Your Services Agreement with Oncore provides you with an exact breakdown of your standard fee and also an overview of instances where Oncore reserves the right to apply additional charges. This article provides a breakdown.
When signing up for Oncore; the Business Development Manager who consults with you during the sales process will discuss and negotiate service model and applicable fees with you.
Once your Services Agreement with Oncore has been issued, you'll see the fees clearly noted in the schedule of the contract. This will include a breakdown of what fees you're paying for which element of Oncore's service model (eg. reporting, insurance, administration).
You will pay a % fee for service that is made up of all components of the service model that you're using. These form part of the standard fees that you can expect to pay.
If you are leveraging Oncore's insurances, there will also be a Cashflow Management Facility Agreement that will show you the fee that you're paying to utilise Oncore's funding.
On both the schedule of the Services Agreement and the Cashflow Management Facility Agreement there will be additional terms, that include information on conditional fees.
Both short term contract fees and fees for extended payment terms fall outside of our standard pricing model. These are explained as follows (this wording is aligned with the agreements):
- Short Term Contracts: Each time the Recruitment Agency requests Oncore Business Solutions (OBS) to provide Services to the Recruitment Agency in respect of a Contractor for a period of less than one (1) month, the Recruitment Agency must pay a fifty dollar (A$50) configuration fee in addition to the fee payable for the Professional Contractor Services. As Oncore fees are charged as a % of worker's rate, contracts that are shorter in duration mean that we do not have an opportunity to recoup onboarding costs. The short term contract fee will cover these as well as other basic costs that would generally be covered by the fee once the contract extends over a monthly period.
- Extended Payment Terms: Each time OBS agrees to extend the date for payment of any Client Invoice beyond the fourteen (14) days referred to in clause 6 (Interest), OBS may in its absolute discretion:
8.1 fee - charge the Recruitment Agency an increased Facility Fee by
increasing the Fee Percentage; and
8.2 interest - suspend the interest that would otherwise be chargeable
under clause 6.
For extended payment terms; we would generally not apply this unless the payment terms exceed a 30 day carry of funds. For example, your worker is paid weekly, invoiced monthly and payment terms are 30 days. This means we would be funding the first week of pay of the period for over 30 days; and our interest costs increase. The team will take into account the whole of your contingent book, clients, payment terms, average debtor days, pay cycle as well as our genuine on-costs such as interest and insurances. The fee charged would be up to an additional 1%. If you know that your client has extended payment terms, we recommend looking to factor this into your negotiated margin.