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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 12680
Experience:  Qualified Employment Solicitor
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I was wondering if you can help us with a dispute over an

Customer Question

Hello,I was wondering if you can help us with a dispute over an invoice and how much we can charge?
Submitted: 5 days ago.
Category: Employment Law
Expert:  Ben Jones replied 5 days ago.

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

Expert:  Ben Jones replied 5 days ago.

Please can you provide some more information?

Customer: replied 5 days ago.
We have just started a small independent employment agency and we are supplying staff to a site via another larger agency known as the "Vendor". They took staff on behind our back which they admitted to and they have to pay a fee, however they are disputing value of the invoice. As in their contract with us it states that we are entitled to charge 100 times commission. However their contract does not define what commission is, so we invoiced at 100 times the hourly charge rate. (Please see below extract from contract:14. Transfer Fees and Introduction Fees 14.1. Once eight weeks has elapsed from the commencement of an Engagement, if the Vendor agrees to employ or make use of the Temporary Resource in any capacity whether temporary, permanent or self-employed otherwise than directly through the Supplier then the Vendor may elect to either: 14.1.1. provide written notice and continue to engage the Temporary Resource on the same terms as previously agreed for a period of four weeks and no further fee shall be payable after the end of that period; or 14.1.2. pay an Introduction Fee equal to 100 times the commission for the Temporary Resource as set out in Schedule 2. VAT is payable on the entirety of any fee due. 14.2. The Supplier will only assert its rights under clause 14.1 to receive a fee if the Temporary Resource is employed or made use of by the Vendor within the Relevant Period. 14.2.1. If the Hirer wishes to Engage a Temporary Resource within the Relevant Period, the Hirer shall be liable to either:an extended period of hire of the Temporary Resource being 12 weeks during which the Hirer shall pay the current hourly charge to the Supplier pursuant to Schedule 2 for each hour the Worker is so employed or supplied and at the end of which the Worker shall transfer without charge; or 14.2.2. a Transfer Fee to be calculated as follows: 12% of the Remuneration applicable during the first 12 months of the Engagement or, if the actual amount of the Remuneration is not known then the current hourly charges in accordance with Schedule 2 multiplied by 225. No refund of the Transfer Fee will be paid in the event that the Engagement subsequently terminates. VAT is payable on the entirety of any fee due. 14.3. The Supplier will only assert its rights under clause 14.3 to receive a fee if the Temporary Resource is employed or made use of by the Hirer within the Relevant Period.
Expert:  Ben Jones replied 5 days ago.

OK thank you for your response. Leave it with me for now and I will review the relevant information and laws and will get back to you as soon as I can. Please do not respond to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you

Expert:  Ben Jones replied 5 days ago.

Thanks for your patience. Having looked around, there is actually no specific rate for such fees and it will vary greatly based on the industry, the role, the level, the pay, the volume of business you do with them, etc. There are many, many variables that would come into it. So it would be impossible to say an amount of £X is reasonable, whereas an amount of £Y is not. So not sure exactly how to give you an answer because there is nothing in law I can refer to in order to tell you ‘this is what you can charge’…

Customer: replied 5 days ago.
If i go off a charge rate that we charge them, i am just wondering if there is any way for me to work out any sort of commission?
Expert:  Ben Jones replied 5 days ago.

Do you know what the norm in the industry is? Have you perhaps had a level of commission with previous clients or have you spoken to other companies in a similar position to see what commission they may charge?

Customer: replied 9 hours ago.
generally the norm would be 10% of the candidates full time salary but this isnt for a full time role so it is quite hard to work out