Amended contract

[ogreboy]

I am having issues....

The agency has issued a new contract at renewal time. The clause I am having a problem with has changed from:-

"Upon completion of the Assignment or as may be agreed and specified in the
Schedule attached or at the end of each month of the Assignment the Supplier shall deliver to the Company its invoice for the amount due from the Company to the Supplier giving a detailed breakdown showing the work performed and the time spent by the Supplier. The Company shall pay the Supplier each month for all hours worked regardless of whether the Company has received payment from the Client for those hours. The invoice must be received by the Company by no later than the 7th calendar day of the month following the month to which it relates. The Supplier s invoice should bear the Supplier's name, company registration number, VAT number and should state any VAT due on the invoice."

... to this...

"Upon completion of the Assignment or as may be agreed and specified in
the Schedule attached or at the end of each month of the Assignment or
Assignment period specified by the Company and following such approval
processes as may be specified by the Company or Client from time to
time the Supplier shall deliver to the Company its invoice for the amount
due from the Company to the Supplier giving a detailed breakdown
showing the work performed. Invoices shall be subject to approval
procedures by the Company notified to the Supplier from to time. The
Company shall pay the Supplier each month for all hours worked if
Company has received notification from the Client that a payment to the
Company will be made regardless of whether the Company has received
payment from the Client for those hours. If no payment is received by the
Company from the Client then the Company may demand refund of any
associated payment made to the Company within 45 days of such
payment. The Supplier shall promptly refund such payment to the
Company. The Company may, at its sole discretion, set off any refund
due from the Supplier from any further payments it makes to the Supplier.
The invoice must be received by the Company by no later than the 7th
calendar day of the month following the month to which it relates unless
otherwise agreed by the Company. The Supplier s invoice should bear the
Supplier s name, company registration number, and VAT number and
should state any VAT due on the invoice."

This seems to give complete control of the payment of my invoices to the agent's client. And the refund part? WTF? If I've done the work, got an authorised timesheet - I should be paid, right? The client's payment to the agency is really NOT my problem?

Trouble is, contract end-date is COB Monday... any thoughts, anyone?

[lje]

Are you contracted in or out of the agency regulations? If you are contracted in then they cannot link your payment to the payment by the client. You are automatically contracted in if you have not explicitly contracted out. Also, if you contracted out after you had been introduced to the client then it doesn't count.

[ogreboy]

No, I am contracted out.

Anyway - they are NOT linking payment to me with payment by the client. They are linking it to an ASSURANCE from the client that payment will be forthcoming.

[BolshieBastard]

Its matters not whether you are contract in or not, tell them to **** off with those conditions. But be prepared to lose the role.

Personally, I wouldnt sign anything with those conditions.

[RichardCranium]

Since one of the main reasons we tolerate the %age agencies charge is the factoring service, if they are intending to remove said service they should increase your rate accordingly. I would suggest that since this is an extension, their cut should drop to about 2%.

Edit: I suspect your agency (or, possibly, the client) is going to disappear down the pan in the next few weeks or months. Either way you might be better off at home looking for a new gig than unknowingly working for nothing.

[TheFaQQer]

Its matters not whether you are contract in or not, tell them to **** off with those conditions. But be prepared to lose the role.

Personally, I wouldnt sign anything with those conditions.

WHS.

[nomadd]

I am having issues....

[snip]

This seems to give complete control of the payment of my invoices to the agent's client. And the refund part? WTF? If I've done the work, got an authorised timesheet - I should be paid, right? The client's payment to the agency is really NOT my problem?

Trouble is, contract end-date is COB Monday... any thoughts, anyone?

Tell 'em to shove it. Had exactly the same thing happen to me by Modis a few years back - including the refund bit.

Told them that if they didn't change the wording back to how it was, I would have to have a chat with the client's IT Director to explain why I was not renewing. Needless to say, they changed it back.

Unfortunately, this type of underhand manoeuvre (i.e. I'm sure they were hoping you didn't notice) has become standard industry practice by many agencies these days. Contractor beware.

Nomadd

[TheFaQQer]

Turn the tables - if they say anything, tell them that your legal department has said that you can't change the contract because it will impact your IR35 status.

They're so keen on telling us any old crap and blame it on IR35, so get your revenge in first.

[Monster Munch]

This is just the type of post that demonstrates that there are contractors out ther that are simply disguised employees and possess very little business sense. Since when has it been ok for businesses to enter into contracts for the supply of services, or anyhting else for that matter, without knowing the payment terms? I can assure you that the agency will have their payment terms boldly identified in their contract with the end client. Come on guys, if contractors want to be treated as legitimate businesses in their own right, they have to start thinking and acting like a real buisness, and that means being brave enough to turn away work if the terms of business cannot be agreed. I've worked a many contractors who simply won't do this. Buisness is tough. If you can't take tough dicisions, including turning away work, then I would start thinking about your career as a business owner.

[RichardCranium]

This is just the type of post that demonstrates that there are contractors out ther that are simply disguised employees and possess very little business sense. Since when has it been ok for businesses to enter into contracts for the supply of services, or anyhting else for that matter, without knowing the payment terms?

The OP knew the terms and has - sensibly - read the renewed contract and seen they have changed.

I can assure you that the agency will have their payment terms boldly identified in their contract with the end client.

You overestimate the competence of agencies.

Come on guys, if contractors want to be treated as legitimate businesses in their own right, they have to start thinking and acting like a real buisness, and that means being brave enough to turn away work if the terms of business cannot be agreed.

The OP was asking for advice. The implication is the OP is considering walking away but researching alternatives too.

I've worked a many contractors who simply won't do this. Buisness is tough. If you can't take tough dicisions, including turning away work, then I would start thinking about your career as a business owner.

There are indeed stupid people who sign contracts without reading them then come on here and whinge. They get flamed and quite rightly too.

But here the OP is having terms imposed at very short notice and is sensibly asking their peers for suggestions to deal with it.