WA Variation of contract months after signing

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Paul Antoine

Member
20 March 2019
2
0
1
My company (Pty Ltd)s has been contracting into one of the major banks, via the inevitable recruitment company interposer. We have been contracted on a variety of extensions for almost 2 years. The initial rate was $85/hr, and the duties were as a software developers.

During the next to last contract the bank's software team lead left, and one of our employees was directed to pick up his duties. No new contract was proposed.

Last renewal we received the contract agreement and noted the hourly rate had risen from the aforementioned $85/hr to $109/hr... more in line with the team lead rate, without our requesting it. We duly signed and returned the contract in late November of 2018. Since then the bank has hired a full time team lead, but our employee has had to train them as the bank's systems are complex.

Two weeks ago we got a call from the recruitment company claiming we have been overpaid. They say the rate ought to have remained $85/hr, that the $109/hr rate was a clerical error (isn't their/our client a BANK?), and that we must replace the existing contract with a new one spanning the same period for $85/hr. They will then commence recovery of the "overpaid" amount of some $11,000 at a rate mutually agreed.

What are our rights in this situation? This was a contract drafted by the bank and recruitment company which was clear our company had near-zero chance of editing terms. They ought to have checked it before sending to us, then checked we'd signed and checked again on entry into the payments system.

Thanks in advance!
Paul
 

Paul Antoine

Member
20 March 2019
2
0
1
My company (Pty Ltd)s has been contracting into one of the major banks, via the inevitable recruitment company interposer. We have been contracted on a variety of extensions for almost 2 years. The initial rate was $85/hr, and the duties were as a software developers.

During the next to last contract the bank's software team lead left, and one of our employees was directed to pick up his duties. No new contract was proposed.

Last renewal we received the contract agreement and noted the hourly rate had risen from the aforementioned $85/hr to $109/hr... more in line with the team lead rate, without our requesting it. We duly signed and returned the contract in late November of 2018. Since then the bank has hired a full time team lead, but our employee has had to train them as the bank's systems are complex.

Two weeks ago we got a call from the recruitment company claiming we have been overpaid. They say the rate ought to have remained $85/hr, that the $109/hr rate was a clerical error (isn't their/our client a BANK?), and that we must replace the existing contract with a new one spanning the same period for $85/hr. They will then commence recovery of the "overpaid" amount of some $11,000 at a rate mutually agreed.

What are our rights in this situation? This was a contract drafted by the bank and recruitment company which was clear our company had near-zero chance of editing terms. They ought to have checked it before sending to us, then checked we'd signed and checked again on entry into the payments system.

Thanks in advance!
Paul

Further to this: the recruiter is withholding processing of timesheets and therefore payment for services rendered until we sign the revised agreement. We continue to provide services in good faith (the bank project is critical.)