Agency regulations

[Flat Eric]

I've read a little on the agency regulations but am a little unclear about wether it would be better to opt in or opt out.

Can anyone offer any guidance.

(p.s.) after performing a couple of searches on here I came across this link

Apologies for wasting time posting repeat questions.

M.

[oraclesmith]

What are you contracting as? Limited (in/outside IR35), umbrella, MSC, sole trader or just a temp PAYE employee? It makes a difference.

Basically if you're limited and want to stay outside IR35 (paying yourself a modest salary and sizeable divis) then you're not claiming as employment placement through the EB and therefore you should improve your IR35 status by opting out.

On the other hand, the regs give you some protection and risk reduction re. getting paid, so if you don't care about IR35 then you may be best to do nothing, which is by default opting in.

In my opinion.

[Flat Eric]

Thanks.

I've had an interview with the end client and going by what I've read, I'm automagically opted in. I wish I'd known that this was the case earlier.

It probably wouldn't have made much difference but I'd have liked to have had the choice.... (lesson duly learned).

Thx
M.

[Flat Eric]

... I would stay opted in as it means you can go direct with the client once the contract ends.

That's an interesting point... What are others eperiences of this. I'd expect the agency to be really pissed at this arrangement.

It could also work to your advantage come renewal.

"Hey, Mr Agent, I'm thinking of going direct with the client, how about cutting your margin".

M.

[Gonzo]

That's an interesting point... What are others eperiences of this. I'd expect the agency to be really pissed at this arrangement.

It could also work to your advantage come renewal.

"Hey, Mr Agent, I'm thinking of going direct with the client, how about cutting your margin".

M.

Nice idea in theory but don't forget that the client will have a business relationship with the agency too.

[Flat Eric]

Nice idea in theory but don't forget that the client will have a business relationship with the agency too.

I realised there was a flaw in my argument. It seems pretty ludicrous (from an agents point of view) that these regulations would allow this.

Anyway, I wasn't seriously considering doing this but it's interesting to know that the option exists and is entirely legal.

M.

[jh0711]

i have had conversations with agencies around this - they seem to think - oh we have a contract with the end client so you will not be able to do this..

wonder who would win if it went to court? contracts law v's employment law

place your bets!!!

[tim123]

i have had conversations with agencies around this - they seem to think - oh we have a contract with the end client so you will not be able to do this..
!

Not if you're opted in they don't. The act specifically makes such a clause void.

tim

[Bluebird]

Not sure I understand this "opting" either in or out.

I've [ my ltd has ] got a contract with the agency - where does the opt in /out come into this ?

[interested]

Opting in gives you many more options as Denny has said.

If, for example you discover that the agency is making a large margin, and you want some flexibility on extension time to either switch agencies or have a stronger negotiating position, then being opted in will enable you to do this