Agency cannot agree rate with end client: how do I proceed?

[northernladuk]

Am I correct to think that there is no contract between me and the agency to represent me for this role? Am I free to approach people at the site direct and negotiate a contract via any other route?

In a vast majority of cases it doesn't work like that. It isn't common for a client to have an agency AND take on direct. They have an agency in place to do away with the processes and effort to take on direct.

I know for a fact that this agent requires a percentage commission above the "allowed maximum" at this site. Also, though, this agent is a very good one to work through as he has many good connections. Probably the best agent in my sector as far as I can tell.

He is honest in that he explained to me the difference between the cut he was being offered, vs what he demanded. But I can't afford to hang around much longer.

You are a supplier relying on an upper agreement between client an agent. Once that is in place the agent can engage you to carry out the work. You are in the process too early here. The client and agent must agree the work first. Only then is there an opportunity for you. If those two can't agree a contract then there is nothing for you.

It is surprising they can't work this out. Agencies on fixed price agreements can charge as little as 5% if it's a big client with a churn of contractors. Anything over 15% is taking the piss. It all depends on how much you are worth though. There is a minimum value where it's just not worth the agents time. 5% of a £100 quid gig just isn't worth their time. They still have to cover costs.

As far as I can see you've not signed anything with the agency? Or have you? If you've not signed anything then there is nothing to terminate. But then, as I said, if the client and agency can't agree a price then there is no opportunity for you.

It's a weird situation. I've never heard of a client and agent not being able to agree a price but the key here could be the low rate. If the agent needs £40 a day minimum just to make ends meet and the gig is only 200 quid a day he's going to want a heft chunk of it.

Unfortunately in this case it looks like you are along for the ride and nothing much you can do. I'd keep an eye on this in the background but assume it's not going to happen and carry on looking.

Why the desperation to take what you describe as a piss take gig? Why do you need such a low rate?

[dweezil]

I don't know. What have you agreed? In writing or verbally.

There's a verbal contract that they can represent me in respect of this role. This agency is careful to obtain permission before submitting a CV.

I've never been in a situation before where the agency's commission rate prevented a role from progressing and I've been contracting for about 12 years.

[mudskipper]

OK - it sounds as if the agency are unable to offer you the role at terms that are agreeable to you.

If you have signed/agreed nothing, you are free to get the work through another channel.

However, the restriction is likely to be on the client - they are unlikely to be able to take you on directly without breaching their agreement with the agency.

But if the commission is above the maximum, I wonder if they have an agreement with the agency, and why they agreed to interview you in the first place?

[Lance]

There's a verbal contract that they can represent me in respect of this role. This agency is careful to obtain permission before submitting a CV.

I've never been in a situation before where the agency's commission rate prevented a role from progressing and I've been contracting for about 12 years.

If you go direct or via another agency then you breach that verbal agreement.
What can they do about it? Not a lot really. They can make a lot of noise. They can cause trouble with the client that could end up with you losing out anyway. To do that they need to find out though.

[dweezil]

In a vast majority of cases it doesn't work like that. It isn't common for a client to have an agency AND take on direct. They have an agency in place to do away with the processes and effort to take on direct.



You are a supplier relying on an upper agreement between client an agent. Once that is in place the agent can engage you to carry out the work. You are in the process too early here. The client and agent must agree the work first. Only then is there an opportunity for you. If those two can't agree a contract then there is nothing for you.

It is surprising they can't work this out. Agencies on fixed price agreements can charge as little as 5% if it's a big client with a churn of contractors. Anything over 15% is taking the piss. It all depends on how much you are worth though. There is a minimum value where it's just not worth the agents time. 5% of a £100 quid gig just isn't worth their time. They still have to cover costs.

As far as I can see you've not signed anything with the agency? Or have you? If you've not signed anything then there is nothing to terminate. But then, as I said, if the client and agency can't agree a price then there is no opportunity for you.

It's a weird situation. I've never heard of a client and agent not being able to agree a price but the key here could be the low rate. If the agent needs £40 a day minimum just to make ends meet and the gig is only 200 quid a day he's going to want a heft chunk of it.

Unfortunately in this case it looks like you are along for the ride and nothing much you can do. I'd keep an eye on this in the background but assume it's not going to happen and carry on looking.

Why the desperation to take what you describe as a piss take gig? Why do you need such a low rate?

The rate on offer to the agency is close to £30 per day, far below their minimum per day rate.

