Using same Temp Worker through another agency

SliderUK

Hi I hire temp workers when I'm short of staff and was just wondering what the rules are on hiring the same temp worker who has worked for me previously from another agency?

Basically the temp worker has worked for me in the past for a previous agency (I believe they haven't terminated a contract or anything yet) but they have joined another agency who pays them slightly more and have contacted me. So I said I'll use the new agency because the worker gets more money. But the old agency has contacted me saying that I am not allowed to do this (not sure how they knew). In their contract it said that I'm not allowed to use that worker for 6 months if going through another agency. Is that allowed?

Just thinking this isn't fair on the worker. All the worker wants to do is find jobs and obviously the more money the better for them. They are likely to sign up with several agencies who approach the same customers but then if one of the agencies supplies them who pays less then they can't do anything about it.

Comms69

SliderUK wrote: »

Hi I hire temp workers when I'm short of staff and was just wondering what the rules are on hiring the same temp worker who has worked for me previously from another agency?

Basically the temp worker has worked for me in the past for a previous agency (I believe they haven't terminated a contract or anything yet) but they have joined another agency who pays them slightly more and have contacted me. So I said I'll use the new agency because the worker gets more money. But the old agency has contacted me saying that I am not allowed to do this (not sure how they knew). In their contract it said that I'm not allowed to use that worker for 6 months if going through another agency. Is that allowed?

Just thinking this isn't fair on the worker. All the worker wants to do is find jobs and obviously the more money the better for them. They are likely to sign up with several agencies who approach the same customers but then if one of the agencies supplies them who pays less then they can't do anything about it.

It's nothing to do with the worker, he or she can work for whomever they like.


It's to do with your contract with the agency.

sparkermarketing

If you thought it wasn't fair, why did you sign the contract with the agency in the first place?

sangie595

The contracts usually say something like you can employ them but you will still have to pay the agency even though you are also paying another agency. That's basically the way they operate - you sign a contract with them and you are bound by it. Just as they are. In my experience agencies tend to enforce their contracts, in court if necessary, because if they don't they won't survive two minutes. The worker is welcome to join another agency and work somewhere else.

System

You only have to pay the agency if you employ them directly. If you employ them through another agency you don't.

Source: Someone who has done agency work for most of the last 25 years and been into the same clients for multiple agencies.

sangie595

Tarambor wrote: »

You only have to pay the agency if you employ them directly. If you employ them through another agency you don't.

Source: Someone who has done agency work for most of the last 25 years and been into the same clients for multiple agencies.

You obviously didn't work for some of the agencies we deal with then! But it's fairly clear - the contract spells out the position, and agencies are in a position to deal with breach of contract if they wish to do so.

Source: being the actual employer who enters into these contracts! We pay a fee if we continue to use the worker, even if it's through another agency, and that's the term for all three agencies we use.

Just because you have worked for multiple agencies does not mean that you have any knowledge of this situation or of the contracts between the agencies and their clients. The OP asked if the contractual term was allowed. It is. It's a contractual term. There are consequences to breach of contract. Whether the agency will follow it up, we don't know. But they may.

PasturesNew

You have to read your contract with the agency.

Many years ago (~1989) I worked through an agency and was placed in a job at £X/hour. Another agency approached me with the offer that they'd charge the same rate to the client, but I'd be paid more than £1.20/hour extra. I think it meant £6/hour instead of £4.80. Client was charged £9/hour.

I approached my boss - and he would prefer me to keep more of the money he paid, so he switched and I was immediately hired through the new agency.

At that time, with the contracts we had, that was perfectly legal. Maybe people like us doing it ... caused contracts to change.

sangie595

PasturesNew wrote: »

You have to read your contract with the agency.

Many years ago (~1989) I worked through an agency and was placed in a job at £X/hour. Another agency approached me with the offer that they'd charge the same rate to the client, but I'd be paid more than £1.20/hour extra. I think it meant £6/hour instead of £4.80. Client was charged £9/hour.

I approached my boss - and he would prefer me to keep more of the money he paid, so he switched and I was immediately hired through the new agency.

At that time, with the contracts we had, that was perfectly legal. Maybe people like us doing it ... caused contracts to change.

A good point. Of course, it's still "legal" - in that the law doesn't say you can't do it. But a contract can say whatever two parties agree provided they don't agree to something illegal.

SliderUK

After looking at the contract here are a couple of snippets that I'm a bit confused about.

The Hirer shall be liable to pay a Transfer Fee if the Hirer Engages an Agency Worker Introduced by the Employment Business other than via the Employment Business or introduces the Agency Worker to a third party and such introduction results in an Engagement of the Agency Worker by the third party other than via the Employment Business and:
- where the Agency Worker has been supplied by the Employment Business, such Engagement takes place during the Assignment or within the Relevant Period; or
- where the Agency Worker has not been supplied, such Engagement takes place within 6 months from the date of the Introduction to the Hirer.

Where prior to the commencement of the Hirer’s Engagement other than via the Employment Business the Employment Business and the Hirer agree that such Engagement will be on the basis of a fixed term of less than 12 months, the Employment Business may, in its absolute discretion, reduce the Transfer Fee as calculated in accordance with Schedule 2 pro-rata. Such reduction is subject to the Hirer Engaging the Agency Worker for the agreed fixed term. Should the Hirer extend the Agency Worker’s Engagement or re-Engage the Agency Worker within 12 months from the commencement of the initial Engagement the Employment Business reserves the right to recover the balance of the Transfer Fee.

The first one is saying i'm liable within 6 months if I engage with the worker if not through the employment agency but then the last one says that I am liable to pay the transfer fee if I engage with the worker within 12 months of the initial engagement if not through the employment agency?

Isn't there something in AWR about 14 weeks agencies are not able to charge transfer fees?

anniecave

AWR is about equal pay and conditions for an agency worker versus a direct employee. For example if a worker who is an employee is paid more and gets a range of benefits such as free lunches and access to a free gym but the agency worker is paid less and doesn't get those same benefits, that would be an AWR matter.



The second paragraph is a clarification on the first, not a different clause.
The second paragraph is clarifying that the fee payable may be reduced if the worker is taken on on a short term contract (versus permanent ongoing position). It is then additionally specifying that if the short term contract is then renewed, or there is a gap and then they are re-taken on (this might apply with seasonal work), additional fees may then be payable.

sangie595

OP, you are a business. Are you really willing to place your business in the hands of an anonymous internet board whose posters may or may not be right based on their interpretation of the reading a few bits of a contract you signed? You should have taken proper advice before you started signing contracts. I suggest that if you intend to not adhere to contacts you have signed already, or don't know what they mean, you get proper advice. This is not the place to get business advice. When defending yourself in court "i took the advice of a bunch of anonymous strangers on the internet" will not constitute a defence.