Rip off agency. Advice sought.

#21
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.
It's a new firm Darillion...
 

Joker62

ADC
Book Reviewer
#22
I take it that you were being paid the rate that the agency stated that you would be paid at? If so, what ever they charge the customer is between them and the customer, it doesn't affect your daily pay rate and has/had the grand sum of sod all to do with you. Now that you've become head honcho, you can now investigate what the rate to the company is and try to sort it out or as you said go else where. You won't get a penny from the agency from their rate to the customer other than what you were paid as in contracted for, the agency fee is what it is, an agency fee, nothing to do with those contracted by them as long as you were being paid the rate set by the contract.
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.
Looks suspiciously like blackmail to me as in "either pay me some of the wedge and keep the contract or I go elsewhere"!
 
#23
I was offered a job with a previous employer,but as they had a recruiting band on, they would only employ me through an Agency/Ltd Company. Spent £15 quid and then worked for myself charging them a daily rate. Contract came to an end and I now work for the same company on a different project through a 3rd party. I am getting the same pay as before, but I don't think that the guy I am working for is doing it for nothing.
As others have said, you were happy with the rate that the employment agency was paying, and you have little to no comeback.
It is the same in all aspects of life. The middle man/men always take a cut and if you don't like it, try and deal direct with the customer. I would put it all down to experience, but if you really wanted to make some good money, you should have asked to "contract" directly into the company at a lower rate that they were paying, but at a higher daily rate than you were getting.
 
#24
As a lowly paid serf my life is clearly more simple.
 
#25
I try always try to go PAYE as this way you know what your going to get.
But some agencies to like to cream as much as possible, but that is the name of the game!
 
#26
Many years ago (1986) I was between uniformed jobs so I did some Employment Agency work driving HGV 1 & 2's.

Never drove for the same company for more than a few days then moved to another company by the Agency, driving/carrying different loads and gaining in my eyes a bit of different driving experience.

I was offered a full time job by one of the companies I had previously drove for which I accepted.

Employment Agency got ARRSEY and made lots of threats to claim back monies from me i.e. introduction fee's, loss of earning for them etc etc.

I spoke to my new boss who then gave me the responsibility to contact various employment agencies for temporary drivers as and when we required them. (You normally met up with the same Temporary Drivers at the Employment Agencies and got to know them when you dropped off your time sheets etc etc)

Some weeks later my former Employment Agency phoned up my new employers to ask why we had not contacted them for Temporary Drivers, not impressed with my answers.

They then were taking around 15% commission.

A baseball bat and head interface is sometimes the only option.
 

Glad_its_all_over

ADC
Book Reviewer
#27
Suck it up. They pulled a flanker, they've got away with it. As suggested upthread, slowly manage them out of providing staff for you, that's all you can do - you certainly can't use the leverage of threatening to delist them unless they pay you, personally, there's rather an unkind word for that.
 
#28
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.
Did you get the rate you negotiated with the agency? If so, nothing to see here - the rate they negotiate with the customer is up to them.
 

jarrod248

LE
Gallery Guru
#29
Many years ago (1986) I was between uniformed jobs so I did some Employment Agency work driving HGV 1 & 2's.

Never drove for the same company for more than a few days then moved to another company by the Agency, driving/carrying different loads and gaining in my eyes a bit of different driving experience.

I was offered a full time job by one of the companies I had previously drove for which I accepted.

Employment Agency got ARRSEY and made lots of threats to claim back monies from me i.e. introduction fee's, loss of earning for them etc etc.

I spoke to my new boss who then gave me the responsibility to contact various employment agencies for temporary drivers as and when we required them. (You normally met up with the same Temporary Drivers at the Employment Agencies and got to know them when you dropped off your time sheets etc etc)

Some weeks later my former Employment Agency phoned up my new employers to ask why we had not contacted them for Temporary Drivers, not impressed with my answers.

They then were taking around 15% commission.

A baseball bat and head interface is sometimes the only option.
It is in the contract that companies sign with the agency. I think it’s called ‘finders rates’. If they didn’t they risk losing their workers.
 
#30
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.
Possibly also has a hand in the demise of Carillion if the labour costs are out of control in this manner.
 
#31
Write your loss of earnings off as something you have learnt from. Don't try and get it by playing a flanker on your employer or the agency, play this with a straight bat!
What however you can do is say you are looking to go out to tender for a preffered agency, which will suprise the agency that got you the job. Now If they want the business, which the will then they will have to sharpen their pencil.
This will be a quick win for you, your employer will be impressed that you have saved them money on the contract.
 
#32
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.
First rules of contract law my contract law lecturer beat into us:

1. Read everything, if you do not like what is written write on the contract and change it before you sign, make it their problem,
2. Never sue a straw man,
3. Never sue on a point of principle.

Reasonable would have been crossed out in my case. I like fixed numbers.
 
#33
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.

Many moons ago I got to see the agency invoice to the client that I was working for, their bill was exactly the same as my take home pay+100%. I then suggested to the finance director, "Inform the agency that you do not want my services anymore, I will have a weeks holiday, come back and work for you direct, and invoice you weekly, same rate of pay, and you do not have anymore agency fees. I stayed for another 18 months.
 
#34
It is in the contract that companies sign with the agency. I think it’s called ‘finders rates’. If they didn’t they risk losing their workers.
I know I read up on at the time and examined all the paper work send from the Agencies, however as I had driven for a number of other companies since I first drove for the one that later offered me the job, and as I was not employed as a Temporary to Permanent position, the Agency request for payment was ignored by the Boss and the Agency demands for monies from me was dealt with via the Citizen Advice and advice from Employment Tribunal Service.

Needless to say the Agency was not asked by the company to supply Drivers again.
 
#35
As everyone and their brother has said, you accept a rate that's it. If you didn't get them to state their margin in contract it was your choice.
 

Joker62

ADC
Book Reviewer
#36
Write your loss of earnings off as something you have learnt from. Don't try and get it by playing a flanker on your employer or the agency, play this with a straight bat!
What however you can do is say you are looking to go out to tender for a preffered agency, which will suprise the agency that got you the job. Now If they want the business, which the will then they will have to sharpen their pencil.
This will be a quick win for you, your employer will be impressed that you have saved them money on the contract.
He hasn't lost any earnings, he was paid at a specific daily rate, what he's complaining about is how the agency didn't split the 30% they were making on the deal with the customer.
 

napier

LE
Moderator
Kit Reviewer
#37
I used to work for an unnamed Service Company as a consultant and was then asked to come on board as an employee to manage the contract I and others had been working on. Having got sight of the charge out rates to the customer I can assure you that your agency is not one of the worst offenders
 

Glad_its_all_over

ADC
Book Reviewer
#38
I used to work for an unnamed Service Company as a consultant and was then asked to come on board as an employee to manage the contract I and others had been working on. Having got sight of the charge out rates to the customer I can assure you that your agency is not one of the worst offenders
Damn right. Back in the day, when I was using lots of sub-consultants on big projects, it wasn't unknown for the charge-out to differ from what they got by upwards of 100%. The client was happy to pay, the subbie was happy with what he got, my company was happy with what we got. Job jobbed.
 
#39
Did you agree to your day rate and sign a contract.

What the agency charges the client ain’t much to do with you........until you get the inside line and realise they were taking more than you thought
 

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