Contract up For Renewal - Can I swap agencies?

[Fandango]

Hi

I'm hoping you might be able to offer a bit of advice.

I've just been offered a 6month extension on my current contract (which i guess i should count lucky with the way things are) however they have asked for a 10% drop in rate which although not the end of the world i'd like to avoid if possible

I spoke to the agency and asked if they'd take up this slack as i'm not really that happy with it but they've said they're already taking a hit as well as the rate has dropped blah blah blah my heart bleeds

Anyway the company i'm working for i'm sure uses a couple of different agencies for various contractors across the company. So would i be within my rights if i found out how much current agency is invoicing for me(pretty sure i can) and approach one of the other agencies and say look i have a 6month contract here for you worth X amount of pounds are you willing to take it?

I can't find anything in my contract that says this isn't allowed, unlike leaving the job and joining the company as a permie without paying them a finders fee or what ever they call it.

I can't see my company being bothered especially if they already deal with one of the other agencies. or if i find it is allowed i can just go back to my agency and screw them down even more.

Cheers

[The Lone Gunman]

If there is nothing in your contract with the agent (and I doubt that very much) then you are at liberty to do whatever you like.

The agent will have a contract with the client that may restrict the clients ability to use you if not through the agent.

Are you sure your contract does not have a clause something like: You will not work or perform services for the client in any manner other than through the agent.

If there is no clause then you can decline the agents offer, leave on the last day of the current deal and come back under a new agent (or direct) the following day.
Have you asked the client about dealing direct?

[BrilloPad]

I am amazed there is no clause in your contract stopping you from swapping agencies. If so, then you are free to move.

If there is a clause then its difficult. If the client uses alot of contractors with the agency then they might put pressure on them. It has happened at clientco : but its very rare and the agency has to be particularly bad.

[Fandango]

Thanks for the replies

I've had another scour of the contract this morning and you were right there is actually a 6 month clause in it

Just going to have to argue my case to the parasitic agent instead then this morning

Cheers

[vlc]

"parasitic agent"
Cheers

How do you know they are 'parasitic'? Have you found-out their fee/margin?
I know by first-hand experience that some are very greedy, but not all.

[lightng]

Thanks for the replies

I've had another scour of the contract this morning and you were right there is actually a 6 month clause in it

Just going to have to argue my case to the parasitic agent instead then this morning

Cheers

Is there any other kind?

[ib4969]

I would try one of the following...but only after getting the agent to go Open book with you (tell them you can easily find out what there rates are anyway) and ascertaining they are truely parasitic and not symbiotic

1. Ask to share the drop with the Agent

2. Ask your client to apply a bit of pressure....ie get them to tell agent "we dont want to lose him etc etc" (depends on your relationship with client)

3. Play hardball...(if you think you are in a strong position with your client) and tell the agent they have to take the hit otherwise you are off.

You won't be able to switch agencies irrespective of what your contract says...its the contract the agency has with your client that counts more...you will usually have a non-solicitation clause in any case...but so will the client and most clients do not want the hassle of legal ranglings with an agency just for the sake of 1 person

Hope it helps. I do speak with a little knowledge as well...I ran/owned a multi-million pound IT services organisation for 10 years and employed contractors and permies....and dealt with some nightmarish bloody corporates who just wanted something for nothing!

[Fandango]

Cheers for the reply ib4969

I've not spoken with the agent yet as my boss was out today and i'm on very good terms with him so i'm going to have a chat with him before speaking to the agent.

Considering i've negotiated the past 4 extensions myself the agency really is getting money for bugger all so they can definitely take most if not all of the hit. I'm hoping that telling the agency we know what they're charging (and we can find out) and that they can easily absorb the 10 decrease especially considering they have done nothing to secure recent renewals that they should be taking the hit.

Anyway i'll keep you posted as to what the outcome is

[The Lone Gunman]

Now you need to tell us if you are opted in or out of the conduct of employment agents regs.
If you are opted in then that clause is void. The regs state the tie in period for the opted in. You may also find that with a decent lawyer you could claim the contract to be void though this would be rare.
It would then depend if the client were willing to wait 8 - 12 weeks for you to come back.

As ever, it is your decision. If you do not like the pay cut then be willing to walk. If you need the income and are not sure of your prospects then take the hit.


FWIW I believe most companies are using the downturn as an excuse to put pressure on rates. Most of these companies are still reporting record profits.

[vinny41]

Cheers for the reply ib4969

I've not spoken with the agent yet as my boss was out today and i'm on very good terms with him so i'm going to have a chat with him before speaking to the agent.

Considering i've negotiated the past 4 extensions myself the agency really is getting money for bugger all so they can definitely take most if not all of the hit. I'm hoping that telling the agency we know what they're charging (and we can find out) and that they can easily absorb the 10 decrease especially considering they have done nothing to secure recent renewals that they should be taking the hit.

Anyway i'll keep you posted as to what the outcome is

I would advise caution, If you start telling the agency you know what they are charging and that youi can find out might be bad news for both you and your Boss as that more than likely to be a breach of contract

Remember you have a contract with the agency the company that you are currently working for also has a contract with the agency as T&C of your contract will be different to the T&C of the company you are currently working for.
You also need to look at the bigger picture if you are the only person working for that company through this agency, agency might take it on chin and let you move however if they have 10+ they are less likely to take it on the chin.

Finally you need to consider can your agency withdraw your services with/without your consent as they might go down that route - you have to remember they not going to lose anything since you are planning to switch agencies.