Ooooo new contracts.....

[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

[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

[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

[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.

[Sockpuppet]

Just out of curiosity what have you got as notice period and payment terms?

Standard RT terms of 30 days notice, none allowed from my side (not worried as I don't do contracts of more than 3 months at a time).

Monthly invoicing but payment is within 14 days.

[zamzummim]

"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

I kid you not RC, both contractors discovered they've been had by the agency, they are taking 40% of what client is paying for the contractor.

One refused to renew, and the other's contract is up for renewal soon and he is adamant not to renew, I am contracting at the same place direct, but there has been some talk from legal that all contractors have to go through that agency, so told them if they force me to do so, then I hope they are willing to pay the extra 40%

[RichardCranium]

They are saying they cannot do it as it is their standard contract and there are 500 contractors on the same contract.

That will be untrue. Every agency will have a variety of contracts in use at the same time.

[bullseye]

So the agency has decided in its wisdom to send out new contracts. These apparently apply from the 28th September.

There are so many bulltulip clauses in there.



Ok, so if the client says "we want you to stay you up for it" I now have to answer ..... "I could tell you but then I'd have to kill you".



So no more contract reviews without asking first.

SP, I hope you read this before the end of day today.

Even I have got a contract through RT, and they are saying I cannot give them any notice and then can give me 30 days notice and terminate the contract and also payment terms are monthly invoices + 30 days for them to pay.

I asked them for weekly invoicing and payments and also 7 days notice from each party. They are saying they cannot do it as it is their standard contract and there are 500 contractors on the same contract. have not signed the contract yet.

Just out of curiosity what have you got as notice period and payment terms?

[RichardCranium]

some agencies are taking the piss - two of the contractors I work with found out that the agency that placed them is getting a 40% cut ... for naming and shaming purposes its CF !!

"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

[zamzummim]

i wouldn't worry too much about these clauses, they are clearly ridiculous and not enforceable.

But why should we be bullied into signing them, the more we go a long the more the agencies are taking advantage... the discussion of the rates is because some agencies are taking the piss - two of the contractors I work with found out that the agency that placed them is getting a 40% cut ... for naming and shaming purposes its CF !!

[jim2406]

my brother, a solicitor, often reminds me law is a grey area.

sure, if you violate the contract they could try to sue you - but it would have to be worth their while (which it isn't) stand up in court (which it wouldn't).

similarly, anyone can attempt to sue anyone for anything, but it doesn't mean it would go anywhere.

i wouldn't worry too much about these clauses, they are clearly ridiculous and not enforceable.

[The Agents View]

So the agency has decided in its wisdom to send out new contracts. These apparently apply from the 28th September.

There are so many bulltulip clauses in there.



Ok, so if the client says "we want you to stay you up for it" I now have to answer ..... "I could tell you but then I'd have to kill you".



So no more contract reviews without asking first.

That last one is bulltulip - You may wish to remind them that from time to time you have to fill in tax returns, mortgage applications, credit agreements, etc etc, all of whom could be construed to be 3rd parties - Quite frankly, it has toss all to do with the agency who you discuss your remuneration package with. Naturally it could land you in hot water, but you're a professional, so I'm probably safe to assume you would know where the line is on that anyway!

Tell 'em to do one for that one in particular...... cr4p contracts made me so mad!

[HeadOfTesting]

So no more contract reviews without asking first.

Surely it's the unsigned doc that goes for review? Surely this isn't enforceble in respect of steps you take to get your legal/tax position checked.

[Sockpuppet]

So the agency has decided in its wisdom to send out new contracts. These apparently apply from the 28th September.

There are so many bulltulip clauses in there.

7.3 The Contractor or the Personnel may not enter into direct negotiations or discussions with the Client with regard to charges, income, contract duration or termination, or any other matter relating to the Assignment save as is expressly allowed for within these Terms.

Ok, so if the client says "we want you to stay you up for it" I now have to answer ..... "I could tell you but then I'd have to kill you".

8.7 These Terms are confidential. Details to do with remuneration, expenses, client identity, charge and pay rates or other information related to these Terms or the Assignment, are not to be disclosed to any third party by the Contractor without the express permission of ReThink in writing.

So no more contract reviews without asking first.