I've worked at this site before and people there know me: one person has contacted me and explained the situation as being the agency causing the problem. The agency themselves have said how far the £30 on offer is below their usual minimum daily commission. Really I should be on £50 more per day given the work that is being asked for BUT I need the money right now so I will take what's on offer. I have cashflow problems.

There is also an intermediate agency which runs timesheets at the site: they are also taking a cut I expect.

[FMCG]

OP - did the agency have the first conversation over the role with client or yourself?

Appreciate that you have now appointed the agency to represent you and so "should not" direct approach.

As an outsider - appears that the agency is being greedy. Surely the agency and client have either a "min %" or "min £" agreement in place already?

This is a really poor situation for you given that you are on the bench.

Seems your options are

1. approach client direct, downside is that you burn bridges with agency
2. allow agency and client to debate whilst keep seeking other roles
3. understand how much YOU would have to contribute to the agent

Personally, I would pursue #2

[northernladuk]

The rate on offer to the agency is close to £30 per day, far below their minimum per day rate.

I've worked at this site before and people there know me: one person has contacted me and explained the situation as being the agency causing the problem. The agency themselves have said how far the £30 on offer is below their usual minimum daily commission. Really I should be on £50 more per day given the work that is being asked for BUT I need the money right now so I will take what's on offer. I have cashflow problems.

There is also an intermediate agency which runs timesheets at the site: they are also taking a cut I expect.

As I suspected. Bearing in mind the figures I mentioned you'd expect an average of 45 quid a week so you can see why they say 30 is low. That said 50 is a bit high.

The fact it is a big agency is probably working against you. I'd imagine they have an account manager who deals with the client to pay for as well and they are probably less flexible than a smaller one to stop the client taking the piss again and again.

Difficult situation where you are asking an agency to do something at cost or less which they aren't in the business of doing. I am and I'm not surprised they aren't being flexible. Arguments both ways.

I'm sure I'll get flamed from certain posters for suggesting this but why not offer to go halves on the difference with the agency. Tell them to knock a tenner of the day rate they pay you and they swallow the other tenner a day and make the gig happen? I wouldn't normally say give in to an agency but it's clear the agency is not screwing you personally here, it's just not worth it for them. If you are that desperate then a tenner a day shouldn't be a problem should it?

Is this a Public sector? My advice would #2 as FMCG says. The client appears to be taking the piss offering low rates for a lot of work so that grates me but it appears your situation is dictating your options.

[TheCyclingProgrammer]

So I am free to approach this end client direct and bypass this agency?

There's might not be to be anything legally stopping *you* from approaching the client if you have no written agreement with the agency but there likely is an agreement in place between the client and agency already.

[northernladuk]

There's might not be to be anything legally stopping *you* from approaching the client if you have no written agreement with the agency but there likely is an agreement in place between the client and agency already.

This.. And be careful. The agency may not take too kindly you rocking the boat.

[dweezil]

As I suspected. Bearing in mind the figures I mentioned you'd expect an average of 45 quid a week so you can see why they say 30 is low. That said 50 is a bit high.

The fact it is a big agency is probably working against you. I'd imagine they have an account manager who deals with the client to pay for as well and they are probably less flexible than a smaller one to stop the client taking the piss again and again.

Difficult situation where you are asking an agency to do something at cost or less which they aren't in the business of doing. I am and I'm not surprised they aren't being flexible. Arguments both ways.

I'm sure I'll get flamed from certain posters for suggesting this but why not offer to go halves on the difference with the agency. Tell them to knock a tenner of the day rate they pay you and they swallow the other tenner a day and make the gig happen? I wouldn't normally say give in to an agency but it's clear the agency is not screwing you personally here, it's just not worth it for them. If you are that desperate then a tenner a day shouldn't be a problem should it?

Is this a Public sector? My advice would #2 as FMCG says. The client appears to be taking the piss offering low rates for a lot of work so that grates me but it appears your situation is dictating your options.

I think you meant £45 per day rather than week.

It's not necessarily a big agency, but I'd say it's the agency with the best reputatation in my sector thus the reason they demand a higher minimum daily commission. I don't want to upset this agency too much. I know the owner quite well, and he is the block, and he's told me so.

The end client is taking the piss given the level of expertise they need.

It grates with me to take any further cut myself as I will be back to a rate I was getting at that site 8 years ago. There's been a fair bit of inflation since 2010. Yes, it's public sector.

Strangely on Sunday I had a connect request on Linkedin from a manager at the intermediate agency (people who run timesheets and recruiting at the site): this agency appears to enforce the maximum commission rate allowed to other agents. I didn't connect. I am fairly sure my original agent would see me make that connection.