Agency pay rise and possible back pay...but why?

I had a phone call from my agency informing me of a pay rise. 'Great', I said, and didn't think too much of it until I got home and read and email which informed me of the rise and stated it would be effective immediately.

It went on to say they were 'conducting a review of all payments that had been made and will be calculating any backdated payment owed. Once this has been calculated we will contact you to discuss the amount and you will receive payment within 15 days.'.

I then called the agency to find out what the 'review of payments' was about but the consultant was extremely cagey and just kept saying they were 'working with the employer' and we'd be notified individually if any backdated payment was due.

Other colleagues have also phoned to find out what's going on and they've all received a similar sort of vague and somewhat defensive response.

Obviously, I'm pleased I'm getting a pay rise, but it does seem odd that it will take effect immediately, especially as we're only a couple of weeks away from the end of the financial year. It's almost as if it's something they've been mandated to do.

And why their reticence to discuss the reasons around possible backdated payments, as if they're trying to somehow protect themselves or hide something?

We're not earning below the minimum wage, so it's not like the Sports Direct issue that has recently been in the news, but this episode has left us with the suspicion that something's been going on, but we're not sure what.

Has anyone got any ideas about what it might be?
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Comments

  • London50
    London50 Posts: 1,850 Forumite
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    Only thing I can think of is that hours worked against pay per hour SOMEONE has found out that it is below min/living wage.So covering their own backs.
    Perhaps they have heard there is an audit from a gov department coming up in April {after the 6th} and as above.
    Yet great you are getting something even though it COULD have been money you were entitled to anyway:0)
  • TELLIT01
    TELLIT01 Posts: 16,469 Forumite
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    My guess would be the same - staff have been paid below minimum wage.
  • TELLIT01 wrote: »
    My guess would be the same - staff have been paid below minimum wage.

    The thing is, as I mentioned in my opening post, we're definitely not paid below the legal minimum wage, so it wouldn't be that.
  • could it be the agency were taking a bigger cut than they should have? for example when we hire agency staff at work we would pay the agency, lets say £13 per hour. they would take £2.50 per hour of that as their fee and the rest would be paid to the employee. maybe they were taking more per hour than agreed with the employer?
    CCCC #33: £42/£240
    DFW: £4355/£4405
  • London50
    London50 Posts: 1,850 Forumite
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    The thing is, as I mentioned in my opening post, we're definitely not paid below the legal minimum wage, so it wouldn't be that.

    Very strange then, the other thing could be that there is a takeover in the pipeline and info passed on does not match wage structure for people like yourself and they are now trying to sort it out before any further checks are made.
    At the end of the day it is all pure speculation on our part and unless someone higher up your staffing ladder lets something slip I do not think you will ever find out the truth:)
  • could it be the agency were taking a bigger cut than they should have? for example when we hire agency staff at work we would pay the agency, lets say £13 per hour. they would take £2.50 per hour of that as their fee and the rest would be paid to the employee. maybe they were taking more per hour than agreed with the employer?

    Yes, I guess that's a possibility. But it seems strange that an agency could get away with skimming off more than agreed, as I would have thought that rates paid to direct to the temps would have been stipulated in the contract.
  • London50 wrote: »
    Very strange then, the other thing could be that there is a takeover in the pipeline and info passed on does not match wage structure for people like yourself and they are now trying to sort it out before any further checks are made.
    At the end of the day it is all pure speculation on our part and unless someone higher up your staffing ladder lets something slip I do not think you will ever find out the truth:)

    But I'm not sure how easy it will be to cover things up indefinitely. If they're making backdated payments, then people should have the right to know on what basis they've been calculated to ensure that the sum they receive is correct.

    And by the way, this is a public organisation, rather than a private company.
    Save
  • London50
    London50 Posts: 1,850 Forumite
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    But I'm not sure how easy it will be to cover things up indefinitely. If they're making backdated payments, then people should have the right to know on what basis they've been calculated to ensure that the sum they receive is correct.

    And by the way, this is a public organisation, rather than a private company.
    Save

    As I said then, unless someone slips up I do not think you will ever find out the truth behind it.
    I would like to know the reason myself but I honestly cannot think of any straightforward reason why they are being so cagey if they have nothing to hide from the workforce:(
  • TELLIT01
    TELLIT01 Posts: 16,469 Forumite
    First Anniversary First Post Name Dropper PPI Party Pooper
    The whole thing does seem very odd. Why all the secrecy if the underlying problem is something as simple as clerical error / finger trouble causing incorrect payment. All the secrecy does is to increase interest in what was going on.
  • dlmcr
    dlmcr Posts: 182 Forumite
    First Post First Anniversary Combo Breaker
    1)
    Status of "temps" they need to be paid the same as permanent if it is identified they are doing broadly the same job. Paying them differently is discriminatory, possibly the client or the agency has just "discovered" that fact and is now fixing it.

    https://www.gov.uk/agency-workers-your-rights/your-rights-as-a-temporary-agency-worker

    2)

    And by the way, this is a public organisation, rather than a private company.
    Save
    IR35 In / Out changes effective April this year that affect the public sector although as you are temps not contractors probably not.

    http://forums.contractoruk.com/public-sector-ir35/
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