Agents as consultants?!

[SimonMac]

Had a phone call from an agent today about a placement with a large IB, however it was a little strange as it seemed that they were acting as consultants to the end client rather than just providing a recruitment service, is this common?

[jmo21]

Seemed?

[craig1]

Had a phone call from an agent today about a placement with a large IB, however it was a little strange as it seemed that they were acting as consultants to the end client rather than just providing a recruitment service, is this common?

I've seen a few, mainly those trying to persuade contractors into doing the "employed consultant" role that they pretend is a contract. Worst of all worlds for a contractor, permie wages, contractor insecurity.

[northernladuk]

Spring did this at Barclays. They were putting contractors in but also offering some kind of managed service so a guy I new went with it. They were paying below contractor rates but charging more than a contractor. The idea was this guy was working for Spring. The agreement was he was able to go on the bench should the work dry up. They did honour a month of bench time in their offices and then let him go.

They just seemed to be trying to get past the headcount option.

[SimonMac]

Whats the crack IR35 wise then, is it a red flag?

[northernladuk]

Whats the crack IR35 wise then, is it a red flag?

Hmm good question. I can't remember if the guy I knew was employed by them or was contracted. I guess the fact he had a months bench time means he was employed. I seem to think he had holiday pay as well.

Details will be in the contract so I would ask them. You will be employed (most likely) or contracted to them at tulipty rate (seems odd)

If your situation is different and they are contracting you to be part of a total solution consultancy then you just need to contract to understand the IR35 issues.

I have a question about IR35 in consultancy to client which I will ask in a new thread actually.

[thunderlizard]

Some like to position themselves like that. It gives them a better chance of being able to staff entire projects rather than competing for the scraps. They always fall short of fixed price stuff.

It's also worth remembering that many of the companies that are traditionally thought of as consultancies have more in common with recruitment agencies than they'd like to admit. It's not unusual for the negotiator on a consultancy team to be the only one who's employed by the consultancy, and have him use a contract PM who brings in a team of contractors.