Still gathering requirements...
So, I was never given an option to opt out from my Agecny. I therefore have, byb default, opted into the regulations.
My current contract is 6 weeks long. In my contract it stipulates that I will not solicit business from the client for 6 months following the end of the contract. The client is now offering me a permanent role.
Is the restrictive coventant REDUCED to 8 weeks, due to the the regulations OR is the restrictive covenant void and I can start working with the client immediately.
Also if the client offers me a permanent job (and I want to take it because the company and opportunity is HUGE), does the restriction even apply, because the contract was with my company and not me directly.
Make sure you tell the client that you never opted out of the agency regulations because this limits the temp-to-perm fee the agency can charge the client.
Hello everyone! I am on the verge of accepting my first contract position. I have never contracted before so all this legal babble seems too daunting for me
I have been asked weather to opt-out or no.
I am a dud at understanding the implications of either opting out or not. I read through the thread & I understand that most of you guys are leaning towards not opting out; I still fail to understand what are the implications if you do or do not. Can some one please cite me benefits & disadvantages of either.
I am reading through the history of IR35 , and i am a complete fail at understanding it. I understand that some folks disguised and used means to evade tax, but i am not sure what does opting out or not have any legal ramifications with it.
I would greatly appreciate it if some one could explain the history & future of the same
I think general consensus is that opting out makes no difference whatsoever with regards to IR35. Therefore, you're better off not opting out because that gives you the benefit that the agency has to follow a code of conduct. Hopefully, will never be an issue but just in case something happens like the client doesnt pay the agency, unless your opted out, agency still has to pay.
You really need to understand IR35 though. Do some reading up on it? Whether you're inside or outside IR35 will make a significant difference to your income after tax.
Would this act apply even if working for an agency without a contract. Just on a monthly PO basis?
I have been working for my old employer for the last 8 months via my ltd company and now want to approach the client directly as I am passed the 6 month limitation clause in my old employment contract. However, my old employer are stating this is not allowed under their terms and conditions. (Which I haven't seen or agreed to ever!) But if these conditions specifiy a restriction period longer than 8 weeks can I tell them it is void as I did not opt out of the regulations?
I live on CUK
The old employer's contract with the agency is legally allowed to have a different restriction from your contract with the agency.
This means the old employer is not allowed to give you work directly without going through the agency within the time limit of this restriction regardless of what you have signed or not signed with the agency. Or whether you are opted-in or opted-out.
Whether the time limit the agency put on the old employer can be legally enforced is up to the old employer to argue with the agency - not you. However as they are not interested in arguing about it there is nothing you can do.
Last edited by SueEllen; 18th June 2011 at 09:28.
Ah, I think I didn't explain very well. When I said agency I meant my old employer. I left them to go contracting and they offered to keep me on as they still had a contract with the client (who I couldn't approach directly due to the clause in my employment contract).
Two 3 month extensions later and I approached the client directly as I was free of the original clause, they were fine with this but my old employer says I can't do it.
I live on CUK
If the client says you can do it, you are working through a limited company and you are out of any restriction clause in your personal employment contract why is it your old employer's business?
They haven't given you a commericial contract with T&Cs so just see you as a supplier i.e. like a retailer, so you are free to supply your services to who you like.
Edited to say: One of my direct clients where I had a PO I also had a contract for services. Most of the direct clients I've had just use a contract for services with defined services no PO.
Last edited by SueEllen; 18th June 2011 at 10:29.