EB Regs - Agency wants me to opt out - Why ?

[Flat Eric]

I've just received the contracts for a gig and at the bottom of the contract is a clause which states...

OPT OUT NOTICE

This is an Opt Out notice under Regulation 32 paragraph (9) of The Conduct of Employment Agencies and Employment Businesses Regulations 2003 (the "Regulations"). Acting as Director of XXXXXXX Limited I agree that The Conduct of Employment Agencies and Employment Business Regulations 2003 shall not apply to the Agreement. It is understood that this Opt Out shall only apply if XXXXX has received a valid Opt Out from XXXXXX prior to the commencement of the Agreement.

Now, I'm wondering why this is at the bottom of the contract. It's obvious to me that it's preferable from the agents point of view for me to be opted out (why else would it be in the contract) and I'm wondering if it's worth me getting them to remove this clause and "Opt In" to the EB regs.

Can anyone shed some light on this please and possibly (and in terms of less that 3 syllables ) explain the ramifications of being in or being out.

Thx
Mark.

[tim123]

Because if you don't opt out, the clause in the contract stopping you from going direct to the client is void.

tim

[Not So Wise]

Because if you don't opt out, the clause in the contract stopping you from going direct to the client is void.

tim

But the funny thing is, if you have already met the client (aka the interview) the opt out is void as well

[Flat Eric]

There is a non return clause stating I can't get direct work with the client for a period of 12 months without going back through the agent.
Is that the only reason ?

[Cowboy Bob]

Also if you're opted in, the agency has to pay you regardless of whether or not they have been paid by the client.

[Flat Eric]

But the funny thing is, if you have already met the client (aka the interview) the opt out is void as well

IIRC, That's not true.

You have until you have started providing services. The regulations do state that once you've been introduced your opted in but there's an additional clause which overrides this

Besides, if I signed the contract "as is". I've have voluntarily opted out.

[Flat Eric]

Also if you're opted in, the agency has to pay you regardless of whether or not they have been paid by the client.

Aha, now I see. I'm almost certainly going to opt in then and get this clause removed.

[Bluebird]

This is what my contract says:

"The Supplier acknowledges that it will not act under the control of the Client or End User and that for the purposes of the Employment Agencies Act 1973 the Company is not acting as an Employment Business. Subject to communication by any means of this document by the Company to the Supplier prior to the Commencement Date, the provision by the Supplier of any part of the Services shall be deemed to be acceptance of this agreement whether or not this document is signed by the Supplier."

I thought this was just an 'outside IR35' clause, but I'm not sure about the last part - sounds like I've opted out ??

[tim123]

There is a non return clause stating I can't get direct work with the client for a period of 12 months without going back through the agent.
Is that the only reason ?

It's the only reason that they care about.

tim

[tim123]

Also if you're opted in, the agency has to pay you regardless of whether or not they have been paid by the client.

They have to do this anyway unless there is a clause in the contract that says otherwise.

And IMHO you should walk (very fast) from a company that insists on such a clause. After getting you the gig, EB's one role in life is factoring payments for your. If they refuse to do this, why should they still be in the loop?

tim