Can I change agents using the recently new Employment Agency Act?
My client wishes to renew for another 6 months. I have NOT opted out of the new Agency Regs, but I have come to the end of my contract. I would like to switch agencies and therefore increase my rate with the new agency.
Currently I am on site working out of contract (my agency is slow to send out the new one), using my Limited company.
The client is a well known Bank that has a select few Agencies on its PSL. My agency is not one of them and therefore is sub-contracting me through one of the Bank's approved agencies.
My agency charges me roughly 16%, whereas contractors who were direct and now forced into one of the Bank's PSL agencies have had only 4% charged on top of their rates.
I would like to switch from the old agency to one of the PSL ones.
Thus the benefits are:
i) Working for an approved PSL agency of the Bank and not sub-contracting. Thus being more 'in' with the Bank.
ii) Being able to increase my rate by 12% with no increase in my actual rate to the client.
iii) Possibly being able to obtain more favourable clauses in my contract with the new agency (I cannot give any notice in my old contract).
iv) Hopefully getting new contracts on time!
v) I am the only contractor with my line-manager that is with the old agency, changing to a new agency will make life easier for her.
So, how would I go about doing this legally and with the minimum of cost to myself?
Is there not some 8-14 week rule?
And if I have to pay them a change fee, is it the full amount they charge the client that I will have to pay?;
Or only the revenue difference they would make percentage wise (it sort of says this in the contract, but maybe there is regs forcing it)?
And if I must pay is it the full term of the new contract or those weeks stated in the new regulations?
What are the potential risks and downsides?
And yes I do know it's all hypothetical as you do not have my contract to hand in front of you and you do not want to get sued for incorrect financial advice. I am just curious as to my options as I am 'IN' and the new Agency regulations are in place.
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Upset