Do recruitment agencies take a cut?

[Morba]

The rate is irrelevant and my original point still stands.

You, as a temporary worker, will never see that admin fee that the agency will take as their cut for having you work through them. It doesn't factor into your hourly wage and you wouldn't get paid it for approaching the company directly.

Your hourly rate will be fixed, your NI and holiday pay will be a percentage of that and once all those things are taken into account, the agency will either get the rest - assuming an overall hourly budget has been set and will be paid regardless - or they'll charge an appropriate percentage or flat fee.

In your case the agency who initially put your forward were being greedy and lost out. Horses for courses though really - they obviously had their reasons for standing their ground.

Interestingly, they'd probably have every right to bill the client for a 'finders fee' as while you ended up working through a different agency, it was the first one who introduced you and you should therefore be 'owned' by them.

I never said it would be from my hourly/daily rate. I also never said that I would get paid that extra by going direct to the company, so no idea what you are on about there.
My hourly/daily rate was just that. Nothing was taken from it, no NI or tax because I wasn't an agency worker, I was a contractor.

Also it wasn't the first that introduced me, my CV was submitted by more than 1 agency, both CVs reached the client. The rate submitted was the same for both, but that was just my rate not the cut on top of that.

 

[glitch]

I never said it would be from my hourly/daily rate. I also never said that I would get paid that extra by going direct to the company, so no idea what you are on about there.

You quoted a point I'd made about an agency's 'cut' not being taken into consideration as part of the hourly rate a worker would receive.

Why rubbish my suggestion if you seem be agreeing with me?!

My hourly/daily rate was just that. Nothing was taken from it, no NI or tax because I wasn't an agency worker, I was a contractor.

Wrong.

Your NI and holiday pay would have been part of your hourly rate; you just don't see the breakdown as a contractor.

Effectively you get paid exactly what an agency would, minus the admin fee.

 

[Bear]

Wrong

Your NI and holiday pay would have been part of your hourly rate; you just don't see the breakdown as a contractor

What garbage, as a contractor your rate is just that, NI and holiday pay doesn't even come into it. There is no breakdown.

 

[Morba]

Wrong.

Your NI and holiday pay would have been part of your hourly rate; you just don't see the breakdown as a contractor.

Effectively you get paid exactly what an agency would, minus the admin fee.

Ok

 

[FidelZastro]

When I place contractors, I take a cut (usually 15-20%), but at least my company pays the contractors within a couple of days - way faster than the companies pay us. For permanent placements, where you are employed directly by the end client, there usually is a on-time-fee for the hiring company of 15-30% of your annual gross.

Everything else sounds really dodgy to me o.O

 

[Bear]

When I place contractors, I take a cut (usually 15-20%), but at least my company pays the contractors within a couple of days - way faster than the companies pay us.

Thats because as a supplier you are probably being paid 30 days end of month, where as a contractor is being paid weekly seeing as they can usually be got rid of within a weeks notice.