Extension -- getting rid of the agent

[aj1977]

Nope otherwise the client wouldn't be trying to go direct with your ltd.

Oh and on your opt out, did you opt out before the interview or after?

I think it was after...though i think it was verbal!!

[aj1977]

As much as agents can be greedy swines and not exactly the most popular group of people on this board (perhaps second in the despicable league only to politicians) I must ask why are you desperate to get away from them? Is it purely for the rate increase? Don't forget that most agencies provide more convenient and regular payment schedules than clients and are taking on an element of risk that they will pay you but the client might not.

As Brillopad said, they did place you in the job in the first place, but understand that the same margin should not hold for an extension, since the extra work involved for them is minimal. In light of the restriction on your current contract and potential problems it may cause can you not just negotiate with the agency to cut their margin? OK they are not going to cut it to 0% but perhaps your client can up the rate to meet the take home you want.

Fair point..but i think 25% agency cut for doing almotst nothing is not something i can put up with

[tim123]

I am not caught by IR35.I doubt very much that the agency will mess with the client as they are in their PSL and don't want to jeopardize their potential future business prospects...

How the **** did they get on a PSL charging 20%?

tim

[aj1977]

Provided you didn't sign anything that presumes that you can't. Unfortunately, most EBs have wised up to this now. So If you've signed away this right to go direct with the client (and the chances are you have) then the client is still legally obliged to pay the EB a one off transfer fee or a continued mark up for the duration of the restriction period.

You're right about the reasonableness of the restriction clause though. Anything over a year is unreasonable. Six months is acceptable. Up to a year may be result in a court battle if the client and EB wish to make an issue of it. A transfer fee is normally the way most would sort this out.

Agreed.But what i am failing to understand from responses so far to my question is how will the agency come to know at all that I have gone direct with the client...unless either me/client or other contractors squeal...

[aj1977]

How the **** did they get on a PSL charging 20%?

tim

How much do u think is the normal % for a PS??

[tim123]

Provided you didn't sign anything that presumes that you can't. Unfortunately, most EBs have wised up to this now. So If you've signed away this right to go direct with the client (and the chances are you have) then the client is still legally obliged to pay the EB a one off transfer fee

Not if you've opted in (yes, technically "not opted out") they can't.

What is it that you don't understand about such clauses being void and being replaced by the statutory ones (in both contracts)?

or a continued mark up for the duration of the restriction period.

only up to 14 weeks.

tim

[tim123]

How much do u think is the normal % for a PS??

I've heard of 7%. But I think that's at the low end. 20% is normally much too high.

tim

[Pondlife]

Agreed.But what i am failing to understand from responses so far to my question is how will the agency come to know at all that I have gone direct with the client...unless either me/client or other contractors squeal...

If they have a vague suspicion, they phone up reception and ask to be put through to you and you answer the phone.

They may well get suspicious when they know you've been offered a renewal and apparently didn't take it but when asked, do not want to be put forward for anymore roles.(Yes, I know you could say you've found work elsewhere etc)

[oracleslave]

If they have a vague suspicion, they phone up reception and ask to be put through to you and you answer the phone.

They may well get suspicious when they know you've been offered a renewal and apparently didn't take it but when asked, do not want to be put forward for anymore roles.(Yes, I know you could say you've found work elsewhere etc)

Are you suggesting agents are devious? How very dare you!

[Ardesco]

Agreed.But what i am failing to understand from responses so far to my question is how will the agency come to know at all that I have gone direct with the client...unless either me/client or other contractors squeal...

They put others contractors into the building who tell them (could come up in conversation in an innocent way, agent may ask other contractor who says yes without realising it's a prolem, etc). Agent may come into the building tho smooze with management and se you sitting at a desk when they do, they could phone up other people in the company they know and ask them. Hundreds of ways.

At the end of the day I would be very surprised if the client will back you and want to keep you on if the agency finds out and the tulip hits the fan. Companies don't want to be involved in lengthy and expensive legal battles for a contractor they can kick out of the door on Friday and have another one in doing the ame job on Monday.

If the agency is on the clients PSL the client already knows what they are paying you, and what they are paying the agent. If they want to reduce the agents cut they need to re-negotiate the PSL (quite easily done, clients do it all the time), or if they want to increase the rate they just pay the agent his extra too.

Are you sure the company will keep you on and let you go direct, or have you just had <insert random line manager who thinks he can save some money to make his budget look better here> tell you it will be all fine honest guvnor? I would suspect you are being lead up the path by some manager who doesn't understand the complications and will be given a swift talking to by HR when they find out what's going on and kick you out of the door.