Opt out of Conduct of employment agencies 2003 act?

[Lance]

Inside PAYE from the agency gig on offer where they have stiplated in the emplyment contract that the worker agrees to opt out of this act. I'm not very clear on details of this act but I do note that the agency has to pay you even if the client doesn't pay them if you're opted in.
Told them I want the contract revised to explictly opt in and am anticipating push back.

It seems the history of this thread has largely been concerned this act wrt implications for your IR35 position, but I presume for a PAYE inside temp role I'd be well advised to opt in?

As an employee you need to be paid no matter what.
I'm assuming they will force you to be on PAYE for an umbrella.

I don't believe that opting out can change that fact.

[malvolio]

Inside PAYE from the agency gig on offer where they have stiplated in the emplyment contract that the worker agrees to opt out of this act. I'm not very clear on details of this act but I do note that the agency has to pay you even if the client doesn't pay them if you're opted in.
Told them I want the contract revised to explictly opt in and am anticipating push back.

It seems the history of this thread has largely been concerned this act wrt implications for your IR35 position, but I presume for a PAYE inside temp role I'd be well advised to opt in?

Yes, except you can't opt in to it, you can only opt out. You are covered by the act by default. Since the act is specifically designed to stop a payrolled worker such as you (not an employee - subtle difference) from being screwed by their hirer, it would be wrong to force said worker to opt out.

I'm afraid you need to play hardball with the agency. Either they drop this blatantly unfair provision or you walk away. Unless, of course, you're happy to sign away the protection of the act, specifically over payment and handcuff clauses but there other details.

Good luck, though. The agency will move heaven and earth not to accept any level of additional risk to their cosy business model, which relies on you not knowing the background and them ignoring legislation.

Name and shame would be good as welll.

[eek]

Yes, except you can't opt in to it, you can only opt out. You are covered by the act by default. Since the act is specifically designed to stop a payrolled worker such as you (not an employee - subtle difference) from being screwed by their hirer, it would be wrong to force said worker to opt out.

I'm afraid you need to play hardball with the agency. Either they drop this blatantly unfair provision or you walk away. Unless, of course, you're happy to sign away the protection of the act, specifically over payment and handcuff clauses but there other details.

Good luck, though. The agency will move heaven and earth not to accept any level of additional risk to their cosy business model, which relies on you not knowing the background and them ignoring legislation.

Name and shame would be good as welll.

Why do you think agencies love using Umbrella companies - umbrella companies being 3rd parties allow the opt out to be (ab)used. BTW it's often a PSL requirement to enforce opt out of regulations.

If you want to scare an umbrella point out that if the agency doesn't pay an employment tribunal will allow you to recover any bonuses they don't recover.

Thankfully it's likely to be one of the items scrapped even if regulation doesn't arrive next year.

[malvolio]

Why do you think agencies love using Umbrella companies - umbrella companies being 3rd parties allow the opt out to be (ab)used. BTW it's often a PSL requirement to enforce opt out of regulations.

If you want to scare an umbrella point out that if the agency doesn't pay an employment tribunal will allow you to recover any bonuses they don't recover.

Thankfully it's likely to be one of the items scrapped even if regulation doesn't arrive next year.

Agreed, but the OP is talking about an agency gig, which to me says agency payroll rather than umbrella (not that uncommon in medical circles for example). ICBW of course.

[eek]

Agreed, but the OP is talking about an agency gig, which to me says agency payroll rather than umbrella (not that uncommon in medical circles for example). ICBW of course.

You can't opt out if you are on agency payroll - a third party is required within the contractual relationship for an opt out to be legally offered.

[MrC]

Good luck, though. The agency will move heaven and earth not to accept any level of additional risk to their cosy business model, which relies on you not knowing the background and them ignoring legislation.

Name and shame would be good as welll.

Yes, they also have a clause asking the worker to indemnify them against any liability from the end client including legal costs if you breach the agreement. Told them I want that removed too!

I'll name and shame once things are either over the line or don't work out...watch this space...they aren't a terribly big player in any case, their name doesn't come up once on this whole forum even via a google search.

[Smartie]

I never opted out of the regulations for my contracts over the past 10 years. You can argue the toss over IR35 but making sure the agency paid me even if they weren't paid was a bigger priority for me.

All the agencies tried to ensure an opt-out, usually after introduction to the client (interview) or even some weeks after starting the contract. This isn't allowed.
Nevertheless, they always had a standard version of the contract and an 'opt-out' version and I never lost a role from failing to opt out.

[MrC]

You can't opt out if you are on agency payroll - a third party is required within the contractual relationship for an opt out to be legally offered.

Well, this is what the agency seem to be attempting via the contract and it's on their payroll. I wonder if this clause is a copy-paste hangover from old outisde IR35 contracts.

[malvolio]

Well, this is what the agency seem to be attempting via the contract and it's on their payroll. I wonder if this clause is a copy-paste hangover from old outisde IR35 contracts.

Like I said, the agency has f*** all idea of the laws that govern their business.

[MrC]

Like I said, the agency has f*** all idea of the laws that govern their business.

You are not wrong. When i spoke to their "compliance manager" on the phone they said that this act was all to do with a marketing/GDPR type opt out. Unbelievable!