Contract work through HR agency

[MidNiteZ]

I just got offered a 6-month contract analysis risk reporting position with one of the major banks. I did get this job through an HR agency (they found me on workopolis)

My question is that on the contract that i signed with the HR agency it states that I cannot discuss or accept employment with the client (bank) directly, therefore if the bank wants to keep me after 6 months they would have to deal with the HR agency. How does this work?

Any help would be greatly appreciate it thanks

[michelb]

This is very common and I don't think you'll find an HR agency that doesn't use it. Often the employer has some 'buyout' to pay the HR agency if they decide to keep you on after. It's to protect the agency and prevent you from negotiating an extension / perm position directly with the employer.

[MidNiteZ]

thanks for the reply

[Deans21]

I worked in a small HR company for awhile and michelb is absolutely right. The company either has to have some sort of agreement in their contract with the HR place or there's the buyout.

The way it worked for my company at least was that we took a percentage off of the wage paid out to the employee. If there was a temp to perm agreement in the contract, we took a bigger chunk of the wage and also charged an additional fee on top of that.

Bleh... HR agencies... gotta love 'em