Can my recruitment consultancy increase their cut?

[Wanderer]

the rate they took of my agreed daily fee was 10%. Now, just the other day they've turned around and said that this rate is no longer enough, and they want 18% of that daily rate, because "the initial sum was a low introductory rate and isn't enough now" (or words to that effect).

Just laugh at their ridiculous demand and tell them flatly NO. You really don't need to get into a discussion with them about this.

Seriously, 10% is a very nice little earner for doing nothing over the last 2.5 years. If they don't want to be your agency then you could easily find another one who would take an even smaller cut of your pay. Alternatively, speak to the client about going direct and split the 5% saving between you.

If you really like it there then you may want to speak to the client about becoming permie, unless you are outside IR35 in which case you are probably better off as a contractor.

[BlasterBates]

This is actually quite simple.

Just tell your agent that you will not accept a cut, but you have nothing against him trying to get a rate out of the client (out of politeness).

The markup is nothing to do with you that's between the agency and the client. You can keep out of it just be very firm about maintaining your daily rate.

It's rather pathetic that the agency has come with a begging bowl to one of it's contractors.

[mcquiggd]

Oh dear, They stand to risk more than you because if you decided to walk away to work elsewhere or even directly for the client (if that is possible) then they risk having bid along with agencies to fill your vacancy. No I don't play poker but I am willing to bet that they will back down if they are likely to kill the golden goose and let someone else take over their Client (your boss).

I would tell your boss that since the agency is going to make it impossible for you to afford to work for him, Would he be kind enough to give you a professional reference as you have now applied for both Contract & Permanent roles and would appreciate his help. Phrase it in such a way as to let him come up with the idea himself to offer you work directly, and if he doesn't then you know you have no future there anyway and it is time to move on.

Either way I would tell the agency to take a hike, especially if you haven't had a rate rise since starting (you didn't say?)

Best wishes

Seconded... as additionally the manager will know (or be able to find out) the terms of their contract with the pimp, which could exclude him taking you on directly irrespective of any clause in the contract between you and the pimp that prohibits you working with a client directly, without the pimp getting a cut. And I am 99.9% certain that both contracts will have such a clause, so be careful playing bluff.

But, the pimp will normally back down if the client is adamant enough that he wants you to continue (and the pimp can maintain his 10% for doing bugger all) - or he will simply put it out to tender, and that he is not happy that the pimp is causing his company disruption, so his agency will be ruled out of putting candidates forward.

It really depends on a lot of factors (including your financial situation and whether you can afford to call their bluff, potentially losing your income), but I have been in several positions where similar things have happened, and due to the client playing hard ball with the pimp, we got the pimps to either let me go direct, or on one occasion to actually drop their percentage to ensure I continued on the project (it was Hays, incidentally).

The client doesn't sound organised enough to have a preferred supplier agreement, where they usually dictate the maximum percentage markups from pimps. In this market, it's the client with a requirement that wields the power... it's up to him to use it. Sometime the client is in a position to say to a pimp 'I have 10 people from you who are coming up for renewal... so you better make me happy'...

And pimps are ALWAYS trying it on - never trust a word they say.

[Eyechild]

Thanks for the advice all.

In all truth, I think they're trying their luck. I think they're not doing that well so are scrabbling around for money.

I think there would perhaps be an opportunity to go full time, which I'm debating... though again, I think the agency would try and get some placement or finder's fee.

It's annoying me a bit because in the past people have said "why don't you just cut out the agency" and I didn't because, y'know, bad karma. And hey, then this.

Of course I'm fairly certain there'll be some kind of contractual obligation binding me to to the agency, but I need to check the small print on my contract with them, and indeed check what was agreed with the employer.

[rd409]

Hi there,

Newbie on this forum, which I found Googling for an answer. I hope someone can offer some advice.

Anyway:
About two and a half years ago I was placed in a temporary role by a recruitment consultancy. The role was only ever expected to go for a few days, and the rate they took of my agreed daily fee was 10%.

Well, two and a half years later I'm still there. They don't earn a fortune off me every day for sure, but over the time I've been there, I guess they've earned a fair bit.

Now, just the other day they've turned around and said that this rate is no longer enough, and they want 18% of that daily rate, because "the initial sum was a low introductory rate and isn't enough now" (or words to that effect).

I think they expect the employer to just pay this increase on top but my manager has taken me aside and told me kindly but firmly that this isn't going to happen, and that they appreciate my work but aren't going to pay this extra just because the consultant feels they deserve more. He's told me I need to work out what I'm going to do next.

So... what do I do? Where do I stand? can they do this? Annoyingly, I no longer seem to have a copy of my contract – I signed up with them 6 years ago when they were called something else, and now everyone I originally used to know there has left. The employer pays out invoices on a 6-month basis and they pay me on a weekly payroll, so they are good for something, but still...

Has anyone got any advice? annoyingly this has come at a time when I could actually use some financial stability for six months or so.

