Opt out - Employment Agency and Employment Businesses Regulations 2003

[Slumdog]

Should the regulations of Employment Agency and Employment Businesses Regulations 2003 be opted out of as per my new contract.

I havent read it fully but as a contractor should i sign this or have the contract amended, and if sowhat amendments are neccessary?

[contractreviews.co.uk]

Should the regulations of Employment Agency and Employment Businesses Regulations 2003 be opted out of as per my new contract.

I havent read it fully but as a contractor should i sign this or have the contract amended, and if sowhat amendments are neccessary?

Hi Slumdog,

My personal opinion is that you should not opt out.

Some will say that opting out helps you avoid being caught by IR35, but I personally think that you should be fine as long as:
a) Your contractual agreement is IR35 friendly (you should get this checked), and
b) You are a genuine independent contractor and this is reflected by your and your client’s actions.

Therefore, should you still decide to opt out of the Regulations you will only be restricting yourself as the Agency will be able to apply longer restriction period to you and your client.

Should you have not opted out then a strict time frame will apply:

(a) an 8 weeks period commencing on the day after the day on which you last worked for the client; or

(b) a period of 14 weeks commencing on the first day which you were introduced.

Should you have opted out of the Regulations then, no restriction will apply, as long as these are reasonable. These usually range from 6 to 12 months.

Agencies will try to argue that this places a greater burden on them as they should ask further information from the client beforehand…. My personal experience is that they already have the placement information and in any case require you to provide them with the documentation as set out in the Regulations (such as proof of ID).

I hope this helps,

Mardi

[Not So Wise]

For a contractor there zero reasons to opt out and 101 to remain opted in.
For an agency there are 101 to have a contractor to opt out and none to leave them opted in

Thus agencies will always try to convince you to opt out as it is to their benefit and your detriment

Some people think opting out helps in defending against IR35 (agencys promote this thinking for obvious reasons) but it really has zero impact

Side note: contrary to what agents would like you to think, if you have already been introduced to the client (aka interview) you cannot legally opt even if you wanted to, no matter how many pieces of paper they have you sign.

[Slumdog]

cheers. will get contract amended by agent then

guess it may also be worthwhile joining PCG

[Beefy198]

For a contractor there zero reasons to opt out and 101 to remain opted in.
For an agency there are 101 to have a contractor to opt out and none to leave them opted in

Thus agencies will always try to convince you to opt out as it is to their benefit and your detriment

Some people think opting out helps in defending against IR35 (agencys promote this thinking for obvious reasons) but it really has zero impact

Side note: contrary to what agents would like you to think, if you have already been introduced to the client (aka interview) you cannot legally opt even if you wanted to, no matter how many pieces of paper they have you sign.

Great advice, couldn't have said it better myself.