Charge Rates

ACCESSING LABOUR SUPPLY CHARGE RATES

Labour providers have only one source of income, the charges levied to their clients - the labour users - and so those charges must cover the cost of supply and provide a reasonable profit margin. Labour users that pay unrealistically low rates are knowingly or recklessly conniving in illegality as these rates can only be achieved through worker exploitation, tax evasion or both. ALP has published the annual Charge Rate guidance since 2007. Populated with statutory costs, and estimates of variable costs provided by external sources, the guidance shows labour users the real cost of labour provision and helps to identify the labour providers who may be cutting financial corners. Updated each April, or whenever there is a change in statutory costs, the content is also replicated on the GLAA website.

A CADE MY

Calculating Charge Rates for Agency Workers

WORKSHOP

Calculate invoice rates with our online charge rate calculator

OUR MEMBERS SAY Briefs are the most helpful updates I receive from any recruitment related industry body/organisation

ACCESSING LABOUR SUPPLY CHARGE RATES

Calculating the cost of supply is only one part of the task. Labour providers must construct sustainable charge rates to clients, and so the charge rate guidance brief is supported by a range of tools and guidance on our Charge Rate Guidance web page. ALP Brief: ‘How to Calculate Charge Rates for Agency Labour’ provides a step-by-step process on how to calculate accurate and sustainable charge rates for agency labour. It supports labour providers and labour users to understand the real cost of labour provision, creating a basis for open and fair negotiation. Find out more about how this happens by exploring our Fair’s Fair resources on the ALP website. For labour providers who prefer an online solution, the ALP Charge Rate calculator enables members to input variables such as pay rates, holiday allowance and desired margin to receive a correctly calculated invoice rate that can be shared with clients.

The resources signposted on these pages define the real cost of agency labour and include a step by step process to calculating sustainable charge rates.

OUR MEMBERS SAY We’ve been members of ALP since 2006 and feel confident that we could turn for help, advice, or explanation