Going permie but EEA status opt-out

[karl1984]

Hi all

There are several permanent vacancies with my employer whom I'm currently contracting with.

I am interested in applying for one of these mainly due to job security outweighing my desire to earn a slightly increased wage.

However, part of my contract states that I am unable to accept permanent employment with my current employer until a 6-month period has expired after the end of my contract.

When I started the contract back in January I decided to 'opt-out' of EAA status through my current Umbrella company, Giant Strongbox.

So my questions are:

- what would 'likely' happen if I did apply for a permanent position and began work with my employer once my contract period has ended (i.e. ignored 6-month wait)?

- I have been offered a contract extension which I am still yet to accept. As part of this contract extension could I request to 'Opt-in' to EAA status?

Thanks in advance for all assistance

[karl1984]

Ok, so I have done a bit more research and identified the following...

because I was introduced to the client (i.e. attended an interview) before I opted-out then I am automatically opted-in to the Agency Regulations.

Despite my contract stating that I shall take take a permanent position with my employer for a 6-moth period following termination of my contract.

Am I allowed to take a permanent position with my current employer at the end of my current contract without waiting a 6-month period because I am automatically opted-in to the Agency Regulations?

[MaryPoppins]

Ok, so I have done a bit more research and identified the following...

because I was introduced to the client (i.e. attended an interview) before I opted-out then I am automatically opted-in to the Agency Regulations.

Despite my contract stating that I shall take take a permanent position with my employer for a 6-moth period following termination of my contract.

Am I allowed to take a permanent position with my current employer at the end of my current contract without waiting a 6-month period because I am automatically opted-in to the Agency Regulations?

Most agencies refuse to acknowledge the rule regarding ensuring a decision regarding opt in/out is made before introduction to the client. But it does exist - and it's for you to prove I guess. If you go permy, the agency will lose money and will probably do their best to try to enforce the contract clause. But they probably won't risk their contract with their client - personally I would go for the permy role in the knowledge that I am opted in, and would hope for the best where the agency is concerned. But that's just my two pence worth!! Good luck.

[MaryPoppins]

PS - however, I seem to remember that even opted in, you may be required to wait 8 weeks (or something similar) after the end of the contract before taking another position with the client.

This may be a moot point however, as the contract is with your Ltd Co I presume, and you would be taking the position as you, not your Co. Just a guess.

[karl1984]

PS - however, I seem to remember that even opted in, you may be required to wait 8 weeks (or something similar) after the end of the contract before taking another position with the client.

This may be a moot point however, as the contract is with your Ltd Co I presume, and you would be taking the position as you, not your Co. Just a guess.

Thanks MP

I seem to remember the 8 week clause reading something like...

"you have to wait between whichever is longer, 14 weeks since the start of your contract or 8 weeks after expiry of your contract". I have been contracting with my current employer for 9 months now so fortunately the 14 weeks since start of your contract applies to me and that period has passed.

I also work through an umbrella company and not a Ltd Co.

When you suggest that the agency will likely enforce the contract clause, what exactly does that mean? Would they likely take me to court for loss of earnings?

[Not So Wise]

Unless you are willing and able to take an 8 week break between contract and start of permie position You will need to consult a lawyer, preferably one with decent knowledge of not only the agency reg's but also contract law

While you are correct that you are opted in, that status does not grant you total freedom to do what you want, but a good lawyer could probably structure things in such a way that you can achieve what you want

[MaryPoppins]

Thanks MP

I seem to remember the 8 week clause reading something like...

"you have to wait between whichever is longer, 14 weeks since the start of your contract or 8 weeks after expiry of your contract". I have been contracting with my current employer for 9 months now so fortunately the 14 weeks since start of your contract applies to me and that period has passed.

I also work through an umbrella company and not a Ltd Co.

When you suggest that the agency will likely enforce the contract clause, what exactly does that mean? Would they likely take me to court for loss of earnings?

Yes, they would probably try to take some sort of legal action against you if you started work for the client immediately. As the other poster mentions, opting in gives you slightly more freedom, but it's still a risk which you need to consider. This will also impact the relationship between the client and the agency, so it depends how willing the agency would be to rock that boat, too.

[DaveB]

You have three options.

1) Do nothing and hope you can get another contract when this one ends.

2) Take the permie role but don't tell the agency. Take a couple of weeks off in between in case they get suspicious and ring the client asking to talk to you.

3) Talk to the client and the agency about it. Most agency's would be willing to negotiate a one off payement as if they had placed you in the permie role in order to wave the contract restrictions. How much will be down to negotiation between the agency and client.

[MaryPoppins]

You have three options.

1) Do nothing and hope you can get another contract when this one ends.

2) Take the permie role but don't tell the agency. Take a couple of weeks off in between in case they get suspicious and ring the client asking to talk to you.

3) Talk to the client and the agency about it. Most agency's would be willing to negotiate a one off payement as if they had placed you in the permie role in order to wave the contract restrictions. How much will be down to negotiation between the agency and client.

Yeah, listen to Dave actually

[DaveB]

Yeah, listen to Dave actually

Now why do you never say that when I offer the Cricket Bat solution to your directors loan problem