced to hand in your notice. This should get your client on the phone to the agent demanding answers.

Bear in mind, the client might not give a tulip, and the agency might simply terminate the contract.

[LondonManc]

Despite how we all feel about agents, given the information so far (they paid the first invoice) I think this is the most likely scenario.

That being said, I would tell them you have no way of knowing whether that is the case or not, and expect to be paid the outstanding invoice (and have no deductions anywhere).

I would inform the client as well that the agent is trying to drop your agreed rate, and if they (the agent) do not sort it ASAP, then you will be forced to hand in your notice. This should get your client on the phone to the agent demanding answers.

Bear in mind, the client might not give a tulip, and the agency might simply terminate the contract.

Why jeopardise your relationship with the client by being bolshie when it's not necessarily their fault? If the client has given the agency a figure and the agency has made an error with that, it's up to the agency to somehow explain this honestly () to both client and contractor.

It's easy enough for the agency to communicate the error with a placeholder of £x rather than an actual number. If the client and contractor then want to check that they both have x as the same value, that's a separate conversation.