Agency payment "correction"

[BHicks]

Hi folks,

Currently in a gig with a daily rate, typical day is 8 working hours and strictly Monday to Friday.

At some point in November, I had a couple of hours out one particular day (by mutual prior agreement with client) and ensured that it was correctly recorded on their timesheet system (showed 5 hours worked). Every week I send in a copy of my timesheet to the agency along with the invoice.

Earlier in the week, I received an email from the agency payment dept advising that they wanted to apply a "correction". The client had advised the agency that as I'd worked only 5 hours, their policy was to pro-rata anything anything under 6 hours. By Pro-Rata, they mean assume a 9 hour working day and go from their, eg: 5/9 * daily rate. The agency in turn are looking to recover the shortfall by means of a reduction in a future invoice.

Now, having re-checked the contract & accompanying schedule, I note that there is absolutely no mention of pro-rata payments in there. In which case, my initial reaction would be that if it's not there, the agency can do one as they have nothing (contractually) with my company to rely on for this "correction". If anything, it's their problem for not ensuring the payment details were back to back with their contract with client co.

I will be taking up professional advice on the matter but wondered if anybody had been in a similar situation and if so, what was the outcome?

[Eirikur]

So what's your problem? that hey do 5/9 in stead of 5/8? in that case probably not worth fighting over
or is it that they pay pro rata in stead of an entire day, which is normal practice. If I take a few hours off, I book less hours, that's the way it works and they may try to get you for fraud if you booked a whole day.

[SueEllen]

Tell the agency in writing that according to contract/schedule clause XXX that a working day is 8 hours and that you will not accept the deduction of one hour.

If they do deduct it then tell them in writing that you will take action to get the money back. If you sent any letters use recorded delivery. You have 6 years in which to do so.

[BHicks]

Hmm, the actual question here is whether the agency is entitled to pro-rata any payments to my company given that the contract & schedule have no provisions for doing so.

My position would be that for any day where my company provides services, the daily rate is payable. If they wanted something else they should either have made it hourly, or added a pro-rata clause (which have been in place for plenty of other previous contracts through different agencies).

Lets turn it round for a second, picture the response from the agency were I to submit an invoice for an amount exceeding my daily rate because I'd worked 12 hours in a day rather than 8?

[SueEllen]

It's up to you how you deal with this.

If there is no provision for a pro-rata rate then you can refuse to accept it citing the contract. However as the agency I would find a reason to terminate you, get evidence and do so. Though you would be paid fully for that day.

If you are happy to be paid pro-rata on an 8 hour day. I would cite the provision in the contract, point out I was being reasonable and then chase for the correct payment.

In regards to 12 hour days I make it clear to clients in advance if I agree to be flexible they must be. As soon as they aren't I hand in notice or do not extend contracts. I've only had to do this once.

[clearedforlanding]

Are you on a PWD? Is it cited in you contract? Did you average 40 hours per week in that month?

If yes to all the above, put it in writing to agency & state that you do not accept any "correction".

[SlipTheJab]

Regardless of the agency your client sounds like a right penny pinching Scrooge,I find that it all evens out in the long run, some weeks I work more than my contracted hours, some less, flexibility on both sides is worth more than counting every penny IMO.

[Boney M]

Regardless of the agency your client sounds like a right penny pinching Scrooge,I find that it all evens out in the long run, some weeks I work more than my contracted hours, some less, flexibility on both sides is worth more than counting every penny IMO.

Exactly this, infact I done 4 hours extra this week and i am on a day rate, it was to help cover the early shift for BAU as they had two people off. I havent claimed it and wont but am sure they will remember things like this which they inevitably do come renewal time in a couple of weeks.

[mudskipper]

Are you on a PWD? Is it cited in you contract? Did you average 40 hours per week in that month?

If yes to all the above, put it in writing to agency & state that you do not accept any "correction".

This. What does your contract say about working hours?

[FrontEnder]

Exactly this, infact I done 4 hours extra this week and i am on a day rate, it was to help cover the early shift for BAU as they had two people off. I havent claimed it and wont but am sure they will remember things like this which they inevitably do come renewal time in a couple of weeks.

Whoa whoa whoa.

You're doing extra hours to cover work that is outside of the project you're contracted to work on?

This sounds really bad for IR35.