Day Rate Reduction

[baggies1]

Hi looking for some advice,

I am being offered an extended contract but at a reduced rate due to some admin costs (apparently!).

As my contract has expired i wanted to take up a new contract with another 3rd party who are offering around £20/30 per day more.

I have asked my existing agency for a contract increase given i have worked for them for nearly 3.5 years however was turned down flat.

I have a clause in my contract which states waiting for a period of 3 months before i can go work for my existing client but via another agency.

Therefore the agency are playing hardball around working for another agency.

Does anyone have any experience of this or can offer any advice?
I want to be able to negotiate my position however it feels like im trapped to whatever rate they decide they are going to pay me.

I have checked in with other agencies supplying the same customer and they are not applying an administrative cost to there contractors.

Seems grossly unfair.

Any thoughts or suggestions?

[NotAllThere]

You can't change agencies without a 3 month break. Tell the agency you want a 10% uplift on your current rate, or you walk. This is your absolute only leverage for negotiation. If you get the uplift, that's good. If you don't, that's life, find a new contract. Regarding unfairness - tell the universe and I'm sure it will reverse the situation for you.

If it helps, the agency is almost certainly lying to you, and just trying to increase their profit.

[northernladuk]

In a case where you are trying to jump ship to another agency that will leave the old agency out of pocket the handcuff is most likely going to stand, even if it's poorly written or too woolly. It's not likely to go legal but if the new agency can see it's valid they'll probably not want anything to do with the fall out.

I'd say your only option is to play hardball with the existing agent. If you leave the other agency can put someone else in and your original agency get's nothing so you've got some negotiating power. They need you as much as you need them.

Although IR35 isn't technically anything to do with length of time I'd re-asses your status after 3.5 years and more. And claiming mileage and travel and subsistence is all but a distant memory?

[TonyF]

I want to be able to negotiate my position however it feels like im trapped to whatever rate they decide they are going to pay me.

I have checked in with other agencies supplying the same customer and they are not applying an administrative cost to there contractors.

Seems grossly unfair.

Any thoughts or suggestions?

This is the nature of contracting - you aren't trapped at all, but this is the rate that the agent is offering you / your company for doing the work. You are now perfectly free to accept or reject their invitation, and if you aren't happy with that then you should reject the offer and move on to something else.

Just because other companies aren't charging something doesn't mean that it's unfair - I charge my client more than the person next to me (who possibly does more work). Is that unfair? No, it's the way that we do business.

If you want to stay with your client you know what the offer is and you either accept, reject or renegoitate the offer. If you don't want to stay with the client then leave and find something else to do.

[l35kee]

Is the new agency offering you your old day rate, or £20-30 (which is it?) than your old day rate?

Option 1:
Threaten to leave unless they pay you the same rate/increased rate (see above).

Possible Results:
a. they agree.
b. you leave with no probable contract lined up to replace it (3 months is a long time, you probably won't get the role, hence why it is in the contract).

Option 2:
Stay and accept the lower rate.

Possible Results:
You'll still end up better off anyway? How many weeks will you be without any day rate, vs without a lower one.

It's a risk, depends on your ability to get a new contract/niche skills (ability to replace you easily)..

[stek]

Think with your balls...

[SlipTheJab]

Think with your balls...

3.5 yrs at one client, i would be going up the wall by now , demand the increase from the current agency and walk if you don't get it. TBH If it was me I would hope they say no so I do walk rather than end up as a permitractor HTHBIDI

[northernladyuk]

Is the new agency offering you your old day rate, or £20-30 (which is it?) than your old day rate?

Option 1:
Threaten to leave unless they pay you the same rate/increased rate (see above).

Possible Results:
a. they agree.
b. you leave with no probable contract lined up to replace it (3 months is a long time, you probably won't get the role, hence why it is in the contract).

Option 2:
Stay and accept the lower rate.

Possible Results:
You'll still end up better off anyway? How many weeks will you be without any day rate, vs without a lower one.

It's a risk, depends on your ability to get a new contract/niche skills (ability to replace you easily)..

I'll stick a pony on 2. Any takers?

[PhiltheGreek]

I'll stick a pony on 2. Any takers?

Nobody will take that bet

[TonyF]

I'll stick a pony on 2. Any takers?

Nay