• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Renogotiating a contract after first couple of weeks.

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Renogotiating a contract after first couple of weeks.

    Hi there

    I recently secured a contract with an agency and accepted the daily rate via a job confirmation, however I have not as yet signed an official contract despite working at the client site for several weeks.

    I want to re-negotiate but the agency will not offer any more, depsite the contract being advertised with different agencies at a 20% higher rate.

    Additionally, the 'Conduct of Employment Regulations' states: The agency should offer and receive a signed opt-out declaration before me the contractor is introduced to the client, otherwise the opt-out could be invalid, leaving the agency in breach of the regulations, and also preventing the agency from putting restrictions on the contractor that have been requested by the client. I have not yet signed the opt in/out declaration.

    Where do I stand in terms of the contract and do I have any bargaining power to increase the daily rate.

    If I do opt in, I then have more flexibility at the end of the contract but then there could be potential IR35 issues.

    Thanks in advance.

    Last edited by steveweaver; 9 July 2010, 01:05.

    #2
    Never start a role without signing the contract - some agencies will refuse to pay you if you haven't signed the contract.

    While you can argue in English and Welsh law (sorry don't know about Scotland and NI) that the intention of both parties was to sign a binding written agreement the fact that:
    1. You didn't disagree verbally with the rate and have no evidence that you did this before you started the role, AND
    2. You have worked on the client site for a few weeks without complaint,
    are strong indicators that you have already agreed to accept the contract terms.

    Plus how do you know that the other agencies aren't just on a CV gathering exercise?

    You can if you are careful and cunning find out the rate the agency receives for you from the client, and so if you are renewed you can argue for an increase from the agency. However depending on how big the agency margin is i.e. if it's 22% or under then you may not get an increase.

    And with regards to opt-in and opt-out I wouldn't bring it up. You are already opted-in until renew. Do a search on this board and you will see that it has very little to do with IR35. Agencies only use it as a tool to place more restrictive covenants on contractors.
    "You’re just a bad memory who doesn’t know when to go away" JR

    Comment


      #3
      To be honest I don't think you should be renegotiating your rate at this point. You have agreed a rate with the agent (which presumeably you were happy with) and you have started the work. I wouldn't have started without a contract but that's a secondary issue.

      So you think you should have asked for a higher rate? Maybe you got the work because of the rate you asked for. You are a business person and you have already agreed a price for the job. If you think there's room for movement then renegotiate at renewal time. It seems really unprofessional to me to try renegotiating a few weeks into the contract.
      Loopy Loo

      Comment


        #4
        From bitter experience, never, ever start a contract without signing an appropriate contract, particularly if you've never dealt with the agent and client before (such as Elan and Diageo).

        If you're already in the contract, stop what work you're doing and address it immediately.

        Comment


          #5
          Originally posted by lje View Post
          To be honest I don't think you should be renegotiating your rate at this point. You have agreed a rate with the agent (which presumeably you were happy with) and you have started the work. I wouldn't have started without a contract but that's a secondary issue.

          So you think you should have asked for a higher rate? Maybe you got the work because of the rate you asked for. You are a business person and you have already agreed a price for the job. If you think there's room for movement then renegotiate at renewal time. It seems really unprofessional to me to try renegotiating a few weeks into the contract.
          WHS, you took the rate and got the contract who's to say you would have got it via the other agencies, 2 weeks in is not the time to renegotiate, wait until renewal time and if you have done a good job you can show some justification for any increase requested, your on dodgy ground as it is with no contract so don't rock the boat as the agency could be thinking this guy is giving us hassle 2 weeks in but its ok he does not have a contract so lets get rid of him now

          Comment


            #6
            Thanks for the advice everyone.

            To be fair I have been unhappy with the rate from 'early doors'(I indicated this via an email but its been dragging on) and the agency was economical with the truth from the start which led me into signing the job confirmation.

            The client has given really positive feedback and this is a niche role, so finding someone wont be easy as they have really struggled.

            I have a big pair of B@ll@c*s so I will se what transpires out of all this.

            Thanks again everyone

            BTW They have specified an opt out term on the contract and secondly my timesheets have been authroised and paid for 2 weeks.
            Last edited by steveweaver; 9 July 2010, 08:41.

            Comment


              #7
              Originally posted by steveweaver View Post
              I have a big pair of B@ll@c*s so I will se what transpires out of all this.
              Most likely no more contract and a teed off client. You don' actually have a leg to stand on.
              BTW They have specified an opt out term on the contract and secondly my timesheets have been authroised and paid for 2 weeks.
              Then you are bound by whatever contract was on the table the day you started that you have clearly accepted. Unless there has been a material change in the role or the conditions - whic there hasn't - you have no basis for an argument.

              So leave well alone until renewal, and meanwhile make yourself indispensible. Then look for a raise.
              Blog? What blog...?

              Comment


                #8
                Originally posted by malvolio View Post
                Most likely no more contract and a teed off client. You don' actually have a leg to stand on.

                Then you are bound by whatever contract was on the table the day you started that you have clearly accepted. Unless there has been a material change in the role or the conditions - whic there hasn't - you have no basis for an argument.

                So leave well alone until renewal, and meanwhile make yourself indispensible. Then look for a raise.
                There was no contract the day I started I didnt receive this until 2 weeks into the contract. I havent personally been paid, the umbrella compnay (which I havent signed up to) has the money. Also they have amended the contract and sent me a new on as of today the notice period.

                Please advise.

                Comment


                  #9
                  Originally posted by steveweaver View Post
                  Hi there

                  I recently secured a contract with an agency and accepted the daily rate via a job confirmation, however I have not as yet signed an official contract despite working at the client site for several weeks.
                  I want to re-negotiate but the agency will not offer any more , depsite the contract being advertised with different agencies at a 20% higher rate.
                  LOl. And you expected them to bend over and agree bearing in mind you are on site. Nice one. having a big pair of watevers is all very nice but having a professioal attitude and consider yourself as a business would have been a lot more useful to yourself and impressed the agent a little more than shouting alot when you don't have a leg to stand on.

                  If you were a window cleaner and you agreed a price with the customer and then did the work would you accept if the customer then wanted to pay you less after you have done the work? Of course you wouldn't. Look at it from the agents view and understand his situation. You can shout all you want but you are trying to give you money out of his own pocket he doesn't need to give you. Doesn't bode well for you does it.

                  You can threaten to leave and cause a tulipstorm if you want. You might actually get a raise but your reptuation will be screwed and you will be nothing more than a liability for the rest of the contract and beyond rather than a great resource.

                  IMO you have learnt a very valuable less, that is got to be worth the loss as you most definately won't do it again.

                  P.S. contractors getting upset when they have screwed up gives us all a bad name. The other contractors on site won't thank you if you do kick off.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    I have never shouted or ranted and raved, been calm and professional. Afterall Im in business and want a contract that favours me if I can.

                    Sorry if Ive given contractors a bad name, but thats how I feel.

                    Thanks again all for your brilliant advice.

                    Comment

                    Working...
                    X