Finders fee witheld from daily rate

**tractor** · 17 September 2014, 07:59

..

Originally posted by Eirikur View Post

Got an offer on the table, after 5 interviews and 3 weeks with this end client
Agency introduced me, but my contract is directly with end customer. The whole process was very amateurish, so I expected the contract to be a total fail IR35 wise
Last night I received the contract from client co, surprisingly it looks good re IR 35, better than what I received from most agencies, clear statement of work etc, BUT it mentioned the agreed rate minus 10% per day finders fee for the agency.
No one, neither agency nor clientco had mentioned this before, needless to say I'm not going to accept this, but has anyone been in a situation before where you had to pay the agency in stead of the end client paying the agency.

If you are not opted out, Regulation 13 of the Conduct Regs applies. Unfortunately, the Regs only apply to the agent, not the client.

I suspect you will only get satisfaction by negotiating with the Client, in which case it is a business decision whether to accept or not.

Obviously, you need some way to calculate the fee and you don't say how long the contract is. If it's 3 mths on £500 before the adjustment, that makes a fee of £3250. If it's 12 months, that is £13k. Sounds like a very, very bad deal to me. I would have a word with the agent about their fee and see if you can get some kind of time limit on it so that it does not affect any extensions and also get it reduced.

**Sausage Surprise** · 17 September 2014, 08:28

Sounds very dodgy to me. What does the client know of them? Are they on a PSL and is this their normal way of conducting business?

**javadude** · 17 September 2014, 08:33

Originally posted by tractor View Post

I would have a word with the agent about their fee and see if you can get some kind of time limit on it so that it does not affect any extensions and also get it reduced.

My current contract is direct with the client but was introduced via an agent. I think the finders fee was a one off payment by the client to the agent. I don't know how normal that is but it seemed fairer than your situation. You were obviously misled by the agent but there's probably not much you can do apart from try to negotiate it down or walk.

**jmo21** · 17 September 2014, 08:43

That's not how finders fees work, and the agent may not even know the client are trying to pass this on to you.

5 interviews, already feeling it's amateurish AND an immediate 10% rate cut before you are even on site?

I'm out.

**cojak** · 17 September 2014, 08:45

This is illegal and can result in a fine of £400 for the agency (if they are based in the UK, obv...)

(I'll look for the legislation to back this statement up - I've got it somewhere...)

**cojak** · 17 September 2014, 08:49

Here's the original thread:

http://forums.contractoruk.com/accou...king-jobs.html

**tractor** · 17 September 2014, 08:55

...

Remember guys, in the original post, the Client has supplied the contract and it is direct between client and OP Co. The agent may not even know anything about it.

**Eirikur** · 17 September 2014, 09:12

Initial contract is for 4 months
Just spoke to the agency, they pretend they didn't know.

Replied to client co that my rate is the rate originally discussed and anything less will be rejected,also my Ltd co will stay out of any agreements between agency and clientco.

Got 3 interviews planned for tomorrow, I just hope I can walk away from this one

**SussexSeagull** · 17 September 2014, 15:56

Must confess that unless it was a choice between doing that contract or selling a kidney, I would decline in a very unprofessional manner.

Finders fee witheld from daily rate