Opt out of Conduct of employment agencies 2003 act?

[KiwiContractor]

Interesting link

Just been called up by an agency wanting to talk to me about some potential roles. As usual, I went to check the agency out first to see what kind of web presence they have first. Noticed this on their page, specifically "Please note for commercial reasons and following advice from BIS, Arrows Group are unable to accommodate Limited Company Contractors that wish to Opt In to the Conduct of Employment Regulations" Have had this kind of tulip from Agents at contract signing time but never so blatant as putting it on their site before! Especially when they also mention that it helps with IR35 which is clearly incorrect!

Anyone else seen this with any other agency out there?
Contract | Arrows Group

[cojak]

Have you bothered reading this thread? http://forums.contractoruk.com/busin...ml#post1535741

[KiwiContractor]

Have you bothered reading this thread? http://forums.contractoruk.com/busin...ml#post1535741

Well, yes...

Wasn't posting it as a question as to whether it's right or wrong or anything like that. Was posting it as I have never seen an agency be so blatant about trying to get candidates to opt out as to put it on their website and to also state in it that it makes it better from an IR35 perspective. Thats all

Cheers

[Graemsay]

What's the position on opting out after you've started work?

The opinion on this message board seems to be that you can't opt out after you've begun on a client site. But after speaking to the Pay and Work Rights Agency, it sounds as though an opt out counts from when you sign the piece of paper.

[Graemsay]

I've answered my own question.

I phoned the Pay and Work Rights helpline, and they confirmed that if you sign an opt-out then you're outside the regulations from that point on EVEN if you've already started work.

For future reference, I won't be signing away my rights.

[psychocandy]

I've answered my own question.

I phoned the Pay and Work Rights helpline, and they confirmed that if you sign an opt-out then you're outside the regulations from that point on EVEN if you've already started work.

For future reference, I won't be signing away my rights.

Then why does all their literature say its got to be before introduction?

[Wanderer]

I phoned the Pay and Work Rights helpline, and they confirmed that if you sign an opt-out then you're outside the regulations from that point on EVEN if you've already started work.

Read the actual legislation Section 32(9) for yourself, it ,says the opt out must be done before the introduction or supply of the work-seeker.

Pay and Work Rights helpline are either giving you wrong information or you misunderstood what they told you.

[northernladuk]

Didn't see this mentioned but REC isn't helping the situation with their guide to contractors which can be found here REC Leaflet Guide for Limited company Contractors pdf free ebook download from www.itsecurityteam.co.uk

it does have a bit of a scare paragraph on page 2 saying...

Why opt out?
The decision to opt out is likely to have
implications for your tax position.
Under Inland Revenue IR35 rules there are a
range of factors which are assessed by the
Inland Revenue to determine whether an LCC
is genuinely self employed, such as the
contractual relationship between the parties,
the level of control a client maintains over the
LCC, financial risk taken by the LCC and
length of engagement. If you decide you wish
to enjoy the legal protections of the Conduct
Regulations and be treated akin to a PAYE
worker then the obligations owed to you by
the recruiter may affect the assessment of
your status for tax purposes under Inland
Revenue tests of self-employment. If you are
genuinely self-employed then you may wish
to consider opting out so as to maintain your
tax advantages.If you do not meet the tests of selfemployment
then there may be less merit in
opting out in terms of your tax position.

Seems very strongly worded so it is no wonder the agents are convinced...

[psychocandy]

But it is of course all bollacks.

[northernladuk]

But it is of course all bollacks.

Maybe so but this kind of miscommunication without reputable reference is a real problem. Agents just bung this out and sit on their laurals because it comes from REC and just plays on the greyness of IR35. They believe they have done their research and found a rock solid statement on the situation... and as you say, we know better that to take every word as said.