Unusual Contract Addendum

[Jimbo54]

I was chasing a new contract, and something I have never seen before came up: the Agency Workers' regulations. The agent wanted me to sign an addendum that looked like this:

We, <My Ltd Co>, entering into a contractual assignment with <Agent> confirm
that we have read and understood the Agency Workers Regulations 2010.
We confirm that we are not supplying agency workers according to Regulation 3(2)(b).
We confirm that we regard <client company> as our client for the purposes of this legislation.
We also confirm that we are operating in business on our own account.
Regarding the relationship between ourselves and <Client Company> we confirm that this is a business relationship and we regard the contractual assignment as falling outside of the Intermediaries legislation (IR35), otherwise known as Pass IR35.

Aside from never having to sign something like this before, the line "We confirm that we regard <client company> as our client for the purposes of this legislation." rang alarm bells: I would be contracted to, and issue invoices to, the agent.

Has anyone seen anything like this before, and what is its status/value

This is all private sector stuff, liable to run to April next year

Thanks

Jim

[northernladuk]

As always... Get it over to a specialist and let them have a look.

It's such an odd time you are likely to be seeing all sorts in contracts as agencies and clients try and get to grips with it all.

[Jimbo54]

I did....

As always... Get it over to a specialist and let them have a look.

I did, sent it to my Accountant, who is normally pretty good at these things, but he wasn't sure what it was about.

Had the agent chasing me on the phone just after I posted the original: after some flanneling, said it was to protect the agency....

Don't know who to believe now....hasn't ANYONE any ideas?

Thanks


Jim

[gnarledcontractor]

Just take what the agent says with a pinch of salt and get it checked out..

Sent from my SM-G960F using Contractor UK Forum mobile app

[northernladuk]

I did, sent it to my Accountant, who is normally pretty good at these things, but he wasn't sure what it was about.

Had the agent chasing me on the phone just after I posted the original: after some flanneling, said it was to protect the agency....

Don't know who to believe now....hasn't ANYONE any ideas?

Thanks


Jim

So you didn't send it to a contract specialist then.

[Jimbo54]

So you didn't send it to a contract specialist then.

I can normally rely on my accountant, he's been instrumental in keeping me on the right side of IR35 for 20 years...

Know any good specialists?

Cheers

Jim

[ladymuck]

The AWR is not new legislation and I've seen simar clauses in my contracts before.

Essentially you ar being asked to confirm that any personnel supplied under this contract are not caught by AWR - clause 3 of which says that the worker supplied is under supervision and direction of the hirer. I'm guessing you want to be outside of IR35 so you don't want to be saying the person doing the work is a 'worker' per this legislation.

The bit you're getting your knickers in a twist about is just confirming who the end client is that receives the work output. It does not have any bearing on who you send the invoice to.

There are heaps of contract review specialists out there a 30 second Google search or a look through this forum will reveal them to you.