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Agency Lies

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    Agency Lies

    A while back, I had an interview for my current ClientCo; got the job, and was offered a good rate. I arranged with the agency to work from home, saying I would be willing to drop the rate if it got me the job (as working at home was the only way I could take the contract). They subsequently sent me a contract with a lower rate than initially offered, without any explanation, so I asked about it in clear terms, and asked about their commission rates. They said they were on a fixed percentage with the client (lower than average), the client had considered the rate reduction, and that this was the new figure. Great, I thought - that's good enough for me. I signed and off I went.

    Today I found out that they were lying. The client did not sign off the rate reduction (they expected me to be on the full rate initially quoted), and they're livid about it. This whole thing kicked off because current ClientCo sent all contractors an email asking me if everything was alright with the agency (and if they needed to jump on them for any reason), which prompted another contractor to question something the agency had done... which made me mention the rate reduction to ClientCo, just in passing.

    I know agencies lie, the rate I'm on is fine, and I'm happy with everything in the contract... but that's not the point... ClientCo are probably going to raise this with the agency, and I'm not entirely sure what they'll say to them yet - it may mean the end of a very lucrative contract for me, and an inability to work for them via another agency or direct?

    I'm considering raising an invoice for the days I've already worked x the rate reduction, and continue to invoice them at the originally quoted rate. There has to be some kind of contract breach here, even if it's at the client's side? I'm waiting to hear if the client has the commission percentage in writing before I act on anything.

    One thing to note - I signed an NDA that specifically says I can't talk to the client about rate etc. I'm hoping that's another agency "trick" to scare people... and can be safely ignored.

    #2
    I actually agree with your sentiment, that this could cause you more problems than it solves.

    Never reduce your rate with the agency always push for the best rate you can get and all your conditions.

    You can´t just switch agencies so if the client throws the agency out you´re in bother.

    Basically however unpalatable it is the agency is probably operating within their rights and as long as they´re paying you on time there´s nothing you can do about it, other than to push for a rate rise at renewal tme. Obviously you can point to being misled verbally on their contract with the client, but unless this is part of your contract I don´t see that it is relevant really. That would be like suing you if you told them you had an interview when you didn´t. It´s a weak point.

    I would talk to the client and make sure that your complaint is anonymous.
    Last edited by BlasterBates; 26 April 2013, 10:20.
    I'm alright Jack

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      #3
      I know it's a B2B relationship, I didn't say otherwise

      The fact is, that they have lied to both me and my client - if the client has their percentage commission in writing, surely they're breaching contract? I do understand, however, that they're not breaching contract with me... just the client. As I said, I'm happy with everything as it stands... obviously I'm a bit peeved, but I can deal with it.

      I have emails from the agency stating their commission rates, and also saying that the client specifically asked for this rate reduction because I asked to work from home. The client says that this is 100% a lie. I have a good relationship with the client, there's no reason for them to mislead me... and they're more likely to do something about it than I am... though I am very tempted to pull them up about lying to me.

      I understand what you're saying about renewal... but this is a 12 month contract - and I'm only 4 months in. The client is not happy, and won't be happy paying a much higher percentage than they had negotiated with the agency.

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        #4
        Your NDA says you can't talk to the client about rate, fair enough. What does it say about discussing margins?

        Also, it's amazing how often clients (and contractors) leave paperwork of a financial nature just lying around by the photocopier
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          #5
          Originally posted by Zippy View Post
          Your NDA says you can't talk to the client about rate, fair enough. What does it say about discussing margins?

          Also, it's amazing how often clients (and contractors) leave paperwork of a financial nature just lying around by the photocopier
          It says "Confidential information includes without limitation, any trade secrets or proprietary information concerning <ClientCo> or <Agency>, business plans, Client(s), location or any other contractual information including Rate between the Consultatnt(s) and the Company"

          Comment


            #6
            Sounds like you have been stitched up by a greedy agent. They saw they could get you for lower rate and thought they'd keep the difference for themselves.

            If they agreed a fixed rate with client and have now been found out then thats their problem now. Id be annoyed too but nothing you can about it now and its really none of your business.

            Pity the client knows because if theyre paying full rate, now that you know you'd have massive leverage to get a huge increase off agency at renewal. The fact that its 12 moinths is a problem though.

            Only thing is chances are now that client knows they can get you for X plus agency standard cut rather they're just going to try to cut what they pay the agency surely? If they;re paying 500 now and youre getting 250, they know you'll take 250. They'll just tell agency its 300 total now maybe.

            They're not going to say poor old contractor, bad agency taking their money, give them more of it and we'll pay the same anyway are they?
            Rhyddid i lofnod psychocandy!!!!

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              #7
              I think I'm more upset that they lured me in than anything else - they have genuinely been a fantastic agency so far.

              I felt a bit weird about the rate reduction at the time - the client didn't seem bothered about me working at home in the slightest... which I mentioned to the agency, though they were adamant.

              Comment


                #8
                Originally posted by psychocandy View Post
                Sounds like you have been stitched up by a greedy agent. They saw they could get you for lower rate and thought they'd keep the difference for themselves.

                If they agreed a fixed rate with client and have now been found out then thats their problem now. Id be annoyed too but nothing you can about it now and its really none of your business.

                Pity the client knows because if theyre paying full rate, now that you know you'd have massive leverage to get a huge increase off agency at renewal. The fact that its 12 moinths is a problem though.

                Only thing is chances are now that client knows they can get you for X plus agency standard cut rather they're just going to try to cut what they pay the agency surely? If they;re paying 500 now and youre getting 250, they know you'll take 250. They'll just tell agency its 300 total now maybe.

                They're not going to say poor old contractor, bad agency taking their money, give them more of it and we'll pay the same anyway are they?
                The client is perfectly happy with paying me the full rate - guaranteed. They're not quite your typical client... I got a friend a contract there too, and they upped his requested rate by quite a bit just because they wanted to make sure he stayed for the duration.

                The actual rate I'm losing per day is pretty small... but it adds up. It's less than £20 per day difference, but that's not the point The point is that this might end my relationship with ClientCo abruptly... and I really don't want it to

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                  #9
                  How long you been at client or aint you started?

                  If you havent started I wouldnt be 100% surprised if they know nothing about this WFH idea....

                  I had a similar years ago. Agency told me 2 weeks in Northampton then rest of contract near home. So I signed up.

                  Of course, turned up first day and client knew nothing about this - it was all in northampton. Lets just say I was back home in hours.....
                  Rhyddid i lofnod psychocandy!!!!

                  Comment


                    #10
                    Invoice at the rate you agreed and is in your contract. The contract between the client and the agent is none of your business. Provide feedback to the client as requested and then leave it at that. Nothing good will come of you trying to fight the agent at this point.

                    He lied (about something that isn't really your business anyway) people do, it appears to be coming and biting him hard so will be an expensive lesson in the long run but it does not constitute contract breach. You signed it so bill it.

                    I wouldn't get too involved. Let the client and the agent dook it out, you stick to your contract and screw him hard at renewal. If other guys are fighting as well let them do it and just reap their rewards but not get involved in any fall out that might come their way IMO.

                    If the client needs you none of this should affect your position unless you become a problem to both client and agent. No one is irreplaceable.
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