Ooooo new contracts.....

[Sockpuppet]

Ha Ha.

The more I read this contract I laugh.

Clause 5.2. (not word for word)

The contractor agrees that agrees that if you work for the client or a company the client has introduced you to then the agency can charge the client 14 weeks fees.


Ok, I'll agree to that. The agency can charge the client 14 weeks fees if I work for a company I shouldn't do. Whether I agree to it is not the proble but whether the client agrees to it.

Tits.

[bullseye]

Ha Ha.

The more I read this contract I laugh.

Clause 5.2. (not word for word)

The contractor agrees that agrees that if you work for the client or a company the client has introduced you to then the agency can charge the client 14 weeks fees.


Ok, I'll agree to that. The agency can charge the client 14 weeks fees if I work for a company I shouldn't do. Whether I agree to it is not the proble but whether the client agrees to it.

Tits.

Cheers SP

[The Agents View]

Ha Ha.

The more I read this contract I laugh.

Clause 5.2. (not word for word)

The contractor agrees that agrees that if you work for the client or a company the client has introduced you to then the agency can charge the client 14 weeks fees.


Ok, I'll agree to that. The agency can charge the client 14 weeks fees if I work for a company I shouldn't do. Whether I agree to it is not the proble but whether the client agrees to it.

Tits.

SP - The client signs something similar - ours are 12 weeks - it's more of a deterrent than anything else, as if they wanted someone direct, ultimately we'd charge them a transfer fee that was mutually acceptable - the issue is when a client tries to go behind the agencies back and we subsequently find out - then it's off to court to argue about it - we work on this basis for every client, and tend not to take into consideration other business placed - whether or not that is suicidal is not my decision, but ultimately we tend to be a cut above the rest in terms of quality anyway, so we haven't really had many people try it. The one company that did, ended up paying about £200k + fees for 8 or 9 instances, settled in court - we still do business with them too.....

It's one of those clauses that doesn't need to be in the contractors paperwork, but can be included if their commercial director is a bit dim

[The Agents View]

"A 40% cut"?

If the client is paying £100 per day and the contractor gets £60, the agent is taking a 40% cut = a 40% margin = 66.7% markup =

If the client is paying £100 per day and the contractor gets £71.43, the agent is taking a 28.6% cut = a 28.6% margin = 40% markup = only

Bear in mind that it does come down to the amount of money involved too - for example.

a £200 charge rate for a small outfit might attract a 40% margin on the basis that there is a level of money that every business HAS to make - ours is actually around the £100 per day mark because we don't have droves of contractors (plus we tend to work on senior positions, so its rarely relevant). At £1000 per day, I'd be happy with 15% margin, because that brings in a fairly decent amount of money, and at that level the person is more likely to have hiring responsibility.

It depends on whether you use a generalist/high street agent, or whether you use a niche agency - where the costs are slightly higher, and the service isn't even comparable!

TAV