Changing Contract Rates Retrospectively
Discussion
I think I know the answer but just feel like venting a bit.
I am contracted through the Angolan subsidiary company of a Portuguse agency, working in Angola.
The oil industry is going through a bad time and everyone is taking cuts, well those of us fortunate enough to still be working, the company the agent contracts us out to has told the agent they have to reduce their invoice by 30%, this was advised some months ago, the agent has yesterday sent out a news letter telling everyone that they will be getting a rate reduction of 35% and a similar reduction of travel allowance. I understand that some of the agents costs cannot be reduced (visa applications for one) so a reduction of more than 30% was expected but I am a bit hacked off at 35% and have asked how that figure was determined.
What I am most pissed off about though is we have been told the reduction will start from 1st Aug, so days I have already worked will be at the lower rate, the agent will claw back the excess over a few months they say.
My contract has a 30 day notice of cancellation so my view is that changes should also have 30 days notice and think the reduction should start 30 days after they submit a new schedule of contract. An added complication is that the last schedule of contract I have is for a 12 month period ending 31st Dec 2015.
So, is it worth trying to fight this given that it would probably be under Angolan law rather than EU law ?
Should I just be glad to still have a job and get on with it ?
I am contracted through the Angolan subsidiary company of a Portuguse agency, working in Angola.
The oil industry is going through a bad time and everyone is taking cuts, well those of us fortunate enough to still be working, the company the agent contracts us out to has told the agent they have to reduce their invoice by 30%, this was advised some months ago, the agent has yesterday sent out a news letter telling everyone that they will be getting a rate reduction of 35% and a similar reduction of travel allowance. I understand that some of the agents costs cannot be reduced (visa applications for one) so a reduction of more than 30% was expected but I am a bit hacked off at 35% and have asked how that figure was determined.
What I am most pissed off about though is we have been told the reduction will start from 1st Aug, so days I have already worked will be at the lower rate, the agent will claw back the excess over a few months they say.
My contract has a 30 day notice of cancellation so my view is that changes should also have 30 days notice and think the reduction should start 30 days after they submit a new schedule of contract. An added complication is that the last schedule of contract I have is for a 12 month period ending 31st Dec 2015.
So, is it worth trying to fight this given that it would probably be under Angolan law rather than EU law ?
Should I just be glad to still have a job and get on with it ?
Edited by Corpulent Tosser on Friday 7th October 09:23
I think you might struggle to find an expert on Angolan law here, so you probabaly won't get much useful advice on the legal side. Perhaps contact an Angolan employment lawyer?
"Should I just be glad to still have a job and get on with it ?"
Can you get a job doing the same or similar, at the pay level you want else where? If so, why ask the question. If not, suck it up.
"Should I just be glad to still have a job and get on with it ?"
Can you get a job doing the same or similar, at the pay level you want else where? If so, why ask the question. If not, suck it up.
esxste said:
Can you get a job doing the same or similar, at the pay level you want else where? If so, why ask the question. If not, suck it up.
Little chance of getting a job anywhere else at the moment given the state of the oil industry, so ultimately I have little choice but accept it, or just quit working which is always an option.Why ask the question ? Well as I said in the OP I just wanted to vent a bit, sorry for the lack of ranting, poor form I know.
Your contract is between you and your employer, both sides need to agree to a proposed change to it.
Unless your contract says your employer can decide what to pay you whenever they like to change it then it looks like they want to make a variation to what you have already mutually agreed.
You don't have to agree to it but unfortunately employers usually rely on employees needing a job to force changes through, as they have in your case it would seem.
You can either agree to it and carry on at the reduced rate or disagree and leave their employ.
If they are the type of employer that will do this then you can always look for alternative employment; when you secure it leave. Perhaps even consider varying the notice period and refer them back to the one-sided variance your employer enjoyed in changing the rate of pay when you give them no notice of your departure.
Unless your contract says your employer can decide what to pay you whenever they like to change it then it looks like they want to make a variation to what you have already mutually agreed.
You don't have to agree to it but unfortunately employers usually rely on employees needing a job to force changes through, as they have in your case it would seem.
You can either agree to it and carry on at the reduced rate or disagree and leave their employ.
If they are the type of employer that will do this then you can always look for alternative employment; when you secure it leave. Perhaps even consider varying the notice period and refer them back to the one-sided variance your employer enjoyed in changing the rate of pay when you give them no notice of your departure.
Corpulent Tosser said:
Not looking for legal advice, I guess maybe just looking for confirmation that it is futile fighting it.
Corpulent Tosser said:
I think I know the answer but just feel like venting a bit.
I am contracted through the Angolan subsidiary company of a Portuguse agency, working in Angola.
The oil industry is going through a bad time and everyone is taking cuts, well those of us fortunate enough to still be working, the company the agent contracts us out to has told the agent they have to reduce their invoice by 30%, this was advised some months ago, the agent has yesterday sent out a news letter telling everyone that they will be getting a rate reduction of 35% and a similar reduction of travel allowance.
No useful advice for you, but in my experience of agencies the reality is probably more along the lines of the agency recognising that the industry is on its arse and decided this is the perfect opportunity for them to increase their margin by telling you their client will no longer pay the current rates when in fact nothing has changed = kerching! Unfortunately if you have all your eggs in that one basket with no opportunities elsewhere and also a queue of people behind you ready to jump in your place then you don't have any other choice but to suck it up or source work in a different industry. I am contracted through the Angolan subsidiary company of a Portuguse agency, working in Angola.
The oil industry is going through a bad time and everyone is taking cuts, well those of us fortunate enough to still be working, the company the agent contracts us out to has told the agent they have to reduce their invoice by 30%, this was advised some months ago, the agent has yesterday sent out a news letter telling everyone that they will be getting a rate reduction of 35% and a similar reduction of travel allowance.
All that jazz said:
No useful advice for you, but in my experience of agencies the reality is probably more along the lines of the agency recognising that the industry is on its arse and decided this is the perfect opportunity for them to increase their margin by telling you their client will no longer pay the current rates when in fact nothing has changed = kerching! Unfortunately if you have all your eggs in that one basket with no opportunities elsewhere and also a queue of people behind you ready to jump in your place then you don't have any other choice but to suck it up or source work in a different industry.
I work closely with the client and it is definite that they client has told all agents providing contractors that their overall invoice must be reduced by 30%.You are correct that there would be a queue of people waiting to take the position so I will just have to suck it up for now, I have though emailed the boss of the agency asking for an explaination of how -30% to the agent became -35% to the contractors, and a reminder of the contract notice period.
Won't do any good other than make me feel better that I have tried.
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