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Can recruitment agencies dictate that they only operate with preferred suppliers when it comes to umbrellas or that I have to operate as my own ltd company?
The agency can do whatever they like - so yes, in theory they can.
In practice, they will rarely insist on it if you have already attended the interview and been accepted by the client (after all, they're not going to turn down profitable business just for this).
They do sometimes try to give you the impression that you have to go with their preferred umbrella - they often get commission or backhanders from the umbrella company. However, if you dig your heels in then they will rarely press the point.
Plan A is located just about here.
If that doesn't work, then there's always plan B
Can recruitment agencies dictate that they only operate with preferred suppliers when it comes to umbrellas or that I have to operate as my own ltd company?
It's like anything in business: they can say that, you can accept it or reject it, they can decline to work with you if they don't like it.
My agency tried to railroad me into using 1stContact. I did some homework (kind of how I discovered this forum) and most people reccomend staying well away from 1stcontact.
I had made the mistake of emailing 1stcontact before finding out they should be avoided. They emailed me and I replied saying that I was'nt going to proceed. They emailed back and said that if I referred anyone to them there was £50 (wow!)in it for me.
So I reckon my recruitment consultant tried to railroad me for the sake of fifty notes.
Incidentally, am going the Ltd route myself as seems to be the best way.
If you haven't specifically opted out of the EB regs, then they state :-
"Restriction on requiring work-seekers to use additional services
5. Neither an agency nor an employment business may make the provision to a work-seeker of work-finding services conditional upon the work-seeker -
(a) using other services for which the Act does not prohibit the charging of a fee, or
(b) hiring or purchasing goods,
whether provided by the agency or the employment business or by any person with whom the agency or employment business is connected."
In other words they're not allowed to place conditions like using a particular umbrella on you. There are a lot of things that EB's aren't allowed to do nowadays - for example they can't stop you from taking up a direct role with the client.
If you haven't specifically opted out of the EB regs, then they state :-
"Restriction on requiring work-seekers to use additional services
5. Neither an agency nor an employment business may make the provision to a work-seeker of work-finding services conditional upon the work-seeker -
(a) using other services for which the Act does not prohibit the charging of a fee, or
(b) hiring or purchasing goods,
whether provided by the agency or the employment business or by any person with whom the agency or employment business is connected."
In other words they're not allowed to place conditions like using a particular umbrella on you. There are a lot of things that EB's aren't allowed to do nowadays - for example they can't stop you from taking up a direct role with the client.
I think i may have opted out .. which is why they are saying this.. I have decided on the ltd company route...thanks every one for filling in.. i quite like this forum and intend to continue posting here..
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