Advice Needed - Conduct Regulations Opt-out

[jay55518]

Hi all,

Had a look around the forums to find out about the regulations but I have a contract specific question that I'm hoping you can help with.

I am in the processing of signing my first contract (I am new to this) and reading through it I see a clause that states

'it [the company] and the Consultants it supplies to provide the Services have agreed to opt out of the
Conduct Regulations and have signed an agreement to that effect and as such understand
that none of the Conduct Regulations apply to this Agreement. Further the Company
warrants that it will only supply consultants to perform the Services who have opted out of
the Conduct Regulations and further that any person to whom performance of the Services
are assigned or sub-contracted has opted out of the Conduct Regulations;'

Now the agency haven't stated that I have to opt-opt nor have they said that I can't proceed unless I opt-out but the above certainly suggests that. Would this stipulation be from the client or the agency. Also, I have interviewed and verbally accepted the contract.

The advice required is this, is the contract legal and if I want to opt-in what would be the best approach.

Cheers

Jay

[northernladuk]

Have you read the 33 page sticky that is in this very forum on this topic?

[Contreras]

I am in the processing of signing my first contract (I am new to this) ...

... if I want to opt-in what would be the best approach.

Simple: ask for the clause to be deleted before you will sign, or ask for the non-opted-out version.

Achieving this depends on your wit and confidence in negotiation. The agent will have all sort of reasons why it cannot be changed but ultimately they won't want to risk losing the commission. Let them believe it's a deal breaker.

Bear in mind that being opted-out is not the end of the world. There are arguably more important contract terms to be negotiated - payment terms and notice period for example. You've met the client so opt-out is hardly enforceable anyway.

When you accepted verbally you did so "subject to contract". You'll come up against the "all other contractors just sign it" line, which in reality might be close to the truth, but they are used to having to make changes to accommodate the savvy or difficult among us.

And please read the sticky.

[Wanderer]

Simple: ask for the clause to be deleted before you will sign, or ask for the non-opted-out version.

I would be inclined to just ask for the clauses to be deleted. If you go for the non-opted out version they can try and give you a tulipty contract that fails IR35.

Ignore the agency bluster that you are the first person to ever refuse to opt out, it's nonsense.

The sticky is long so skip to this opt out post then add your story to the long list of people who have had agencies try to screw them over with the opt out.....

[Contreras]

I would be inclined to just ask for the clauses to be deleted. If you go for the non-opted out version they can try and give you a tulipty contract that fails IR35.

Fair point. tbh, I'd probably tackle it by deleting the clauses that bother me, e.g "contractor not paid if client doesn't pay", and leave in the stuff that the agency is usually worried about most (client engaging contractor direct). That way the agency gets their opt-out but it's effectively neutered on the points that matter to me.

Having said that, I've so far not had an opt-out acceptance clause embedded in the main contract, it's always been a separate form which is easier to dismiss.