Rate cut - how to deal?

**Lewis** · 13 February 2009, 09:24

Originally posted by Joe Bloque View Post

I've did my bit of searching on the fora how other people dealt with this. But want to get some opinion before i start talking to the agent.

My contract was renewed mid-Jan for a 4 weeks and now from mid-Feb to end-March. Not sure if it will go further than that. For this second extension agent produced email from HR department of client saying.

"Mr Bloque should accept 10% pay cut and his pay rate will be £300/day. Please confirm his acceptance"

My questions.

Can the client decide what *final* day rate i should receive?. Surely its client bother how much he should pay for contractors of my skills.

How much i get *paid* is between me and my agent - why clients should bother about my daily pay i get from agent?

I'm about to ask my manager whats the real story.

why client did not implement the rate cut for my first extension ?- why immediately before second extension which was only 4 weeks after the first one - out of interest i ask.

Is agent taking the p1ss?.

Considering the market i can suck it up and take the rate cut. But dont want to bend over when it may not be the real case.

Any tips to hold on to my original rate if i get to know agent playing tricks?

Thanks in advance
Joe

It is common for clients to agree the agency fee which has the effect of setting your rate. This has been the case in most places I have worked, so yes they can indirectly set your rate from the agent.

They are free to reduce what they want to pay at any time (subject to contracted notice period) and you are free to walk whenever you want (subject to contracted notice period).

None of this sounds remotely out of the ordinary to me.

**Torran** · 13 February 2009, 09:28

I would have thought some justification would be forthcoming from HR. Have you asked why the rate is being cut?

This present client is rolling out rate cuts as it does every few years but at least they have been upfront about it.

**swamp** · 13 February 2009, 10:35

Sounds like it could be agent BS.

Any rate cut should be communicated to you by the client. My advice would be to talk to them. Also try and get the agent to absorb part of any cut into their margin.

**Svalbaard** · 13 February 2009, 10:44

Originally posted by swamp View Post

Sounds like it could be agent BS.

Any rate cut should be communicated to you by the client. My advice would be to talk to them. Also try and get the agent to absorb part of any cut into their margin.

Agree.

Alternatively, you could refuse to take the cut and see what happens. If they ask you to leave - leave. Show them you won't be f****d with and get another contract.

**rpgpgmr1** · 13 February 2009, 10:50

Erm am I missing something here ? You - presumably - are not an Employee of the Client and therefore do not get "Pay" .
You have a commercial contract with a Company (Agent), unrelated to the Client , for which you invoice your fees .
If the AGENTs Client wishes to reduce their financial arrangement thats a commercial agreement between Agent and Client. Obviously the Agent will attempt to pass it all on to you - thats if the rate cut even exists.
Among your choices are :
accept everything agent says and roll over
suggest Agent reduces his commision and takes the hit / some of the hit
say no and see what happens
Ultimately its a commercial decision affecting revenue income for your Company , balanced against current economic climate , and potential for repeat work.
In addition a letter from HR saying Mr X must accept a reduction in his pay - surely smacks of an employment pointer ? In the hopefully unlikley event of the Agent not paying invoices , would end Client pay instead ? I think we know the answer to that..............

**expat** · 13 February 2009, 11:51

The client may impose a condition on the agent, such as your pay rate or the amount of snow that falls next Tuesday. That's between the client and the agent.
If the agent wants to impose it on you, that is between the agent and you. You are not obliged to accept any imposition just because the agent has accepted it.

Of course you may be obliged to accept the bench instead.

The other side of this coin is that the client is effectively restricting the agent's cut, and is probably doing you a favour there, since they will probably restrict it more, and with more clout, than you will be able to.

**ratewhore** · 13 February 2009, 12:05

Originally posted by swamp View Post

Any rate cut should be communicated to you by the client.

Rubbish.

Originally posted by swamp View Post

Also try and get the agent to absorb part of any cut into their margin.

WHS

**Recruitment Agent** · 13 February 2009, 12:17

One of my contractors that I Have onsite at Barclays was forced a rate cut he was the only person in the department that can do what he can do some how he negotited himself a rate increase as he threatend to walk of site ..

**ratewhore** · 13 February 2009, 12:22

Originally posted by Recruitment Agent View Post

One of my contractors that I Have onsite at Barclays was forced a rate cut he was the only person in the department that can do what he can do some how he negotited himself a rate increase as he threatend to walk of site ..

Jesus - spelling and grammar!!!

Rate cut - how to deal?