Agency ripping me off :(

**TheDude** · 14 April 2023, 09:18

Originally posted by minnow261 View Post

Hello

I have been contracting through Agency A for a client, it's almost 15 months now. Recently while chatting with fellow contractor in the team came to know that they have been paid £50 more than what I have been getting.

Don't know whether it is Agency or client who has taken cut. It is a significant amount for 15months.

I have another 3 months left on current extension. should i bite the bullet and wait before I confront the agency for rate hike?

Any inputs would be appreciated

TanQ

Why are you being ripped off?

What makes you think you should be on the same rate?

Why are you going to confront the agency - you signed the contract?

If you want a rate rise make sure you can justify it and be prepared to walk if they don't acquiesce.

I am not sure I would be risking being on the bench for £50 a day in the current market.

**WTFH** · 14 April 2023, 09:21

Originally posted by minnow261 View Post

Hello

I have been contracting through Agency A for a client, it's almost 15 months now. Recently while chatting with fellow contractor in the team came to know that they have been paid £50 more than what I have been getting.

Don't know whether it is Agency or client who has taken cut. It is a significant amount for 15months.

I have another 3 months left on current extension. should i bite the bullet and wait before I confront the agency for rate hike?

Any inputs would be appreciated

TanQ

Hello Minnow, welcome to the forum.

You say it's the agency ripping you off, or maybe it's the client, but you don't know.
Was the other contractor you spoke to identical to you in terms of experience, role, agency and timing?

If you're going to "confront" someone, then you need to be very careful.
Within your contract will be a clause about not discussing rates.
When you accepted the contract you were happy with the rate you agreed. You've worked there on that rate happily. It's only now that you have decided that you weren't happy.
If it were me, I'd bite the bullet and get a new role somewhere else, because no matter what you're not going to be happy there.

**minnow261** · 14 April 2023, 09:44

Originally posted by WTFH View Post

Hello Minnow, welcome to the forum.

You say it's the agency ripping you off, or maybe it's the client, but you don't know.
Was the other contractor you spoke to identical to you in terms of experience, role, agency and timing?

If you're going to "confront" someone, then you need to be very careful.
Within your contract will be a clause about not discussing rates.
When you accepted the contract you were happy with the rate you agreed. You've worked there on that rate happily. It's only now that you have decided that you weren't happy.
If it were me, I'd bite the bullet and get a new role somewhere else, because no matter what you're not going to be happy there.

Thank you.

The reason I feel unhappy about this is - We all in the same team, though I am in senior position.
So I feel, at least I should be on the same rate.

"confront" might not be right word I have used, I meant to discuss the situation with the Agency. But I don't know whether it was the agency or client.

Anyway, can't do anything about it now. As suggested, will bite the bullet for next couple of months and would ask for a rate hike at next renewal.

TanQ

**malvolio** · 14 April 2023, 10:09

Originally posted by minnow261 View Post

Thank you.

The reason I feel unhappy about this is - We all in the same team, though I am in senior position.
So I feel, at least I should be on the same rate.

No you shouldn't. You should be on the rate you signed up for originally unless you have had a significant change in role or added more value to the client than you were engaged to provide.

Worrying about rate is futile, especially other people's. I had a team not so long ago where I was on decent money but the other three were on £150 a day more than me. That wasn't because I was useless at negotiation or underpaid, it's because that was what they and I cost for our particular skills and experience. I hired them at that rate but I wasn't about to demand that I got more merely for being the guy in charge.

**northernladuk** · 14 April 2023, 10:17

Welcome to business. The agent has a need and a pot of money, they go out and find a supplier at a rate they want to pay that gives them maximum profit. The supplier (YOU) then has to negotiate the rate to a level you think they will pay and you are happy for. Contract is signed and you get on with it.

It's up to YOU to negotiate that rate. You signed it so you are stuck with it. No one is being ripped off. You didn't negotiate hard enough.
It's also possible the other contractors had a clue how to be a contractor and re-negotiated at renewal time and got that extra money. Fair play to them. You didn't so your fault.

You've got to think like a business, you didn't and have missed opportunities so are on a lower rate. You don't run your business as well as the other guys so you are being paid less so actually everything is exactly as it should be.

I'm sure someone will think I'm being a bit harsh saying you don't know how to run your business properly but...

Don't know whether it is Agency or client who has taken cut. It is a significant amount for 15months.

"confront" might not be right word I have used, I meant to discuss the situation with the Agency. But I don't know whether it was the agency or client.

You should. This is very basic stuff. This is your income and your customers. Any business that doesn't understand their customers and how the money flows isn't running their business properly.

Myself and everyone else that has already posted will know the above and we are just random bods on the internet that don't have a clue about your situation. The fact you can't is why you are in this postition.

**minnow261** · 14 April 2023, 10:23

Originally posted by northernladuk View Post

Welcome to business. The agent has a need and a pot of money, they go out and find a supplier at a rate they want to pay that gives them maximum profit. The supplier (YOU) then has to negotiate the rate to a level you think they will pay and you are happy for. Contract is signed and you get on with it.

It's up to YOU to negotiate that rate. You signed it so you are stuck with it. No one is being ripped off. You didn't negotiate hard enough.
It's also possible the other contractors had a clue how to be a contractor and re-negotiated at renewal time and got that extra money. Fair play to them. You didn't so your fault.

You've got to think like a business, you didn't and have missed opportunities so are on a lower rate. You don't run your business as well as the other guys so you are being paid less so actually everything is exactly as it should be.

I'm sure someone will think I'm being a bit harsh saying you don't know how to run your business properly but...

You should. This is very basic stuff. This is your income and your customers. Any business that doesn't understand their customers and how the money flows isn't running their business properly.

Myself and everyone else that has already posted will know the above and we are just random bods on the internet that don't have a clue about your situation. The fact you can't is why you are in this postition.

Fair comments!!
Moral of the story - Be ambitious, bargain hard!!! LOL!!

**northernladuk** · 14 April 2023, 10:23

On the money aspect. Remember that 50 quid is gross. Once it arrives in your pocket it's been taxed numberous times so the actual amount you are out of pocket becomes considerably less.

**ladymuck** · 14 April 2023, 10:59

Originally posted by malvolio View Post

No you shouldn't. You should be on the rate you signed up for originally unless you have had a significant change in role or added more value to the client than you were engaged to provide.

Worrying about rate is futile, especially other people's. I had a team not so long ago where I was on decent money but the other three were on £150 a day more than me. That wasn't because I was useless at negotiation or underpaid, it's because that was what they and I cost for our particular skills and experience. I hired them at that rate but I wasn't about to demand that I got more merely for being the guy in charge.

Reminds me of the time I turned down a job with Microsoft because I wanted a rate that was either equal to, or more than, the team lead. The reason they refused my rate was because the team lead couldn't possibly be on less than a team member. I said it wasn't my problem that they were rubbish at negotiation

**malvolio** · 14 April 2023, 11:19

Originally posted by ladymuck View Post

Reminds me of the time I turned down a job with Microsoft because I wanted a rate that was either equal to, or more than, the team lead. The reason they refused my rate was because the team lead couldn't possibly be on less than a team member. I said it wasn't my problem that they were rubbish at negotiation

In my defence I didn't know a project change meant I would need some serious technical people with DV clearance. They don't come cheap. And I was on quite a lot myself...

Agency ripping me off :(