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Standard inflationary rises in day rates for freelancers? What's right + fair here?

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    #11
    The client doesn't care what your operating costs are (aka your bills). They care that they get value for money.

    Now, you could approach this like a permie and say "please sir, can I have some more, I worked late last week and don't forget that time I reminded you to buy your wife flowers for your anniversary".

    Or, you could think like a business and advise the client/agency that you're conducting an annual review of your charges and inform them that there will be a x% increase from the next renewal date. You set x% a little high and expect to be knocked back a little.

    What you absolutely can't expect is a nice, tidy, annual % increase (like a permie might get). If you want a rate increase, you have to ask for it and be prepared to explain why you deserve it (because, contrary to what I said above, clients think you're a permie but a cheap one without all the extra baggage).
    Last edited by ladymuck; 27 October 2017, 08:05.

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      #12
      Originally posted by mhuk2016 View Post
      Hi.

      Thanks for your reply - I am not sure what you mean by "small retainer". I don't think I would be able to quote for separate work packages as I need to be quite flexible on a daily basis.

      I am inclined to disagree with your first point though - what I really want to look at here are pay rises based on standard cost of living increases which we all face.

      Am I really that unreasonable for asking for this especially taking into account the fact that

      1. Inflation for the year is running at 3% which has mostly been driven by changes in the value of sterling
      2. The company that I work for continues to perform very well financially and the currencies that it bills in are mostly European - so it is earning way more GBP for the exact same reason that I raised in point 1 (change in the value of sterling)
      3. Reason 2 been taken into account everyone around me is indeed getting a pay raise.
      4. I know that there is nothing to say that an employer has to give you a cost of living pay rise each year, though you'll find that most do. Unless we are in the middle of a recession or the company is struggling I think that that's the fair thing to expect.

      In terms of delivering more than when I just started, I completely agree with you but I see this as separate to the cost of living pay rise - this is how it would work in performance reviews.... 2% standard rise for adequate performance and maybe 3% for exceeding expectations. In terms of value added here, there would be something here yes as I am so experienced now in everything although I don't think I can learn anymore so wouldn't expect much more than a cost of living pay rise in the future.
      If you don't understand the basis of delivering a business solution then I can't help. But see ladymuck's post above for a clearer explanation of the underlying logic. How you sell that to the client is up to you.

      Cost of living is your problem. If your client wants to keep using you (and vice versa) they have to pay the going rate and that's their problem. The two are not connected.
      Blog? What blog...?

      Comment


        #13
        Originally posted by mhuk2016 View Post
        Hi.

        1. Inflation for the year is running at 3% which has mostly been driven by changes in the value of sterling
        2. The company that I work for continues to perform very well financially and the currencies that it bills in are mostly European - so it is earning way more GBP for the exact same reason that I raised in point 1 (change in the value of sterling)
        It's also worth considering things "the other way round" though, i.e. if the Euro had tanked how would you feel about the client cutting your rate despite you having a contract agreement in place?

        Originally posted by mhuk2016 View Post
        4. I know that there is nothing to say that an employer has to give you a cost of living pay rise each year, though you'll find that most do. Unless we are in the middle of a recession or the company is struggling I think that that's the fair thing to expect.
        But unless I have misunderstood they're not actually your "employer" if you're contract or freelance, are they?

        Originally posted by mhuk2016 View Post
        In terms of delivering more than when I just started, I completely agree with you but I see this as separate to the cost of living pay rise - this is how it would work in performance reviews.... 2% standard rise for adequate performance and maybe 3% for exceeding expectations. In terms of value added here, there would be something here yes as I am so experienced now in everything although I don't think I can learn anymore so wouldn't expect much more than a cost of living pay rise in the future.
        All this is permie-talk though...as contractors we're being paid to deliver results not learn on the job, and typically at a higher rate than said permies - having said that nothing to stop you negotiating payment/rate increase based on results next renewal of course.

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          #14
          The difference between a permie and a contractor is that legally, not giving an annual cost of living pay rise to an employee is a pay cut with all the implications, i.e. they can be taken to court and are effectively in breach of contract by not giving a pay rise. As a contractor there are no legal obligations, which means it is up to you to negotiate a rate rise.
          Last edited by BlasterBates; 27 October 2017, 10:28.
          I'm alright Jack

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            #15
            Originally posted by BlasterBates View Post
            The difference between a permie and a contractor is that legally, not giving an annual cost of living pay rise to an employee is a pay cut with all the implications, i.e. they can be taken to court and are effectively in breach of contract by not giving a pay rise. As a contractor there are no legal obligations, which means it is up to you to negotiate a rate rise.
            That's complete bollocks.

            There are only two situations where an employer is legally obliged to give an employee a pay increase:
            1. If the employee is being paid national minimum wage and the amount goes up, or,
            2. It is explicitly stated in the employee contract that the employer gives wage increases in a certain period.

            If those don't apply, then like contractors, the employee is not entitled to a pay rise.

            Like a contractor, the employee can choose to find another company to work for.
            "You’re just a bad memory who doesn’t know when to go away" JR

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              #16
              All the above. The problem is you not understand what you are and the relationship between you and the agent.
              It all results in what I expect to be you having your pants well and truely pulled down by them for 5 years!
              'CUK forum personality of 2011 - Winner - Yes really!!!!

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                #17
                Originally posted by SueEllen View Post
                That's complete bollocks.

                There are only two situations where an employer is legally obliged to give an employee a pay increase:
                1. If the employee is being paid national minimum wage and the amount goes up, or,
                2. It is explicitly stated in the employee contract that the employer gives wage increases in a certain period.

                If those don't apply, then like contractors, the employee is not entitled to a pay rise.

                Like a contractor, the employee can choose to find another company to work for.
                Well OK if the employer does that to all employees or a substantial number of employees that would be legal but he can't single out individuals, that can be construed as constructive dismissal.
                I'm alright Jack

                Comment


                  #18
                  Originally posted by BlasterBates View Post
                  Well OK if the employer does that to all employees or a substantial number of employees that would be legal but he can't single out individuals, that can be construed as constructive dismissal.
                  That is not correct. At least in the UK. Are you thinking of another country?

                  Comment


                    #19
                    Originally posted by BrilloPad View Post
                    That is not correct. At least in the UK. Are you thinking of another country?
                    Admittedly with inflation at below 2% the case is somewhat weak but the criteria of demotion or a pay cut can be satisfied by not receiving a cost of living rise. It has to be seen within the context of your case, which obviously requires proving the motivation of the employer.

                    so sayeth my text book on Human Resources Management admittedly from a period when inflation was somewhat higher.

                    I'm alright Jack

                    Comment


                      #20
                      Originally posted by BlasterBates View Post
                      Admittedly with inflation at below 2% the case is somewhat weak but the criteria of demotion or a pay cut can be satisfied by not receiving a cost of living rise. It has to be seen within the context of your case, which obviously requires proving the motivation of the employer.

                      so sayeth my text book on Human Resources Management admittedly from a period when inflation was somewhat higher.

                      AFAIK there is no legal entitlement to cost of living rises in the UK except for the cases mentioned by SueEllen - there may be a case for discrimination e.g. if all the men were given a rise and all the women weren't, but that's way different from what we're talking about in the OP's case.

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