Opt-Out Question

[JoJoGabor]

Regarding Opting out of the "Conduct Regulations 2003"

I have been contracting direct to a client for several months, but have been having issues getting paid on time. Therefore I have asked to go via an agency of my choice and the client have agreed to pay an extra sum per day to cover that.

Now the contract from the agency specifies that I must Opt-out of the above regulations. Now I am going to negotiate that, and I dont think they can legally force me to opt-out. I want to opt-in to help protect me against the client defaulting on payment to the agency. I believe the opt-out can only be done before the introduction of the consultancy to the client. How does that apply in this case where the introduction has already been made through some method other than the agency?

[northernladuk]

Have you read the opt out sticky?

[Wanderer]

I believe the opt-out can only be done before the introduction of the consultancy to the client. How does that apply in this case where the introduction has already been made through some method other than the agency?

I'm inclined to agree with you. The opt out is not possible.

I would simply point out to them that you have been both introduced and supplied to the client and therefore there is no way you can opt out. Put this in writing and request their response in writing too.

Since it was you who introduced the client to the agency, you are in a pretty strong position to negotiate here. I would also point out to the agency that if they can't come up with a decent contract with no stupid tricks (eg, like restrictive covenants saying you can only work for the client through them from now on) then you will simply take your business elsewhere.

[JoJoGabor]

Have you read the opt out sticky?

Yes of course, are you referring to something in particular or just pulling your usual line?

[northernladuk]

Nope just checking you had seen it. Not everyone checks before asking, like the bloke asking if he can claim expenses off his client and his ltd.

[northernladuk]

Nope just checking you had seen it. Not everyone checks before asking, like the bloke asking if he can claim expenses off his client and his ltd.

I did also think that post 31 might answer your question.

Note that the consensus here is that the opt out under Section 32(9) must be done before the introduction for it to be valid. If you were already introduced to the client then the opt out may not be valid anyway and not worth losing sleep over. I get the impression that a lot of people opt out in what they see as as invalid way and let the agency continue along in cuckoo land thinking they have a valid opt out.

or post 41 maybe

The opt out must be done "before the introduction or supply", in your scenario you would be both introduced and supplied by the agency so there is absolutely no way for you to opt out.

It might make the agency feel better if you did sign an opt out later but it's worthless under law. That won't stop them trying to use the (invalid) opt out against you in the event of a dispute, it's incredible how they conveniently fail to understand the law when it suits them to do so and I really can't accept that they don't understand the law.

Both by Mr Wanderer by the way.. Credit where credit is due

Post 71

Actually the advice is to opt out but opt back in again if it is advantageous to do so. But arguably if you don't opt out before the client knows who you are, it's too late anyway.

And so on.....