Rip off agency. Advice sought.

#41
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

Exactly.


It’s a rip off. We discussed it at contract start, they told me (verbally) it was in the 10-15% range as standard.


Obviously I’m extremely pissed off at being taken for a mug, but I’m not suggesting they’ve defrauded anyone.
 
#42
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.


Until you get two guys doing the same thing, one on £200 a day t’other on £135.


Imagine if Sergeant A, Royal Blankshires and Sergeant B, Royal Loamshires* were being paid such s diferent whack. All hell would break loose.



* due to be amalgamated in to the Duke of Basingstoke’s Royal Fictional Regiment.
 
#43
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

Thanks.

Actually a guy I inherited on my last job was on £250 a day, his equivalent on the other sites on £350-£400. I got permission to put everyone under £350 up, as I wanted to move them amongst the sites and big disparities are a sure fire cause of trouble.

I brought XXX in and said ‘good news mate, I got you a jump in your rate. Your going on to £350’

He was chuffed up, said ‘hey that’s great! Thanks! Wow, a couple of hundred a month!’


I did a double take and said ‘no mate.... more like £2k’



Turns out his agency had blagged him he was on some Government scheme (he’d come out of the steel industry in S Wales) and were slipping him £250 A WEEK.

Billing us for him- £295 daily.


He’d been there months.


Cheeky bastards threatened me with court when I rang up and told them to F O.
 

jarrod248

LE
Gallery Guru
#44
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.
A GP I know liked a locum, employed her, was stung for I think somewhere between £20-30k, was furious, told him, everyone knows this, what do you pay your practice manager for, she should know this.
 
#46
Thanks.

Actually a guy I inherited on my last job was on £250 a day, his equivalent on the other sites on £350-£400. I got permission to put everyone under £350 up, as I wanted to move them amongst the sites and big disparities are a sure fire cause of trouble.

I brought XXX in and said ‘good news mate, I got you a jump in your rate. Your going on to £350’

He was chuffed up, said ‘hey that’s great! Thanks! Wow, a couple of hundred a month!’


I did a double take and said ‘no mate.... more like £2k’



Turns out his agency had blagged him he was on some Government scheme (he’d come out of the steel industry in S Wales) and were slipping him £250 A WEEK.

Billing us for him- £295 daily.


He’d been there months.


Cheeky bastards threatened me with court when I rang up and told them to F O.
If you had either taken him on directly, or directed him to another agency/third party and used him, they most likely would have a case depending on the contract, the REC industry standard T&C's certainly has clause in there dealing with both direct and indirect introduction fees along with a specified time period as to how long the liability to pay a fee would last (that does depend on the manor the person was employed and how upfront you were)
Normally, the fee would be a percentage of the yearly salary if known, or somewhere in the region of 250 times the hourly salary, or an extended period of hire.

The agency concerned might well take the view that its more beneficial not to peruse a claim either due to lack of evidence, or because they wish to maintain the contract, so they'll take the hit.

Personally speaking, I'd of sued you into next week for breech of contract
 
#47
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.
The agency was wrong too make threats to you in regards to repaying fees, however they most likely had a claim against the company that employed you for breech of contract, transport companies are right shits for poaching drivers.....and for some odd reason, always claim ignorance when they receive the bill.
 
#48
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.
Almost certainly a Breach of Contract by both parties.
 
#49
Almost certainly a Breach of Contract by both parties.
Oddly enough, not as standard - the breech would be with the employer, not with the employee, there's not a lot you can do with a agency worker if he solicits employment during a placement.
 
#50
A GP I know liked a locum, employed her, was stung for I think somewhere between £20-30k, was furious, told him, everyone knows this, what do you pay your practice manager for, she should know this.
Remember, it takes seven years to train a Doctor, but only three months before their staff think they are.
 
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#51
Thanks.

Actually a guy I inherited on my last job was on £250 a day, his equivalent on the other sites on £350-£400. I got permission to put everyone under £350 up, as I wanted to move them amongst the sites and big disparities are a sure fire cause of trouble.

I brought XXX in and said ‘good news mate, I got you a jump in your rate. Your going on to £350’

He was chuffed up, said ‘hey that’s great! Thanks! Wow, a couple of hundred a month!’


I did a double take and said ‘no mate.... more like £2k’



Turns out his agency had blagged him he was on some Government scheme (he’d come out of the steel industry in S Wales) and were slipping him £250 A WEEK.

Billing us for him- £295 daily.


He’d been there months.


Cheeky bastards threatened me with court when I rang up and told them to F O.
So you decided to pay a guy £350 a day that you were billing out at £295 a day?

Was there the smell of sulphur nearby?
 

jarrod248

LE
Gallery Guru
#52
Remember, it takes seven years to train a Doctor, but only three months before their staff think they are.
Well a practice manager should know what she's signing and would've expected such a clause and I think really he should. He paid and said he didn't want to see that GP again, can't see why he should blame that GP after he'd poached her.
 
#53
Reasonable would have been crossed out in my case. I like fixed numbers.
If I took 30% of everything you earned, I'd consider it very reasonable.
 
#54
A mate used to work for an agency , he reckoned they generally added 40% to what workers would accept.
 
#57
In the late 80s/early 90s typical agency mark up was 12 - 15%. Towards the back end of the 90s, there was a lot of competition amond the agencies and employers started to realise that they could get a better deal by going "single source". At that point, agency mark up fell in a bidding war which killed off some of the better agencies in favour of the Tesco agencies who just wanted to sell 20 engineers in at 7% mark-up.

The down side of this was that a lot of the better agencies folded or else pulled out of certain sectors completely and the employers instead got bombarded with reams of CVs from people who were not suited but had one or two key words on their CV. Basically it turned into a race to the bottom where the only factor was how many people you could sell into a client. I have seen some absolute classics of square pegs being hammered into round holes only to be hoofed within a couple of months when the employer realised their mistake. Never mind the creative altering of CVs which became an art form in the 90s.

I was once sent to an interview where the agency had forwarded my CV, but it was clear when I got there that the job was nothing like what I had been told, and the client was quite upset at the waste of time. After 15 minutes, the interviewer showed me "my" CV, which was my CV, but altered almost beyond recognition by the agency. Need I say that I ensured that I never dealt with them again and that they removed my details from their system (sent a "cease & desist") letter.

Back on topic, typical current rates for longer term contracts are between 8 - 12%. This may be higher for short term contracts with lots of personnel turn over (up to 25% not unknown).
 
#58
If I took 30% of everything you earned, I'd consider it very reasonable.
Mike of Mikes Carpets (Leeds) fame once said, "the trick is to get everyone to give you a quid, then you'd be a millionaire".
 
#59
No, sorry I must have explained it wrong.
We were paying £295 to the agency, daily.


They paid him £250 a week.
So, you're claiming that they were paying him at or below minimum wage then, for a highly qualified job that commands a fee close to £300 a day, either they were the most productive agency ever.....or you're talking pure crap
 
#60
So, you're claiming that they were paying him at or below minimum wage then, for a highly qualified job that commands a fee close to £300 a day, either they were the most productive agency ever.....or you're talking pure crap

No, they’d blagged him about some Welsh Government work programme, where he got £250 a week (that’s more than minimum isn’t it? This was 2012) and was meant to get training. They had enrolled him, and billed us, on some watered down distance learning thing actually. Cost under a grand.
 

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