New Contract with Agent then suddenly changed to Client direct? what?

[Noosa]

hi,

Secured a new contract, due to start on Monday. Chasing paperwork for the last week, getting told 'its being processed. This Morning I said if its not in my inbox today then I won't be starting.
Agent calls " yeah er, we're changing the way you will contract, you will go direct with them and they will pay us a separate invoice. They have your details will be in touch today, nothing will really change except they'll pay you direct".

What? Really? Is this normal? Somewhat concerned the client contract could pop through as a fixed term contract (i they were signing me for 12 months but it is a longer programme of work). Who is benefitting from this change, the client?

Thx.

Any advice? Appreciate I can sit and wait for the contract to come through but, any ideas whats going on?

[DirtyDog]

No, it's not normal.

Check the contract VERY carefully when it arrives to make sure you know exactly what you are signing up for.

[Bellona]

No, it's not normal.

Check the contract VERY carefully when it arrives to make sure you know exactly what you are signing up for.

WDDS - Not at all normal.
Also, if you are contracting direct, what are they invoicing the pimp for ??
If you are not wholly conversant with contracts, get someone else to check it for you - preferably a professional.

HTH - good luck

[HeadOfTesting]

A different perspective as someone who previously co-owned a recruitment agency.....

One explanation is that the agent is on a "margin only" deal.

This means that the agent bills the client for their margin but doesn't handle the ongoing invoices

There could be various reasons for this e.g. the client may insist on it. But another explanation is that the agent doesn't have the reserves (or the credit worthiness to access invoice factoring services) that would enable them to handle your invoices. I've known large agencies work on this basis so it's not necessarily a red flag but if I was a betting man that's what I would put my money on and I think it would be prudent to take that cynical view.

On the basis, I think the proposed arrangement is in your interest, providing there is nothing else on the landscape which is a deal breaker (e.g. FTC which is a deal breaker for me too).

Good luck,
HoT

[northernladuk]

I guess from this you are not bothering having your contract reviewed by QDOS then?

[NorthWestPerm2Contr]

I guess from this you are not bothering having your contract reviewed by QDOS then?

If ever there was a necessity to get your contract checked it would be in such a scenario!

[eek]

If ever there was a necessity to get your contract checked it would be in such a scenario!

I would also be checking the finances of the end client.

Yes the agency may not have the ability or reserves to factor the invoice, but it may also be the case that the agency has tried to factor the invoice to the company and the end client isn't credit worthy so no bank will touch them..

And by ensuring you contract direct with the end client, the agency doesn't take the risk of paying you when the end client goes bang...

[VectraMan]

The contractors here work like this. The agency just receives a finders fee, as they would with a permie and the contractors invoice direct.

Just check on payment terms.

[Noosa]

ok, thanks folks.

The agent described it as mentioned by HoT, they will invoice seperatly. Both recruitment Agency and Company are both large and reputable, an invoice such as mine shoudln't be a problem. I had immediately thought that they might be trying to pull the wool over my eyes and issue at FTC which is a no go.

I have 2 hours on site of my current contract client. Have just emailed agent again to say I am anxious have nothing in writing that confirms I should turn up on Monday. I'll have to wait and see.

I was hoping that its a simple change in terms for the client and the agent, but wasn't sure who benefits from that.
PS contracts are normally reviewed by myself and accountant prior to signing, which is why I'm annoyed as they're not giving me much time to do that now by changing who the contract is with at the last minute - wouldn't otherwise have resigned my current contract without seeing new contract terms first

[psychocandy]

ok, thanks folks.

The agent described it as mentioned by HoT, they will invoice seperatly. Both recruitment Agency and Company are both large and reputable, an invoice such as mine shoudln't be a problem. I had immediately thought that they might be trying to pull the wool over my eyes and issue at FTC which is a no go.

I have 2 hours on site of my current contract client. Have just emailed agent again to say I am anxious have nothing in writing that confirms I should turn up on Monday. I'll have to wait and see.

I was hoping that its a simple change in terms for the client and the agent, but wasn't sure who benefits from that.
PS contracts are normally reviewed by myself and accountant prior to signing, which is why I'm annoyed as they're not giving me much time to do that now by changing who the contract is with at the last minute - wouldn't otherwise have resigned my current contract without seeing new contract terms first

Would be certainly be telling them monday aint happening until you see the contract and get it reviewed.