Agency paying less than agreed hourly rate in new PAYE role

[HangryBrickShark]

I started a new temp freelance role a month ago as PAYE. The agency rang me out of the blue as they'd seen my cv online. The rate of pay they were offering was not acceptable to me so the agency rep agreed verbally to pay me x amount per hour which was in line with the experience I had. I was interviewed in person by the client and offered the job a few days later. The client had agreed the rate of pay.

The agency sent me a job confirmation, showing address of place of work, hours and hourly rate which was £4.50 below what had been agreed.

I spoke to the rep immediately who said she would be amending the rate to what we had agreed and it had been sent in error. Because I was doing a shift that afternoon at at another job I didn't have time to chase a new confirmation and then duly forgot about it.

Roll on four weeks and I have found to my horror that I have been paid £4.50 an hour less than agreed so aporoached my rep who sent me an email agreeing the rate I had negotiated. I spoke to payroll last week after receiving pay at the lower hourly rate and one of the payroll staff tried to imply that the difference in pay was due to holiday deduction, Tax, Employers NIC (being PAYE its only employees NIC I should pay) and pension. I said I'd not agreed to a pension and it doesn't normally kick in for 12 weeks anyway and I dont paye Employer NIC as I'mnot umbrella. None of these things other than employees NIC show as deductions on my payslips. Besides which the difference is about £164!

I sent an email this morning to both the chap from payroll and my rep but haven't heard anything back yet as it'sa bit soon. As I have the email from the rep saying the rate of pay is £4.50 more than I'm getting I assume there can be no dispute. I'm owed about £450 back pay. I’ve requested confirmation in writing of my amended hourly rate, a contract and back pay paid into my bank account ASAP.

I took this job knowing I was going to be earning on average £100 per week less than previous roles I'd undertaken but its significantly more than that, its turning out to be £266 a week less due to the incorrect amount I'm being paid.

What should my next steps be if they dispute all this?

Anyone please?
The director of the agency is looking at it now but I spoke to him after I'd finished work today and he's saying that the rate of pay is correct and then tried to blind me like the other guy saying I'm inside IR35 which I am but this isn't relevant anyway. I'm PAYE. Being "inside IR35" via PAYE means HMRC considers you an employee for tax purposes. Your fee-payer (client, agency, or umbrella company) must deduct Income Tax and National Insurance via Pay As You Earn (PAYE) before paying you, mirroring a permanent employee's deductions. None of which I'm disputing. But I am disputing my hourly rate.

He's asked me to give him 24 hours to look at the figures but its not rocket science. They've not carried out their obligations. Period.

Can't give advice as I have no idea. I hope u get things sorted OP

Ensure you keep everything in writing, sounds like you are doing this anyway but i've heard this countless tines where things are agreed verbally and not honoured but thankfully you have an email agreement!

Don't let anyone distract from the original point like they have tried with IR35 and keep reiterating what the original issue is. They may say they cant backpay either and may have to be added to next months pay, this is usually never true and can normally always be sent as an 'out of cycle' payment.

I've done PAYE for agencies as freelance in the past and never been a great experience sadly.

Thank you. They are just distracting from the issue and I'm glad I'm not the only one who can see it. I'm rubbish at sticking up for myself and kind of know they will get there own way.

It doesn't help that I love the job, compared to what I was doing previously which caused me anxiety this is a stress free job which is just following processes which my ND brain loves.

I hate how people see me as an easy target, I wish I could be more resilient.

Thank you

You sound pretty resilient to me, you’re standing your ground and not letting them walk over you. I very much doubt they see you as an easy target, it’s more likely someone has either agreed an increase they didn’t have the authority to or implementing the increase is a change in process that they don’t know how to do.

Its really annoying but you’re doing the right thing in holding them to it, it will be a systems issue rather than something personal.

Update:

I spoke to the Ops Director of the agency yesterday. He said that the rate I was told I would get was basically the rate it costs for me to 'be there'. All deductions come out of that, holiday pay, NIC both employers and employees, tax and pension. He said he agrees that their company could have done more to explain this. I still don't agree with what he's said or his figures but he said they cannot pay the rate of pay they agreed to in the beginning. Period. He agreed it was their mistake or at least intumated this and said "their 'communication could have been better".

However, he has agreed to speak to the client who have told me that they are very happy with me (there's been talk of the possibilty of permanancy in November). He said he will speak to them about increasing my hourly rate but i don't know if this will happen, I only have his word for it that he will do it and typically both HR people are away on A/L at the moment so we will wait to see what transpires. He sounds a decent bloke so I'm unsure.

After speaking with me for over 40 mins on the phone he has agreed to pay me difference in the rate originally agreed backdated from my start to C.O.B last night. He's estimated its around £650.

I had always intended the possibilty of going part time when the estate funds came through from Mum and Dads estate. Ive been waiting 12 months and queried this with the solicitor on Friday. The solicitor has just awarded me an interim payment of a sizeable amount so I now have savings to fall back on. It is such a relief, its a mixed bag of feelings as I loved my parents hugely so feel sad too, but I am so grateful for their saving prowess which has always put me on good stead with my own attitude towards savings.

On the basis having a job is better than not having one I'm going to sit tight for now as I love my hours and the work and the people I work with. Thank you all for your help xx