Contract Agency Rate advice.

[M188225]

I recently received a contract variation from my current agency detailing a rate cut that has been passed on from a client. Having received this in writing, agreeing the rate and signing the renewed contract I thought everything was good.

Now, 3 months into the new contract I have been informed over the phone (not in writing), the contract rate was incorrect due to 'clerical' error and will be amended - with a further reduction applied. Not great - but prepared to accept a rate change going forward.

However, agency in question now want to back date the rate change and charge me for the mistake they made. I don't agree this is acceptable as I am 3 months into a 6 month signed variation to my original contractual agreement which had taken place so they have no basis to currently start charging me for their mistake. Do I have a right to refuse the back dated payments and do I have a case to consider this a breaking of the current contract which has an agreed rate printed on it and signed by both parties?

Im curious to know where I stand with this? An agreement was made, a rate change was agreed, now surely its not acceptable to demand more from me because they made an error in their mark up?

Kind Regards

[SarahL2012]

This is my personal opinion rather than that of anyone with legal training - but I would say stand your ground. You are accepting the rate cut going forward which is more than fair.

[BolshieBastard]

What does your contract say!? Does it say anything about 'errors and omissions excepted'? If so you'll likely have to swallow a genuine mistake.

If they'd underpaid you, would you be happy for them to turn around and say sorry M188225, we underpaid you but we're not giving you the right money?

Its not a good situation and you may be able to come to some arrangement with them about maybe paying half back as the money was received in good faith and now spent.

[northernladuk]

You tell them to **** right off and send them a copy of the rate with their signature on it. If they try and impose it retrospectively or cancel your contract you give them your solicitors address and remind them how much they will have to pay you in damages for the rest of the contract. Hopefully that will work.

That said if they are losing money on it they will understandably try and fight back but without doing something decidedly dodgy like breach contract or withhold your money there is not much they can legally do. A fairly ugly bun fight may ensue at that point so decisions may need to be made

Read your contract carefully for starters.

[northernladuk]

What does your contract say!? Does it say anything about 'errors and omissions excepted'? If so you'll likely have to swallow a genuine mistake.

If they'd underpaid you, would you be happy for them to turn around and say sorry M188225, we underpaid you but we're not giving you the right money?

Its not a good situation and you may be able to come to some arrangement with them about maybe paying half back as the money was received in good faith and now spent.

Sadly if it is indeed in your contract then this...

Keep us informed. Interesting one this.

[Boney M]

You tell them to **** right off and send them a copy of the rate with their signature on it. If they try and impose it retrospectively or cancel your contract you give them your solicitors address and remind them how much they will have to pay you in damages for the rest of the contract. Hopefully that will work.

That said if they are losing money on it they will understandably try and fight back but without doing something decidedly dodgy like breach contract or withhold your money there is not much they can legally do. A fairly ugly bun fight may ensue at that point so decisions may need to be made

Read your contract carefully for starters.

WHS

[GJABS]

What does your contract say!? Does it say anything about 'errors and omissions excepted'? If so you'll likely have to swallow a genuine mistake.

Clauses about errors and omissions usually only apply to unimportant issues/spelling errors - that sort of thing. I very much doubt a court would regard a mistake in something as important as the rate of pay to be something that can be retrospectively changed*

I assume what is in the contract was consistent with what was initially agreed verbally?


*Only the government can do that sort of thing. And they do!

[SlipTheJab]

You would think that they would triple check something as fundamental as the rate on the revised contract, it's their balls up so why should you pay for it, tell them to shove it.

[SlipTheJab]

You tell them to **** right off and send them a copy of the rate with their signature on it. If they try and impose it retrospectively or cancel your contract you give them your solicitors address and remind them how much they will have to pay you in damages for the rest of the contract. Hopefully that will work.

That said if they are losing money on it they will understandably try and fight back but without doing something decidedly dodgy like breach contract or withhold your money there is not much they can legally do. A fairly ugly bun fight may ensue at that point so decisions may need to be made

Read your contract carefully for starters.

Shocking news just in! NLUK takes the side of a contractor over an agency

[mudskipper]

Have you got access to a legal helpline? If so, give them a call.

But agree with the consensus - unless your contract allows for it, tell 'em to poke it.