Agency fees

joeypesci

Just signed up to a new agency who I essentially work for apparently because there is no umbrella company involved.

I signed up to them to go for a new role with a company that advertised through them. So the agency will be paying me each week. I've agreed my hourly rate, trying to get a bit more out of them. They said they'd call the company and see what they say. However, I know that the current hourly rate that I said would be OK is £12ph, really for my experience in IT I should be getting at least £15ph. Trouble is I don't think I'm gonna get above the £12ph. The agency are trying to fob me off saying they'll try their best but that the company I'm going to work for have their budgets as well.

I'm well aware of that, but I know the agency is mostly likely charging the company say £14-15ph and then pocketing the extra for their commission as that's how agencies work. Then telling me the job is only £12ph.

Do I have a right to get the actual hourly rate the agency are charging the company so I can see how much commission they are taking off my wages? Or can they refuse to give me this information?

dmg24

No, you do not have the right to that information. The rate of commission is between the agency and the organisation, you are not a party to that agreement.

Ebany

Plus I hope they are charging a bit more than that for you as otherwise you will be costing them money. Out of the difference between your pay and their charge they also have to pay employers NI and budget for holiday pay for you, its not as simple as everything on top goes into their pocket (plus, whats so unreasonable about them making a bit of money from you, how do you think they pay for their premesis, staff, bills etc?)

Quiet_One

Its even more fustrating when I work in finance and see my invoices come through from the agency... Obviously the agencies need to make money but the holiday is already accounted for in terms of your hourly rate so they don't pay it.. you do! It's always worth while negotiating your rate with the agencies also play the agencies off one another you may get offered one rate by one agency and another rate by another for the same job...so can work in your favour at times. I'm in a similar position in terms of pay at the moment I had to accept a lower rate than my last three previous jobs as I needed the work basically and wasn't prepared to stay unemployed, its best to not be too proud especially in the current job climate I'm just happy to be working..!

jimbms

I think a lot of people are under the impression an agency just charges a fee and pays them a lesser amount so they can make a profit and pay their own staff. You need to consider the agency as your employer must also pay employers NI and also pay out for public liability insurance for you in the event a cockup occurs caused by an employee at an assigned company, then there is also various other fees etc that every employer has to pay. So as you see it may seem as though they are charging £4/hr more than you get paid and getting a good profit whereas in fact the amount of net profit is very little.

sexki11en

It's a business pure and simple.

That £3 per hour also includes your holiday pay (this is not taken from your hourly rate as suggested above), employers NI, payroll costs, consultants wages, rent/mortgage on the building, VAT costs.

It's not the job centre, the agency actually has to make a profit to stay afloat.

Oh, and often, the hourly rate is set by the client/employing company so that a temp worker is not earning more than their own staff.

If you really don't like the fact that they are earning money by doing their job (i.e placing you) find your own job!

SK x