Recruitment Agency ripping me off!

dawsinho

Hi all! Been a while since I’ve posted on these forums.

Ok, straight to the point! I’m a temp worker and work via a recruitment agency… I get paid an hourly rate. Today I found out that my agency got a rate increase for my contract this summer but didn’t pass it on to me – Does anyone know if this is illegal?

Surely any rate increase should be passed on to me or at least split 90/10% I’m absolutely livid! Basically they already charge a £3.50 margin per hour and it appears this has now gone up to at least £6.00.

Is this common practice and allowed? Surely this must break some sort of employment law?

Any advice is much appreciated!

CCFC_80

As previously said, you need to negotiate a pay rise to reflect this.
You might not get it though as these days agencies have got you by the ba**s

dawsinho

Well following further discussions it appears the agency in question didn’t even seek approval to up their rates and just did it 6 months ago… ridiculous.

My company didn’t even realise! I’m hoping this will give me recourse to get rid of my agency and work via someone who charges a reasonable rate.

heretolearn_2

The agency has a contract with your employer.

You have a contract with the agency.

There is no connection between the two. You are not paid on a '% of the fee the agency gets' basis.

You could look at it as if you are a supplier. If I negotiate a higher fee from a customer I don't go back and offer to pay my suppliers more as well. It's nothing to do with them.

Acc72

dawsinho wrote: »

Well following further discussions it appears the agency in question didn’t even seek approval to up their rates and just did it 6 months ago… ridiculous.

My company didn’t even realise! I’m hoping this will give me recourse to get rid of my agency and work via someone who charges a reasonable rate.

As other have said, what you negotiate with the agency and what the agency negotiate with the employer are 2 seperate things.

The rates charged and paid by an agency are a constant source of friction - particualrly if the employee works in accounts and actually sees the invoices.

Based on the above, you might find yourself looking for another job anyway.

an9i77

Basically the agency will try and pay you as little as they can get away with whilst charging the client the most they can get away with. This is how most businesses make their money ie buy low sell high. Sorry if that makes you sound like a commodity - but you are.

CDC2011

A previous colleague of mine had a temp contract that was coming to an end but the company still wanted to keep her on for another period of time.

She negotiated directly with the company securing a pay rise for herself in her rate, and saving the company a significant amount as they wouldn't have to pay an agency. She then left the agency at the end of the original contract and came back to the company as a self employed contractor sorting out her own tax and NI. She just invoiced the company for her hours each month and they paid her directly.

I'm assuming this was all done above board and I don't know any more details but is this something that might workfor you? (depends on their relationship with the agency I guess)

agrinnall

CDC2011 wrote: »

A previous colleague of mine had a temp contract that was coming to an end but the company still wanted to keep her on for another period of time.

She negotiated directly with the company securing a pay rise for herself in her rate, and saving the company a significant amount as they wouldn't have to pay an agency. She then left the agency at the end of the original contract and came back to the company as a self employed contractor sorting out her own tax and NI. She just invoiced the company for her hours each month and they paid her directly.

I'm assuming this was all done above board and I don't know any more details but is this something that might workfor you? (depends on their relationship with the agency I guess)

I would be astonished if the agency didn't have a clause in the contract to prevent this, I hope your friend doesn't get caught because she will be in big trouble if the agency do find out.

somethingcorporate

agrinnall wrote: »

I would be astonished if the agency didn't have a clause in the contract to prevent this, I hope your friend doesn't get caught because she will be in big trouble if the agency do find out.

I agree with this, it would be a pretty rookie agency that didn't include a provision like this in their contracts!

CDC2011

As I said I don't know the finer details, only a basic overview of what essentially happened so I cant really comment further on any t&c's of the particular contract. As far as I know, the agency got the term they had originally agreed, at the end of the term they weren't renewed and the company negotiated an alternative way of getting someone in to do the work.

Not sure if this makes any kind of difference but if its risky business happy to advise OP to ignore my post and steer clear of this!

sujman

Hopefully you company has an agreement with the agency that after x number weeks, they are free to take you on without paying a sign on fee with the agency.

If they do and the period has passed, nothing stopping you working directly with the company.