Rip off agency. Advice sought.

#1
Hello. I don’t want to sound like a whining rich guy, but there’s a principle here and it’s definitely about the money.

I’m on a long term day rate rôle through my own Ltd Co. There are no issues about concealed employment, that side of things is fully kosher.

The existing dept. head, with whom I was working on projects, left a few weeks ago (under a bit of a cloud-fake illness leave, fiddling expenses, fibbing about qualifications and making a pass at the wife of the top customer at a function. No, he wasn’t ever 2 i/c of a TA Inf Bn)


They offered me his job, PAYE, and I’ve accepted.

In the genial handshaking and out comes the sherry in the boardroom, the Finance Director gently ribbed me about the pay cut to PAYE on the low six figures. I said it wasn’t that big a drop. He looked puzzled and asked some technical tax questions which I answered like this: “Duuuuhhhhh???”


Turns out, the agency I work through (who told me their daily slice of my daily pie is 10%) are taking closer to 30%.


Over the time I’ve been here, since last June, the difference adds up to around £22k.

I feel I’ve been took for a mug, and I’m very angry.


Anyone got any ideas for setting things right?*




*going round their office with a bat, shouting ‘give me my money you robbing bastards’ has already crossed my mind.
 
#2
Just to add, in my previous jobs I’ve had dozens of agencies supplying scores of guys, and to me 10%-12.5% is grudgingly acceptable.

I mean, all they do is make a few phone calls and process some invoices. Like a dick I never made the checks on my own day rate versus what they get gross.




Bastards.
 
#3
Hello. I don’t want to sound like a whining rich guy, but there’s a principle here and it’s definitely about the money.

I’m on a long term day rate rôle through my own Ltd Co. There are no issues about concealed employment, that side of things is fully kosher.

The existing dept. head, with whom I was working on projects, left a few weeks ago (under a bit of a cloud-fake illness leave, fiddling expenses, fibbing about qualifications and making a pass at the wife of the top customer at a function. No, he wasn’t ever 2 i/c of a TA Inf Bn)


They offered me his job, PAYE, and I’ve accepted.

In the genial handshaking and out comes the sherry in the boardroom, the Finance Director gently ribbed me about the pay cut to PAYE on the low six figures. I said it wasn’t that big a drop. He looked puzzled and asked some technical tax questions which I answered like this: “Duuuuhhhhh???”


Turns out, the agency I work through (who told me their daily slice of my daily pie is 10%) are taking closer to 30%.


Over the time I’ve been here, since last June, the difference adds up to around £22k.

I feel I’ve been took for a mug, and I’m very angry.


Anyone got any ideas for setting things right?*




*going round their office with a bat, shouting ‘give me my money you robbing bastards’ has already crossed my mind.
Read the contract between you and the agency. If they are in the wrong, request the difference back and sue them if not forthcoming. Clear breach of contract. If you are in the wrong, then man up and move on. Lesson learned, RTFC and all that.

However, as you're now the Fromage Grand, just cut them dead and no more business.
 
#4
Read the contract between you and the agency. If they are in the wrong, request the difference back and sue them if not forthcoming. Clear breach of contract. If you are in the wrong, then man up and move on. Lesson learned, RTFC and all that.

However, as you're now the Fromage Grand, just cut them dead and no more business.
Hmmm looked at contract, it says ‘reasonable’.


Classic.

I’m going to play the card whereby now I’m the dept head and on the Board, if they want our business (appx. 20-30 temp engineers on £200 a day per year, 3-4 managers on £38k -£70k) they can write a cheque out quick smart or we go to the Yellow Pages.


Also looking at their Manifesto which drools about ‘transparency’ and ‘integrity’ (lol from recruiters! Make estate agents look like Templars) and their trade bodies. Might drop a line to their CEO but he looks like a right chancer and would probably high five the shitbag who’s ripped me off.

Taking it on the chin as you suggest may be my end game. Might contact HMRC as I’m sure their fees are subsumed in admin costs, which to my certain knowledge total appx. 4 hours a week for a guy on £12 ph


Nice guy, too, might get him a mahoooosive payrise.
 
#5
Is there any law against taking an immorally-large whack?

I'd like there to be, but strongly suspect there isn't, so my totally unqualified opinion is that unless there was something in writing about them taking 10% and they took 30%, the only thing you can do is warn everyone you know against working through this agency. If there are any forums frequented by people who might use them, that might be a good, anonymous platform on which to blacken their reputation :)

If they misrepresented the numbers to the company that has now become your employer, that company might also be interested in doing something. If the agency needs them more than vice-versa, a phone call on the lines of "Give our nice Mr Spec the 20k you diddled him out of or we'll never use you again" might help, but I wouldn't hold my breath.
 
#6
Is there any law against taking an immorally-large whack?

I'd like there to be, but strongly suspect there isn't, so my totally unqualified opinion is that unless there was something in writing about them taking 10% and they took 30%, the only thing you can do is warn everyone you know against working through this agency. If there are any forums frequented by people who might use them, that might be a good, anonymous platform on which to blacken their reputation :)

If they misrepresented the numbers to the company that has now become your employer, that company might also be interested in doing something. If the agency needs them more than vice-versa, a phone call on the lines of "Give our nice Mr Spec the 20k you diddled him out of or we'll never use you again" might help, but I wouldn't hold my breath.
That’s a very good idea.


Thanks.


Threat from the M.D. rather than the new, whiny junior board member (me).

