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 Temp - Perm scaled fees
Author:John
Date:Monday, 25th May 2009 11:06
Views:581 (excluding Digests and RSS feeds)
Category:Fees and Terms of Business
URL:http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=185184

We are about to sign a contract for the exclusive supply of temps for one year to our client and he has proposed that a sliding scale depending on the length of time the individual has worked for them. And that any introduction fee will be refunded if the individual in question does not meet their requirements after a six month probationary period.

Does anyone have any example of such agreements or thoughts for consideration when drafting up such agreements?

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 Re: Temp - Perm scaled fees
Author:Liz
Date:Tuesday, 26th May 2009 11:40
Views:44 (excluding Digests and RSS feeds)
Category:Fees and Terms of Business
URL:http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=185184

Sorry don't understand your query really. Are you talking temp to perm sliding scale, so they pay less the longer the person has been there?

They should be given the option to take someone on for nothing after a certain period of time if they know straight away that it's a temp to perm. Can't remember what this is called sorry; haven't done temps for many, many years.

I wouldn't be doing any refund on temp to perm. If they temp for 4 weeks then the client makes the decision to take them perm based on their opinion. If they get that wrong then they should take responsibility for that.

For enough rebate on straight perm fees, but not temp to perm.

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 Re: Temp - Perm scaled fees
Author:Tom Atkinson
Date:Tuesday, 26th May 2009 12:48
Views:48 (excluding Digests and RSS feeds)
Category:Fees and Terms of Business
URL:http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=185184

Hi John,

Are you an Employment Agency or an Employment Business?
Tom.

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 Re: Temp - Perm scaled fees
Author:Msg 4 Tom
Date:Tuesday, 26th May 2009 13:42
Views:52 (excluding Digests and RSS feeds)
Category:Fees and Terms of Business
URL:http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=185184

Hi Tom,
What are the main differences between an Employment Agency and Employment Business?

Sorry if this seems a silly question.

Need to know.

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 Re: Temp - Perm scaled fees
Author:John
Date:Tuesday, 26th May 2009 14:03
Views:50 (excluding Digests and RSS feeds)
Category:Fees and Terms of Business
URL:http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=185184

Hi Liz,

Thanks for you input.

Yes I mean temp - perm sliding scale as they expect to pay less the longer someone has worked with them as a temp.

I think you're right with regard to not offering a rebate for perm once they've been taken on.

I was just wondering if there was a template of such a contract / sliding scales around that I might use a model when signing up with them?


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 Re: Temp - Perm scaled fees
Author:John
Date:Tuesday, 26th May 2009 14:06
Views:47 (excluding Digests and RSS feeds)
Category:Fees and Terms of Business
URL:http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=185184

Hi Tom,

I was just about to ask you the same question as "Msg 4 Tom".....what is the difference and is there any benefit in working one way or the other?

Most of the individuals we will be supplying the will be self employed and paid upon production of their invoice. We in turn will then invoice our client. Don't know if this makes any difference to what we are deemed as?

John

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 Re: Temp - Perm scaled fees
Author:K
Date:Tuesday, 26th May 2009 14:44
Views:53 (excluding Digests and RSS feeds)
Category:Fees and Terms of Business
URL:http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=185184



Employment businesses and employment agencies are different things:

a business that arranges temporary work with a ‘hiring company’ is legally known as an 'employment business'

an ‘employment agency’ is a business that introduces job-seekers to employers (eg, a recruitment consultant)

In reality many businesses deal with both finding temporary work and permanent employment and the term ‘agency’ is used for employment agencies and employment businesses.

http://www.direct.gov.uk/en/Employment/Understandingyourworkstatus/Agencyworkersandemploymentagencies/DG_10027514


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 Re: Temp - Perm scaled fees
Author:Tom Atkinson
Date:Tuesday, 26th May 2009 18:31
Views:57 (excluding Digests and RSS feeds)
Category:Fees and Terms of Business
URL:http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=185184

Hi John,

K has done an excellent jod re the explanation so I add little more except to say you cannot pay workers as self employed if they work through an Employment Business. In such an arrangement they simply cannot meet the indicators for self employment in IR56.

They might meet the requirements if they worked directly for the end user, took risks and supplied tools (other than hand tools) and materials, but when they work through an agency (an Emplyment Business in legal terms) they must go on PAYE or work through a company and be involved (or not) with IR35 rules etc.

There are some special exceptions for doctors in the medical sector but you won't get away with it anywhere else. Talk to your tax man so that you don't end up with a big tax bill after the "self employed" workers have long since vanished.

Protect yourself and good luck. Tom.

Hope that helps. Tom.

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