agency holding part of my rate

LegacyUser

Hi, I contract through an agency in long term contract. I am now working remotely doing full contractual hours.

All contracts recently up for renewal. Contract had already been extended by the client with the same agency so just need a new contract from agency for new period. This is a formality ,each time I sign the extension with no problem with client. Job is same, contract should be same.

Two weeks before the new contract arrives we get email from agency asking us to take a "voluntary" reduction to our rate for the next 3 months. It is clear that it is expected we agree to bump up the rainy day fund of the company we are not employees with and do our part.

The client is still paying the full amount to agency and does not know this. Agency still has all contracts with no cancellations so no loss.

Is this legal in Ireland? At home a client would be very annoyed to find this out. The agency seem to profit from pandemic at client and my expense. New contract arrived after agreeing (no choice if I still want a contract), and does not mention temporary rate, just normal rate from start date onward.

I was also asked to accept reduction in notice period from 1 month to 1 week. This is one way so I still need to give a months notice. This has happened to all colleagues too and no one is happy.

The reason for this was "equity" with contractors already on 1 week notice period. This is new contractors in Ireland who don't realise this is not standard (for me anyway, never got this with any other agency and contracting a long time).

When they won contract a few years ago I would not sign until they gave reciprocal notice, same with all my colleagues. So they gave me a month, they would not accept a week from me.
It looks like they are using fear of not getting a renewal when no one is interviewing now to remove any security for contractors and make more money. They said it was because of Covid but it's in the new contract for good, not 3 months like rate reduction.

Their permanent staff have not had a pay cut also. I know some of them and they said they are not getting raises or bonuses this year. The company told us everyone was making sacrifices and it was only fair self employed people with no security allow them to keep part of money the client pays them that was meant for us. They think a pay cut is the same as not getting a raise.

The client is the government. Should they be told this is happening? I have worked with a few agencies on the same contract for many years. The government is not interested in contractor welfare, they say it is agencies responsibility. But maybe they are interested if they know they are paying the same rate as normal but agency is keeping more of it?

Any advice welcome. I am not very familiar with Irish law as I never had problem with agency before this

Thank you