Nice one.
 
#7
Forgot to say, though it should be obvious - burn their offices to the ground. Nowt like a serious fire to fcuk up a business :)

Just don't get caught :)
 
#11
You're richer than Spec-op1989's bollocks?

How nice for you.
I didn’t find time for a shower this morning and due to a series of events with two very similar overnight bags, my Y-fronts didn’t get the usual relief.


If you’re richer than my bollocks, suggest a quick squirt of Brut 33.


Edit:


Not so much the bollocks themselves, more the indeterminate bit right at the top of the inside leg. Does it have a name?


It’s a bit sort of greasy and whiffs.
 
#12
Hello. I don’t want to sound like a whining rich guy, but there’s a principle here and it’s definitely about the money.

I’m on a long term day rate rôle through my own Ltd Co. There are no issues about concealed employment, that side of things is fully kosher.

The existing dept. head, with whom I was working on projects, left a few weeks ago (under a bit of a cloud-fake illness leave, fiddling expenses, fibbing about qualifications and making a pass at the wife of the top customer at a function. No, he wasn’t ever 2 i/c of a TA Inf Bn)


They offered me his job, PAYE, and I’ve accepted.

In the genial handshaking and out comes the sherry in the boardroom, the Finance Director gently ribbed me about the pay cut to PAYE on the low six figures. I said it wasn’t that big a drop. He looked puzzled and asked some technical tax questions which I answered like this: “Duuuuhhhhh???”


Turns out, the agency I work through (who told me their daily slice of my daily pie is 10%) are taking closer to 30%.


Over the time I’ve been here, since last June, the difference adds up to around £22k.

I feel I’ve been took for a mug, and I’m very angry.


Anyone got any ideas for setting things right?*




*going round their office with a bat, shouting ‘give me my money you robbing bastards’ has already crossed my mind.
Verbal agreements, implied terms, all a bit dodgy unless you have some dodgy emails, or a couple of third parties to back it up. Otherwise you will have to live with it put it down to experience and in future you record similar conversations, read contracts and take no one at their word.

If you have stepped into a directors job you can slowly engineer it so that you gradually do not replace staff from that agency with new staff from that agency. Simples.

Then once you have done that you call them up and ask them if they would like to take part in a bridal parade presentation to pitch to potentially supply future staff. And then don't give them anything anyway.
 

The_Duke

LE
Moderator
#13
If you didn’t read your contract - more fool you.

If you read your contract, saw that their fees were unstated but to be “reasonable” - more fool you.

If you are going to use the threat of removing the company’s business to renegotiate what you should have sorted up front, you should make sure your firm is happy with that and do it for all contractors, not just your personal benefit.
 

ugly

LE
Moderator
#14
Read the contract between you and the agency. If they are in the wrong, request the difference back and sue them if not forthcoming. Clear breach of contract. If you are in the wrong, then man up and move on. Lesson learned, RTFC and all that.

However, as you're now the Fromage Grand, just cut them dead and no more business.
I seriously doubt your Ltd company has a contract which details the agency mark up. The agencies don't usually give away those figures but I know one that was making 100% of what I got although they had to farm me through two other organisations and lost about half of that. Its no surprise to hear a company charges say £750 a day plus vat and pays you £450 plus vat. Its quite normal and why infrastructure jobs cost so much.
Its not as if the agency has to pay your timesheet every week whilst waiting 3 months or more for their money is it?
Wait, oh yes and the professional sponsorships needed in some industries.

It is about time that folk had a proper job to come home from.
 
#15
Hmmm looked at contract, it says ‘reasonable’.


Classic.

I’m going to play the card whereby now I’m the dept head and on the Board, if they want our business (appx. 20-30 temp engineers on £200 a day per year, 3-4 managers on £38k -£70k) they can write a cheque out quick smart or we go to the Yellow Pages.


Also looking at their Manifesto which drools about ‘transparency’ and ‘integrity’ (lol from recruiters! Make estate agents look like Templars) and their trade bodies. Might drop a line to their CEO but he looks like a right chancer and would probably high five the shitbag who’s ripped me off.

Taking it on the chin as you suggest may be my end game. Might contact HMRC as I’m sure their fees are subsumed in admin costs, which to my certain knowledge total appx. 4 hours a week for a guy on £12 ph


Nice guy, too, might get him a mahoooosive payrise.
Good plot. However ..... while you are checking your contract to find out what cut of your salary you agreed that they could take, check whether there are any clauses that prevent you from accepting permanent employment with a company where they have previously placed you.
 

ugly

LE
Moderator
#16
Normally once you have worked six months the client can offer permanent work. I have had clients sack me and then take me on to get out off paying anything to the agency. They paid me directly at an improved rate and similar TACOS, however the agency probably knew so I had to punt my CV for a few weeks.
The % cut of your salary normally applies to a permanent placement from scratch. Lots of big firms ignore the agencies if they cry about losing out or punt you through an in house supplier until you sign the permanent contract!
 
#17
seems that if your contract says “reasonable” the only way forward is to show what they took is unreasonable. Is there an industry standard?

You could spend years and a fortune fighting it and still lose.
 
#18
Long-story short, its your fault not theirs as you signed a contract with them that you should have scrutinised.

Also, if you're not happy with your agency, just move agency once the contract expires. Although, you'll likely find they all make a similar cut.

I find it very hard to believe you're a department head.
 
#19

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