Reply to: Contract day rate changed

[LondonManc]

one day less in fact

As long as you spread that across the week. Otherwise you'll only be able to bill for four days.

[d000hg]

It's a slightly worrying sign they view you like an employee or it could be a cynical ploy. You can challenge it but if this is imposed across the workforce it sounds a bit unlikely to work.

Worth a push but be polite and professional, don't make threats you aren't prepared to follow.

How/why are they reducing all permie salaries 20%? That is surely needing consent unless they are furloughing which is very different. Are they just seeing the 80% figure in the headlines and jumping on board?

[caffeine man]

Had this happen to me in the 2008 financial crisis. I took the cut. I hear some banks ( the red and white types ) do this routinely when a contractor starts


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[Old Greg]

If you're working at home, accept and then work 25% less hard.

[MisterLysenkiy]

You could accept the change and do 20% less work - seems fair to me

one day less in fact

[wcsltd]

You could accept the change and do 20% less work - seems fair to me

[BlueSharp]

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!

First thing I would do is speak to the end client and make sure this is not just the agent trying it on. If it is legit then I would probably take it and look for something else.

[BlasterBates]

The companies that are "taking advantage" are few and far between when GDP drops by 30-40%, many companies need to cut costs drastically just to keep solvent.

I would accept your 20% cut. The market is currently awash with laid off contractors.

[dx4100]

Hardly the time to be complaining about taking a 20% rate cut... The world is burning and there isn't much going on beyond your current contract.

[northernladuk]

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

And birds of a feather flock together.

[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

[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.

[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...

[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.

[northernladuk]

20% more of nothing is....