is opting out of the Employment agency regulations a good thing?

**malvolio** · 27 May 2007, 11:28

Opt in or out has no impact on IR35 nor on employment status. It's more about commercial considerations: since opting out frees the agency from various requirements, you should be able to negotiate a better deal contractually, but you are losing some financial benefits such as less guaranteed payment and longer handcuff clauses. As in all things it's a bit of a trade off.

PCG does a very good and detailed guide to the regs, if you're a member.

**richy** · 27 May 2007, 11:33

Re: is opting out of the Employment agency regulations a good thing?

This Word document has some good points, it seems to have been written by PCG: http://www.executivesonline.co.uk/ca.../Opt-out-guide

"IR35 implications" section is good, it says the regs say “contracts for services”, so its supporting self-employment LTDs like me.

Has anyone had to use the agency regulations? what do people think of opting out, or staying within the regs?

**Paddy** · 27 May 2007, 11:43

[QUOTE=richy]The Conduct of Employment Agencies and Employment Businesses Regulations 2003 gives each of us the opportunity to 'opt out'.

I understand there are two types of agencies, but don't fully understand meself.. so there are "employment agencies" and "business agencies". i'm a ltd company contractor... I figure I should be working with "business agencies" using b2b contracts, but in reality the contracts don't always look like that I expect

what I wonder is, is not opting out a good thing? (Does it make me incorrectly look like an employee?)

if I do opt out, does that mean the agency or end client have more control over me? (I don't want a mutuality of obligation to exist, could that be considered to exist if I am tied in to using the same agency for 6 months?)

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is opting out of the Employment agency regulations a good thing?