Wrong rate at contract renewal

[PadBasher]

Just had my contract renewed by my agency for a further 3 months beyond the original end date of 25th July and they have now come back and told me that the original rate was in error and was £40 to high, they now say that they cannot get the second extension formally agreed with the Client.
I have a signed contract with the agency for the extension until October and the agency a verbal and email acceptance of the extension until October with the client based on the original conditions, rates etc.
The original rate the agency had with the client for my services was lower than the original rate the agency had with my limited company, so the agency were effectively on a negative commission.
How do I stand legally etc. with the new contract? The agency have to give me 2 weeks notice.
The agency want me to talk to the client. I have a signed contract in place. Why should I talk to the client about my rate?

[NotAllThere]

First - ask the agency for documented proof of the negative commission. They could be lying in order to increase their commission by £40.

But that seems unlikely since they're telling you to talk to the client. Now that is their job, not yours. Though it might be a good idea to tell your client that you're in disagreement with the agency - if your relationship with the client is a good one.

Otherwise, you've a choice. Accept a rate cut - which perhaps you can make less than £40, seeing as the agency would rather make something than nothing - or the agency give you notice.

[b0redom]

The original rate the agency had with the client for my services was lower than the original rate the agency had with my limited company, so the agency were effectively on a negative commission.

I find that VERY hard to believe.

Your contract is with the agency. You can either suck it up and take the pay hit, or brazen it out.

If they can terminate you with 2 weeks notice, then you can hold them to that, but if you threaten to leave, they may roll over. It all depends how confident you are at finding another contract in the current market should it all go titsup.com.

[Lockhouse]

Just had my contract renewed by my agency for a further 3 months beyond the original end date of 25th July and they have now come back and told me that the original rate was in error and was £40 to high, they now say that they cannot get the second extension formally agreed with the Client

Sounds like you're being fed some tulips and daffodils to me.

[up4it]

I reckon they are spinning you a line!

[Xenophon]

I find that VERY hard to believe.

WHS

[Moptop]

If the agency were losing money, surely they wouldn't have waited until renewal to do something about it?

[Sausage Surprise]

The best one I've heard for a while that one

[PadBasher]

Just had my contract renewed by my agency for a further 3 months beyond the original end date of 25th July and they have now come back and told me that the original rate was in error and was £40 to high, they now say that they cannot get the second extension formally agreed with the Client.
I have a signed contract with the agency for the extension until October and the agency a verbal and email acceptance of the extension until October with the client based on the original conditions, rates etc.
The original rate the agency had with the client for my services was lower than the original rate the agency had with my limited company, so the agency were effectively on a negative commission.
How do I stand legally etc. with the new contract? The agency have to give me 2 weeks notice.
The agency want me to talk to the client. I have a signed contract in place. Why should I talk to the client about my rate?

The agency have now accussed ME of fraud and misrepresentation via email, they say that I informed them the rate I was on with the orginal agency (I had to change agencies due to the client reducing their supplier list).
I never at any point informed them the rate I was on with the original agency.
I have spoken to the original agency and they sent an email to my current agency with my rate etc. prior to the agency handover.
Should I seek legal action regarding being called a lair and fraud? Or should I seek a written apology and retraction of this email from my current agency?

[pmeswani]

The agency have now accussed ME of fraud and misrepresentation via email, they say that I informed them the rate I was on with the orginal agency (I had to change agencies due to the client reducing their supplier list).
I never at any point informed them the rate I was on with the original agency.
I have spoken to the original agency and they sent an email to my current agency with my rate etc. prior to the agency handover.
Should I seek legal action regarding being called a lair and fraud? Or should I seek a written apology and retraction of this email from my current agency?

Seek an apology in writing and give them 7 to 14 days to reply. Advise them that you will seek legal action if they fail to apologise. Even better, get a solicitor to send them a written letter / fax requesting a formal apology within the given timeframe. If they refuse to apologise, carry out the legal action against the agency for defamation of character, and feel free to name and shame the agency once the legal action has completed. And make sure you print out any communications illustrating the defamation of character and take it with you when seeking legal advice.

However, if they have evidence to support their claim that you lied, etc, you may need a lawyer / solicitor to defend yourself.