UK – FCSA reports that employment agencies are trying to cut posting rates due to reduced NI rates


November 11, 2022

The UK-based Freelancer & Contractor Services Association announced in a LinkedIn position that it has received reports from its members that some employment agencies are trying to reduce posting rates to workers currently engaged through them.

The rationale reported by the agencies for this is that since national insurance contribution rates have fallen, so should the allocation rate.

“Our view is clear on this: If agencies didn’t raise rates when the initial NIC increases went into effect, then how can they have the nerve to try to lower them now?” We did not see grant rates increase when the additional NIC increases occurred and we would not expect to see grant rate decreases now,” the FCSA said. “Furthermore, if there is nothing in the contract with the umbrella or the contractor that allows them to adjust assignment rates at will, then that strikes me as a) borderline illegal and b) morally wrong. “

The Deputy Director General of the Confederation of Recruitment and Employment also replied to the message. ” It is unacceptable. Acas (Advice, Conciliation and Arbitration Service) can still provide support and advice to workers on any specific issue, but in addition the REC and TUC have produced a complete guide explaining the rights of agency workers.

The guide explains the employment rights available to a temporary worker as well as the rights under the Temporary Worker Regulations (2010).

Fred Dures, founder of PayePass, said The independent informant“If this actually happens, it will be interesting to understand which part of the supply chain is driving it – the agencies or the end customers. shady and justify the legal basis for the reduction in mission commission.Apart from not increasing the amount that workers are paid when NICs increase, you have to wonder what is happening in light of the additional paid time off that contractors will receive due to the Harpur Trust Judgment? Agencies and end customers are rather quiet about this.

Recruitment industry analysts have contacted the FCSA for further comment. The Association said it had nothing further to add.


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