Public sector client lowering rate after 6 months (contract signed - agency shafted)

**BolshieBastard** · 23 April 2013, 12:38

Originally posted by Jog On View Post

Anyone else in the public sector having problems getting timesheets approved due to on the fly rate changes?

I'm hearing that the agency margin for my gig has been slashed by 10% apparently because I've been here over 6 months. In my last extension my rate hasn't changed so doesn't directly affect me, but can't help feel bad for the agent.

I'm being told that the reasoning is that as contractors we get paid more due to the risk and temporary nature of our assignments, however if we stay somewhere after 6 months that's not really the case now is it...

So public sector client get's temporary resource to deliver temporary project and after 6 months get's to decide they don't want want to pay as much anymore. All while I sit here watching a stack of shiny new ipads being delivered to be given out to the permies who roll in at 10, maybe put in a hour or 2 of productive work then head for the door at 4...

Doesn't affect me directly yet, but if I was an agent I'd be very urinated off...

Anyone else seen this yet? It's quite a new "decision" apparently.

I dont understand how the agency margin being cut is your problem and how that can have any impact getting your timesheet signed.

Are the agency trying to pass the cut on to you?

As with all these things, your option is to swallow it or not. Myself, I wouldnt touch the public sector now because of stuff like this and the 'off payroll' nonsense.

**Jog On** · 23 April 2013, 12:42

Originally posted by BolshieBastard View Post

I dont understand how the agency margin being cut is your problem and how that can have any impact getting your timesheet signed.

Are the agency trying to pass the cut on to you?

As with all these things, your option is to swallow it or not. Myself, I wouldnt touch the public sector now because of stuff like this and the 'off payroll' nonsense.

It's not my problem, apart from my timesheets not being signed because there are bun fights behind the scenes. Agent did hint that "my rate has been cut" to which I forwarded on my signed contract to them stating "not according to this it hasn't"... I'm not swallowing anything. That being said I get on well with this agent and genuinely feel bad for them.

Was only a 3 week extension anyway and I'm out of here on Friday never to come back to the public sector.

This is just a heads up more than anything for some of our esteemed agent friends who frequent this board. Also anyone in the public sector with an extension coming up that will take them over 6 months...

**LisaContractorUmbrella** · 23 April 2013, 13:47

Originally posted by Jog On View Post

It's not my problem, apart from my timesheets not being signed because there are bun fights behind the scenes. Agent did hint that "my rate has been cut" to which I forwarded on my signed contract to them stating "not according to this it hasn't"... I'm not swallowing anything. That being said I get on well with this agent and genuinely feel bad for them.

Was only a 3 week extension anyway and I'm out of here on Friday never to come back to the public sector.

This is just a heads up more than anything for some of our esteemed agent friends who frequent this board. Also anyone in the public sector with an extension coming up that will take them over 6 months...

Presumably this is something to do with the new rules surrounding 'off payroll' in the public sector - has the agency/client approached you about IR35 status?? Maybe that's the hold up on the timesheets

**bstar1** · 23 April 2013, 16:19

Public Sector Worker

As a public sector "contractor" , .....been here over a year and a half no probs with pay...life style choice for them "permies"and an absolute essential to employ contractors...after all...who's gonna do the work.

**Wanderer** · 23 April 2013, 20:29

Originally posted by Jog On View Post

It's not my problem, apart from my timesheets not being signed because there are bun fights behind the scenes. Agent did hint that "my rate has been cut" to which I forwarded on my signed contract to them stating "not according to this it hasn't"... I'm not swallowing anything. That being said I get on well with this agent and genuinely feel bad for them.

Don't feel bad for them - they will have been minting it out of you so far.

If the client refuse to sign the timesheets then I would invoice the agency as normal along with a copy of the unsigned time sheet saying that the client is refusing to sign it, however the work was actually done and therefore the invoice is still payable. Tell them you will forward the signed timesheets as soon as the client signs them and perhaps they could approach the client to find out what the difficulty is.

**Apox21** · 23 April 2013, 20:43

In public sector contracts going via frameworks such as the Cipher contract i.e. through Capita they do have their margin changed on extensions due to the SLAs in place. Rates vary but multi-source recruitment (i.e. lots of candidates interviewing etc.) their markup is approx 10% more than sole-source recruitment (i.e. extensions) due to Capita (or whoever) not having to go through as much process as when recruiting from scratch. This is effectively a saving for the PS from the Capita markup, the agencies who placed you rate should not change (unless it is Capita) so your rate should not change.

**bracken** · 24 April 2013, 06:52

It may be a budget thing...

May not be the cause of your problem but all contracts where I am finished 31 March but the budget from 1 April not approved so no renewals could be issued by Capita...some contractors continued to work 'at their risk' but then moaned as there was no time sheet on the system to be authorised but others (like me) stayed off until the renewal was issued (which has just happened).

**psychocandy** · 24 April 2013, 11:32

Originally posted by bracken View Post

May not be the cause of your problem but all contracts where I am finished 31 March but the budget from 1 April not approved so no renewals could be issued by Capita...some contractors continued to work 'at their risk' but then moaned as there was no time sheet on the system to be authorised but others (like me) stayed off until the renewal was issued (which has just happened).

Never ceases to amaze me when clients seem to think contractors should keep working whilst they get their act together. Not cool to work at risk like this..... Got no idea why clients think they're own internal processes/problems are of any interest.

Its like going into tesco filling up your trolley, then trying to get them to give you the stuff for free whilst you decide if you want to pay or not in a few weeks time.

Too many clients trying to shaft contractors like this at the moment and think they can keep them on leash by throwing them crumbs from the table like this. Of course, too many contractors agreeing to it.

**Jog On** · 28 May 2013, 13:37

Update on this.

They have apparently also decided that my payment terms have gone from 30 to 48 days...

I really could do without what I think I'm going to have to get into.

FFS - why can't people just fly straight?

Public sector client lowering rate after 6 months (contract signed - agency shafted)