Contract Restrictions

**Ardesco** · 19 June 2007, 14:55

Are you opted in or out ?

**DaveB** · 19 June 2007, 14:56

Did you opt out of the agency regulations?

If you didn't then the clause can't be enforced. If you did then it still probably can't be enforced but you'd have to play hardball with the agency concerned if they ever found out.

**Ardesco** · 19 June 2007, 14:58

If you don't know if you have opted in or out, you are opted in.

**jonahtest** · 19 June 2007, 15:01

Opt in/out

I am not sure what you mean by opted in / out. With regards to paperwork received from the agency all I have received is this contract.

How can I opt out of this clause.

Plus is this restriction a standard thing?

Thanks, for the quick replies.

**Pondlife** · 19 June 2007, 15:10

Originally posted by jonahtest

I am not sure what you mean by opted in / out. With regards to paperwork received from the agency all I have received is this contract.

There will be a form for you to sign saying that you wish to opt out of the employment agencies and employment business regulations 2003. It will be accompanied by the usual guff about this affecting your IR35 status (it doesn't). If you sign it (and therefore opt out of the regulations) they can put these clauses in your contract. If you refuse to sign it they can't and you can only be restricted for about 8 weeks IIRC.

Plus is this restriction a standard thing?

Most will put something in. The more restrictive, the less likely it would stand up in court though IMHO.

**Ardesco** · 19 June 2007, 15:11

If you have not been asked to opt out and you have been introduced to the client (i.e had an interview) you are opted in by default and nothing the agency says/does can change that.

If you are opted in they cannot enforce that clause in your contracted because they are forbidden to have that clause if you are opted in.

So to put it simply:

If you have had an interview and accepted the role ignore the clause, they cannot enforce it

**Xenophon** · 19 June 2007, 15:12

There is stuff about the regulations all over the web. PCG has a guide too.

**DaveB** · 19 June 2007, 15:13

Originally posted by jonahtest

I am not sure what you mean by opted in / out. With regards to paperwork received from the agency all I have received is this contract.

How can I opt out of this clause.

Plus is this restriction a standard thing?

Thanks, for the quick replies.

If you havnt signed a letter stating explicitly that you are opting out of :

"The Conduct of Employment Agencies and Employment Businesses Regulations 2003."

Then you are still covered. In the case of the restriction on working directly for the client, this is a good thing as it stops the agancy enforcing this clause.

Other advantages include a guarentee of payment from the agency even if the client doesnt pay.

Opting out, which you have to do explicitly and before you meet the end client means the agency have to do less work in setting up the contract in terms of checking references etc which *might* result in you getting a better rate or some leverage for contract changes if you want to make them.

There is loads more discussion on this on the site, just do a search for "employment regulations"

**TheFaQQer** · 19 June 2007, 16:02

Originally posted by jonahtest

I am new contractor, just starting out. Quick question I have a contract that stipulates I am unable to work for the client for 12 months or any third party related to the client after completing my contract with them. Is this a standard clause/time period? In effect I am being stopped from approaching the client for independent work. Which I can understand but I have no real baseline to compare this with. So if you people out there could let me know that would be great

Yes, it's fairly standard. Some agencies will negotiate on the revisit clause - if I'm opting out, then I tend to negotiate that it's equal to the contract length (so if I'm there 3 months, I can't go direct for 3 months).

If you're opted in (as others have said) then you can go back direct after 8 weeks, I believe. There are plenty of posts on here about whether to opt in or out. Worst excuse I've heard so far for opting out: "It makes the agents job easier". Almost on a par with "I don't know what they are, so I've opted out"

Contract Restrictions