Thanks!

I think at the 23rd month you should have approached the agency telling them that they have had a good run with 10% cut. Now that you are caught by 24 months rule, you need to reduce that to 7% to take care of the additional financial burden on the working practice. You missed that boat, and I guess they are now playing that card. Stay firm, and tell them to take a walk. Ask the client, if they are willing to go direct? The client may be in to save some money by offering you the exact day rate that you are getting thus saving about 10%, if you can afford that is. Or else split that so the client can have 5% savings.

[BS1397]

Oh dear, They stand to risk more than you because if you decided to walk away to work elsewhere or even directly for the client (if that is possible) then they risk having bid along with agencies to fill your vacancy. No I don't play poker but I am willing to bet that they will back down if they are likely to kill the golden goose and let someone else take over their Client (your boss).

I would tell your boss that since the agency is going to make it impossible for you to afford to work for him, Would he be kind enough to give you a professional reference as you have now applied for both Contract & Permanent roles and would appreciate his help. Phrase it in such a way as to let him come up with the idea himself to offer you work directly, and if he doesn't then you know you have no future there anyway and it is time to move on.

Either way I would tell the agency to take a hike, especially if you haven't had a rate rise since starting (you didn't say?)

Best wishes

[BolshieBastard]

Hi there,

Newbie on this forum, which I found Googling for an answer. I hope someone can offer some advice.

Anyway:
About two and a half years ago I was placed in a temporary role by a recruitment consultancy. The role was only ever expected to go for a few days, and the rate they took of my agreed daily fee was 10%.

Well, two and a half years later I'm still there. They don't earn a fortune off me every day for sure, but over the time I've been there, I guess they've earned a fair bit.

Now, just the other day they've turned around and said that this rate is no longer enough, and they want 18% of that daily rate, because "the initial sum was a low introductory rate and isn't enough now" (or words to that effect).

I think they expect the employer to just pay this increase on top but my manager has taken me aside and told me kindly but firmly that this isn't going to happen, and that they appreciate my work but aren't going to pay this extra just because the consultant feels they deserve more. He's told me I need to work out what I'm going to do next.

So... what do I do? Where do I stand? can they do this? Annoyingly, I no longer seem to have a copy of my contract – I signed up with them 6 years ago when they were called something else, and now everyone I originally used to know there has left. The employer pays out invoices on a 6-month basis and they pay me on a weekly payroll, so they are good for something, but still...

Has anyone got any advice? annoyingly this has come at a time when I could actually use some financial stability for six months or so.

Thanks!

Yes, they most certainly can increase their cut. If you let them!

If you've been at a place for 2.5 years, you seriously need to consider going permanent as you could be missing out on permie benefits if the client \ agent arent adhereing to the agency workers regs.

At the same time, you can tell the agent you have no intention of reducing your take as after 2.5 years, they have made a nice sum on you out of a role that was only supposed to be for a few days.

Tell the agent you will leave if they try and implement any cut to your take but, you have to be firm and be prepared to leave if they refuse.

[Scrag Meister]

1. Tell them to take a hike and walk. May be they'll see that something is better than nothing and reconsider.
2. Take the cut and be their biatch.
3. Work out what the agency is actually taking now, what they have taken in total and what they would take if they cut your rate and negotiate.

GL whatever you decide.

[Pondlife]

Hold your ground and explain to them that since neither yourself nor the client will budge 10% of something is far better than 18% of fck all.

[Sausage Surprise]

Go permie - sounds like you're 99% there already being on the payroll.

[garethevans1986]

If there isn't a handcuff clause in your contract then go direct to the client.

GE

[Eyechild]

Hi there,

Newbie on this forum, which I found Googling for an answer. I hope someone can offer some advice.

Anyway:
About two and a half years ago I was placed in a temporary role by a recruitment consultancy. The role was only ever expected to go for a few days, and the rate they took of my agreed daily fee was 10%.

Well, two and a half years later I'm still there. They don't earn a fortune off me every day for sure, but over the time I've been there, I guess they've earned a fair bit.

Now, just the other day they've turned around and said that this rate is no longer enough, and they want 18% of that daily rate, because "the initial sum was a low introductory rate and isn't enough now" (or words to that effect).

I think they expect the employer to just pay this increase on top but my manager has taken me aside and told me kindly but firmly that this isn't going to happen, and that they appreciate my work but aren't going to pay this extra just because the consultant feels they deserve more. He's told me I need to work out what I'm going to do next.

So... what do I do? Where do I stand? can they do this? Annoyingly, I no longer seem to have a copy of my contract – I signed up with them 6 years ago when they were called something else, and now everyone I originally used to know there has left. The employer pays out invoices on a 6-month basis and they pay me on a weekly payroll, so they are good for something, but still...

Has anyone got any advice? annoyingly this has come at a time when I could actually use some financial stability for six months or so.

Thanks!