Contract day rate changed

[DDD1]

Hey all,

I started a new contract on the 8th of March and it runs until 15th May. The agency I got the contract with informed me yesterday that due to Coronavirus my day rate will be reduced by 20% which is in line with how they are treating perm staff. I'm unsure if they can actually do this seeing as the contract runs until 15th May. Also, treating contractors how they are treating perm staff doesn't sit right, what with the benefits perm staff will still receive.

Any help would be appreciated.

Thanks!

[MrMarkyMark]

Hey all,

I started a new contract on the 8th of March and it runs until 15th May. The agency I got the contract with informed me yesterday that due to Coronavirus my day rate will be reduced by 20% which is in line with how they are treating perm staff. I'm unsure if they can actually do this seeing as the contract runs until 15th May. Also, treating contractors how they are treating perm staff doesn't sit right, what with the benefits perm staff will still receive.

Any help would be appreciated.

Thanks!

Well, they should issue you a new contract stating the revised rate.
Used to happen in banking all the time, you can choose to sign or threaten to walk.
If you choose the latter you will have to be prepared to go, if they refuse to stick to the original rate, not really any other options available.

[Scruff]

Realistically, you have a choice to call their bluff, or you terminate given an unacceptable change to the Terms of the contract.

Call their bluff - they'll accept or they'll terminate your contract. You will buy a lot of goodwill if you accept.

The market is dire out there, so I know what a prudent professional will do given the circumstances. Sit it out at less 20% until the end of the contract - not long to go and unless you have a highly desirable niche skill, Daytime television and The Archers will be high on your agenda.

[ladymuck]

I would see it less as the company treating employees and contractors the same and more that there is a cost cutting exercise going on and everybody (employees and suppliers) are being asked to take a 20% cut.

Happens a lot to those of us who have worked in banking even without a pandemic as an excuse.

Essentially, the agency have issued a variation to your contract terms as you are mid contract.

It's up to you whether you accept it or walk.

[TestMangler]

Realistically, you have a choice to call their bluff, or you terminate given an unacceptable change to the Terms of the contract.

Call their bluff - they'll accept or they'll terminate your contract. You will buy a lot of goodwill if you accept.

The market is dire out there, so I know what a prudent professional will do given the circumstances. Sit it out at less 20% until the end of the contract - not long to go and unless you have a highly desirable niche skill, Daytime television and The Archers will be high on your agenda.

C'mon.......the rest is spot on. That is utter rubbish.

[northernladuk]

20% more of nothing is....

[CosmicWave]

Hey all,

I started a new contract on the 8th of March and it runs until 15th May. The agency I got the contract with informed me yesterday that due to Coronavirus my day rate will be reduced by 20% which is in line with how they are treating perm staff. I'm unsure if they can actually do this seeing as the contract runs until 15th May. Also, treating contractors how they are treating perm staff doesn't sit right, what with the benefits perm staff will still receive.

Any help would be appreciated.

Thanks!

I think your client is just taking advantage of the COVID-19 situation and applying the advantage to cut costs.

Anyway, its up to you, to take it or leave. Check your finances and decide.

The market out there is absolutely empty.
There are shameless agents calling up asking "How are you finding the market?" (whilst people are dying in 100s out there everyday!)

Ensure you ask for new contract paperwork though.

Once you accept it, in a week or so, they will come around and ask for another cost cut. So, be prepared for that coming next.

All that said, this will not affect your IR35 position if that is what you are thinking about.

[psychocandy]

Yeh its take it or leave it I'm afraid....

Mate of mine got told "don't come in for 3 months" so zero pay. Then client tried to tell him not to try and work elsewhere because they'll expect him back when they want him back. Seemed like a bit much....

Anyway, he was lucky, got a new gig this week working from home, handed in his weeks notice. Client was not happy but it does work both ways...

[hairymouse]

Yeh its take it or leave it I'm afraid....

Mate of mine got told "don't come in for 3 months" so zero pay. Then client tried to tell him not to try and work elsewhere because they'll expect him back when they want him back. Seemed like a bit much....

Anyway, he was lucky, got a new gig this week working from home, handed in his weeks notice. Client was not happy but it does work both ways...

Why hand in the notice? I'd keep the old role in my back pocket in case something goes wrong with the new one in 3 months time. If everything is still good with the new client in 3 months then you can tell the old client that you would like to extend the hiatus indefinitely.

[MrMarkyMark]

Why hand in the notice? I'd keep the old role in my back pocket in case something goes wrong with the new one in 3 months time. If everything is still good with the new client in 3 months then you can tell the old client that you would like to extend the hiatus indefinitely.

This is one of the many of PCs mates we are talking about