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Feel a bit conned by recruitment agency over contract pay


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Hi All,

 

Last month I had a call from a well known recruitment agency asking me if I was interested in a 6 month contract, they then said the hourly rate was x amount which was slightly less than I would normally want but they said they would try for a bit more if possible. I had an interview a couple of days later and the next day had a call from the agency with the good news of an offer and the extra amount per hour. Great!.

 

They said they would like me to speak to an umbrella company about how I would be paid, I'd never had experience of being paid this way before so was a bit dubious. I asked what the difference would be and was told I would be paid slightly less per hour PAYE and can claim my travel and food expenses if I used the umbrella company. I agreed to sign up with the umbrella company and took the job. After getting my payslip I now realise that the hourly rate I was expecting was before paying the umbrella company fee, the employers NIC and includes holiday pay (28 days pro rata). When I deduct all of these from my hourly rate i'm actually getting about 20% less than I was expecting. I do manage to pull back enough to cover the employers NIC with expenses but the fact that my net pay is less than I would have expected plus I won't get paid for any of the bank holidays that are approaching or any holiday I make like is worrying.

 

I've sneaked a look at the invoices being sent to the company i'm contracted at and the agency are charging just over 50% markup on my hourly rate, I could understand this if they had to allow for employers NIC, holiday pay etc but they don't.

 

I'm thinking about giving the agency a call and asking for the extra per hour to at least cover the holiday allowance but just curious if they would deduct this from the margin or approach the client?

 

Bit peeved off to be honest, both with myself for being to eager to accept and and the recruitment agent for not being entirely upfront before I accepted the job.

 

Any advice would be much appreciated

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Hi HB,

 

Thanks for your reply. Oddly I can't find anything in writing between myself and the agency, not even a contract of employment laying out the terms, all discussions regarding rates were over the phone or face to face. I'm going to check with them today and request a copy if there was one.

 

Thanks

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the mark up is because they have to employee staff, run an office, tout for business, employ contract lawyers, depending on the contract reimburse fees for staff who go AWol or steal,. etc etc.. 50% is not uncommon nor unreasonable.

 

but you do need to check your paperwork!

Never assume anyone on the internet is who they say they are. Only rely on advice from insured professionals you have paid for!

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