Contract terms, advice required

[dern]

A friend is working for a company on a contract through an agency. This friend has just discovered what market rate is (they've been there a while) for what they do and realise that they are being paid quite a way below it. On further investigation it turns out that the agency is charging the company the going rate and taking 42% where other contractors at the same company are being charged at the same rate to the company but that agency is charging a more normal 20-25% leaving market rate for the contractor.

The contractor going through the greedy agency is coming to the end of their contract and wants (obviously) to switch agencies but their current contract it says that they cannot come back to the company through a different agency for 6 months.

Short of taking 6 months out is there anything this person can do about this contract clause?

Thanks,

Mark

[boiler]

My experience of agencies is that they would probably persue your friend if he were to break that clause - 40% of his salary for 6 months would likely make it worthwhile.

If he has not found out the information legitimately, maybe he could approach the agency he is currently with. They may rather have 25% than nothing. But then again - would he want to walk away if they called his bluff?

The other half of me would say - he signed the contract to do a job, paying an amount of money that he thought acceptable. What everyone else has agreed to work for should be irrelevant. He really should have found out what "market" rates are before he signed the contract.

Andy.

[Hughesie2]

boiler said:

My experience of agencies is that they would probably persue your friend if he were to break that clause - 40% of his salary for 6 months would likely make it worthwhile.`

Actually they would pursue the client, not the contractor in this case...

boiler said:

If he has not found out the information legitimately, maybe he could approach the agency he is currently with. They may rather have 25% than nothing. But then again - would he want to walk away if they called his bluff?

Best course of action i would say, renegotiate at the contract renewal stage, be honest and explain that they've had there 40% for a while now, 15% should keep em happy...

boiler said:

The other half of me would say - he signed the contract to do a job, paying an amount of money that he thought acceptable. What everyone else has agreed to work for should be irrelevant. He really should have found out what "market" rates are before he signed the contract. Andy.

Agreed with 100% bit of a liberty by the agency but thats why they have short contracts, i'd be more worried about his actions if he was half way through a 12 month contract....

[dern]

boiler said:

The other half of me would say - he signed the contract to do a job, paying an amount of money that he thought acceptable. What everyone else has agreed to work for should be irrelevant. He really should have found out what "market" rates are before he signed the contract.

Couldn't agree more and so do they it's just that they like it here (no idea why) and would like to stay but to continue to work on these terms now that they are aware of them would probably not be something I would do.

Thanks,

Mark