Rate Cut 6 Weeks Into a 6 Month Contract

[BolshieBastard]

Unless your have a top paying contract there and 12.5% reduction still leaves you in the best paying contract you could find, I'd send a letter stating that the rate is non-negotiable for the duration of the current contract.

If they terminate you, fine, invoice at full rate for the time you have done and move on.

During the last downturn, those that accepted a rate cut easily found another 2 or 3 rate cuts down the line. It sets an easy precedent. Don't accept it.

The reality of it is this is exactly what the client would do. The agent wont help either.

I was at Barclays in 2001 when they cut rates by 20% a few weeks after a renewal. I'd been told personally by spring, my rate wouldnt be cut since my daily rate wasnt considered hig at the time.

Despite this, Barclays still notified me via their intranet(!) of the rate cut, take it or leave it. I spoke to spring and told them I'd negotiate a possible rate cut from the end of the current, renewed contract, not before. Reminded spring what they told me at renewal only a few weeks later and said what would barclays reaction had been if the market was in my favour and I'd demanded a rate increase of 20%?

Spring just said they had to work with their client. Told then to stuff the rate cut and left after 4 weeks notice.

Didnt get a job for ages after that either. So, the thing to do is grin and bear it while looking for a new role. That's what Id do.

[portseven]

We get hit with tulipe like this and HMRC still thinks we are disguised employes!

Imagine if permies were told take a pay cut like this or leave, the unions and lawyers would have a field day

One point of view is that, if you do stay and take the cut, maybe it could help with your IR35 status?

P.S. I was at Barclays in 2001 when they did the rate cut thing, the buggers. I stayed and took the cut, figured a bird in the hand was worth 2 in the bush

**

[Fred Bloggs]

Get a new gig and leave.

[s2budd]

You have to weigh up what the market is like at the moment. When I was at Barclays in 2001 I took the rate cut on the chin. I didn't like it but the market at the time was dead - very dead. You were lucky to see £25 per hour contracts at the other end of the country and that was a high rate.

At the moment I the market is not dead. Just look on Jobserve. There are loads of contracts about and decent rates - don't forget also that it's Summer so the market is not that great anyway.

I think the banks are just trying it on when the market does not justify the rate decrease. I would look about and apply for other contracts up to the period when the new rate comes in. Then if you are offered one just leave. You did not break the contract terms the end client did so take it as a win win situation.

You could also offer to stay with a 10% increase. That will please them !

[Turion]

Call their bluff and leave. Too many spineless contractors just bend over when this happens. Market is OK so you should get something else easily enough.

[NotAllThere]

If your agent has a high margin, tell them to absorb some or even all of your hit, or you walk.

E.g. £400 a day - they're on £600. Their rate drops to £480. If yours stays at £400, that's still a reasonable margin of 16%.

( Another reason to be interested in the agency margin ).

[Malingering BA]

Happened to me in 2001. Client (a big telco) told all contractors on site through their agents that due to "market considerations" it was a take it or leave it 10% rate cut. I just gave them the bird and walked off to another higher paying contract closer to home.

They did have the decency to give 30 days notice though, although my crook of an agent tried to bluff me that it was with immediate effect and I still had to work out 30 days notice at the reduced rate.

[SantaClaus]

Best advice is as a previous poster said, accept the cut and look for another contract from the safety of your current position.

Now what was that quote, "cutting one's nose to spite your face"

[mailric]

this sets a dangerous precendent. soon enough they'll be agencies starting people on decent rates just to get us signed up then cutting them purposefully.

understand if the clients budget is being cut all of a sudden due to markets etc but this sounds dodgy as...