Agency Fees 2022

Hi All

Does anyone have an accurate guide on what agencies are charging on top of our rates?
thanks

shpro:
Hi All

Does anyone have an accurate guide on what agencies are charging on top of our rates?
thanks

The same as it’s always been…around 35-40% more than your PAYE rate which after you take off employers NI (13.08%), apprenticeship levy (0.5%), statutory holiday pay (12.07%) and employers workplace pension contribution (3%) that all comes out of that extra they charge means they’re making around £1-£2/hr out of you. So if they’re paying you £10/hr and charging you out at £14/hr they’re making about £1.18/hr. And out of that money they have all the operating costs of their business to meet, all the staffing, the cost of running their offices, the vehicles their sales staff use for visiting clients etc. They also have to pay you next week even though it may be weeks or months before they get paid for the work you did.

If you think it’s a breeze and they’re making an absolute fortune like the less informed drivers do because they only see what the agency is charging and the hourly rate they get without taking into account the above then feel free to set your own up and see how you get on.

Conor:

shpro:
If you think it’s a breeze and they’re making an absolute fortune like the less informed drivers do because they only see what the agency is charging and the hourly rate they get without taking into account the above then feel free to set your own up and see how you get on.

Agencies often charge the client a minimum of 10 hours for each shift, but only guarantee the driver 8 hours. If the agency is charging the client £30/hour, that’s a £60 bonus.

Some agencies regularly make “mistakes” in the drivers’ wages. These agencies quickly work out which drivers check their wages, and which drivers don’t.

With holiday pay, you use it or lose it. Don’t take all your holiday by the end of the tax year, and you lose it.

This is what I saw a while ago not sure if still true.

The agency were paying me £12 p/h
The agency were charging the company around £25 p/h

Now that drivers can make £20 p/h pretty regularly not sure that the difference is so great. Would be very surpised if the agencies are charging £40-50ph. At that rate your probably better off just doing your own in house agency.

I posted this on April or so last year .
Might have gone up a bit since then

carlston49:
With holiday pay, you use it or lose it. Don’t take all your holiday by the end of the tax year, and you lose it.

I nearly lost 10 days hol because I thought it ran until the end of the tax year but it turned out it was until the end of the calendar year. Randomly called around Dec 20th to inquire about how many days I have and just btw asked if it’s until April. They wouldn’t have told me had I not thought to ask.

Where I work lately seem to be doing day hire/rates for Davies turner xpo etc.
Maybe it’s cheaper than them using agency staff .

edd1974:
I posted this on April or so last year .
Might have gone up a bit since then

Enterprise agency rates - THE UK PROFESSIONAL DRIVERS FORUM (INTERACTIVE) - Trucknet UK

Interesting that Sundays are charged at double time, this definitely doesn’t get passed on to the driver in most cases they might get an extra few quid an hour for sure.

shullbit:

edd1974:
I posted this on April or so last year .
Might have gone up a bit since then

Enterprise agency rates - THE UK PROFESSIONAL DRIVERS FORUM (INTERACTIVE) - Trucknet UK

Interesting that Sundays are charged at double time, this definitely doesn’t get passed on to the driver in most cases they might get an extra few quid an hour for sure.

It’s cut the first bit off but it says a night rate £2.60 charge applies from 18 00 to 06 00 not what I’d class as nights but how.many drivers get paid extra for working.past 18 00

There can be no definitive answer to your question as each agency company is an individual business that will charge whatever amount it chooses & can obtain in the current market.
The replies received are insightful; they are quite an accurate depiction of what goes on.

If you are looking to maximise your pay per shift from an agency then you need to make them aware of your required rate of pay; start high & let them negotiate you down a bit if you wish.
You can only do that though if you are prepared to be not working whilst they use up all the available workers with lower pay demands.

If you are looking to maximise your yearly earnings then you need to join an agency & demonstrate your exceptional employee status then negotiate your rates up.

If you are looking to set up an agency then you can charge whatever you want; how much work follows will have some bearing on how close that price is to the current local market rates. However I can assure you there will also be some desperate situations that need filling which will provide some market beating rates.

I wish you luck & hope more drivers will become mercenary in their pay demands whilst this rare opportunity is available.

edd1974:
Where I work lately seem to be doing day hire/rates for Davies turner xpo etc.
Maybe it’s cheaper than them using agency staff .

No they’re paying day rates so they can guarantee that they have lorries available to move the loads when they need them moving. If they pay a day rate to a subbie then they’re guaranteed that subbie isn’t going to be doing other work which may impact their ability to move the loads your company needs moving to be delivered when it needs to be.

edd1974:
It’s cut the first bit off but it says a night rate £2.60 charge applies from 18 00 to 06 00 not what I’d class as nights but how.many drivers get paid extra for working.past 18 00

Night rate where I am basically applies to anyone who starts after dinnertime so start at 2.30pm which is the earliest “night run” start time you’re on night rate the full shift even though you’ll be finished before 11pm.

thanks to you all for the feedback
really, really helpful

Im not afraid of negotiating and I’ve already told the 4 agencies I signed up with that im chasing the money
So I will go wherever and work whatever shifts no matter how rubbish the hours but I want compensating for it and it seems to be working
Ive told the jokers paying £13 an hour I wouldn’t even contemplate driving for that
Seems £18 p/h is the base and then im asking for up to £25.

shpro:
thanks to you all for the feedback
really, really helpful

Im not afraid of negotiating and I’ve already told the 4 agencies I signed up with that im chasing the money
So I will go wherever and work whatever shifts no matter how rubbish the hours but I want compensating for it and it seems to be working
Ive told the jokers paying £13 an hour I wouldn’t even contemplate driving for that
Seems £18 p/h is the base and then im asking for up to £25.

Good.
If you can get that now in (quiet) January you should be able to squeeze more later in the year as things pick up.
Also consider negotiating for some of your pay to be converted to tax free meal allowance & no deduction for breaks etc.