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Not sure about that - it covers £10K for client going bust if you're direct with client, and agency going bust if you're through an agency.
Maybe £1000 for failing to honour contract, depending what the contract says, which I guess is key here. Probably worth giving them a ring if you might be covered.
No - contract doesn't trump statute. So if you aren't opted out correctly, then they have to pay you regardless of whether they get paid or not.
As long as you can show that you did the work, they have to pay up - which is one big reason why the agencies hate those that aren't bullied into opting out.
This +1. Check your contract and the status of your opt in/out carefully and proceed on that basis.
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No - contract doesn't trump statute. So if you aren't opted out correctly, then they have to pay you regardless of whether they get paid or not.
As long as you can show that you did the work, they have to pay up - which is one big reason why the agencies hate those that aren't bullied into opting out.
I would expect so - the website talks of "Up to £10000 compensation for failed payments" so I'd get on the phone quickly if you're a member.
Must be why Rullion Manchester wont put you forward for IT jobs (hate people who arent bullied) unless you agree to 'opt out.'
Out of interest how many cases have you seen that came down to opt in/out problems and from them how many accepted the status and it got resolved?
We have had two cases this year that purely related to the opt in/out status, both were resolved successfully without litigation. In both cases the agency had, in our view, attempted to shift the loss they faced from dealing with insolvent clients on to the contractors for no other reason than they felt they could.
However the legislation is explicit and a majority of legitimate recruitment companies know that if push comes to shove they would struggle to defend a legal claim based on statute, irrespective of what the contract may state.
The problems arise when the status isn't clear from the outset, the relationship breaks down in some way or the agent (or end client) is dishonest. Simply staying opted in does not provide a guarantee of payment in these circumstances.
From a credit risk perspective remaining opted in is preferable, but it needs to be coupled with the necessary due diligence and adherence to any agreed contractual terms.
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