Comments: Pitfalls of working with recruitment agencies like Spherion
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I have been a contract programmer now for over 10 years. I have worked for numerous agencies in the UK and in Australia. I have also developed numerous relationships with companies that I work for directly from time to time. Up until recently I have always thought that the most secure course of action for me getting work was to go through a recruitment agency. Generally less money, but more secure was my train of thought. I had beleived that in return for them taking a fee each payday that I would be protected in case the client went into liquidation, that the worst that could happen if the contract fell though after I started was that I would get at least 4 weeks notice. However, I soon learned early this year exactly how much support a company like Spherion gives its associates. I was recruited by them to work on a large project in Australia. Two months into a three month contract the client went belly up and, without any warning, we were told not to come into work next day. We were paid by the agency up until that day but were told that we were not entitled to any payment in lieu of notice. I am currently disputing that position in court, Spherion saying that because I did not produce timesheets during the period I claim I should have been serving notice then I am not entitled to any pay !!?? A bit hard to produce timesheets when the client has ceased to exist !! Anyway, I believe they have closed all loopholes in thier contract now and you are not even left with any recourse to claim payment in lieu of notice if the client decides to dump you or goes into liquidation suddenly. Also raised with my discussions with them was the fact that most contracts don't discuss or allow for a minimum number of hours you can claim. So, in theory if the company wishes to cut back your hours to 1 day per week, then according to your contract you can only claim that 1 day with no expectation to more !!!?? So! If a recruitment agency offers no protection from small, medium (and these days large) companies that can go bankrupt at a moments notice, if the recruitment agency cannot guarentee you a minimum number of hours to work and if you are not entitled to any notice or warning that your income may be terminated, what is the point of using them? The main entity that benefits from the recruitment agency is the employer! The agency makes the employers life easier by managing the recruitment process for them; a valuable service to be sure. Except for the initial placement with the firm, the poor old contractor
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I have been a contract programmer now for over 10 years. I have worked for numerous agencies in the UK and in Australia. I have also developed numerous relationships with companies that I work for directly from time to time. Up until recently I have always thought that the most secure course of action for me getting work was to go through a recruitment agency. Generally less money, but more secure was my train of thought. I had beleived that in return for them taking a fee each payday that I would be protected in case the client went into liquidation, that the worst that could happen if the contract fell though after I started was that I would get at least 4 weeks notice. However, I soon learned early this year exactly how much support a company like Spherion gives its associates. I was recruited by them to work on a large project in Australia. Two months into a three month contract the client went belly up and, without any warning, we were told not to come into work next day. We were paid by the agency up until that day but were told that we were not entitled to any payment in lieu of notice. I am currently disputing that position in court, Spherion saying that because I did not produce timesheets during the period I claim I should have been serving notice then I am not entitled to any pay !!?? A bit hard to produce timesheets when the client has ceased to exist !! Anyway, I believe they have closed all loopholes in thier contract now and you are not even left with any recourse to claim payment in lieu of notice if the client decides to dump you or goes into liquidation suddenly. Also raised with my discussions with them was the fact that most contracts don't discuss or allow for a minimum number of hours you can claim. So, in theory if the company wishes to cut back your hours to 1 day per week, then according to your contract you can only claim that 1 day with no expectation to more !!!?? So! If a recruitment agency offers no protection from small, medium (and these days large) companies that can go bankrupt at a moments notice, if the recruitment agency cannot guarentee you a minimum number of hours to work and if you are not entitled to any notice or warning that your income may be terminated, what is the point of using them? The main entity that benefits from the recruitment agency is the employer! The agency makes the employers life easier by managing the recruitment process for them; a valuable service to be sure. Except for the initial placement with the firm, the poor old contractor
I used to use contracting agencies, but stopped for some of the reasons you have specified. Full time as a consultant with a consulting company provides me with the best of both worlds :) During my contracting daze, my contracts always specified a minimum number of hours, 40, that were to be worked. In addition to that, I always ensured that termination of the contract was a two way street. If the company wanted the right to stop work immemdiately, then I would always require the same right. If they wanted a two weeks notice to terminate, than I would ensure that the contract gave me the right to leave with two weeks notice. At one place that I was working on a development project, one day out of the blue, the entire project was shut down. All the project managers, lead programmers and such where escorted out the door with their packages. There I was, left to sweep up and play solitaire for two weeks cause it was in the contract. Chris Meech