Employment Agencies Regulations: Limited Company opt out

[briantvr350]

Hi Guys..

As part of the contracting process, along with the evidence of identity and "right to work" I have been asked if I want to opt out of the "Conduct of Employment Agencies and Employment Business Regulations 2003" which came into force 6/4/2004..

Now I'm not sure what this is all about, can someone perhaps explain exactly what I would be opting out of? And if it's a good idea or not?

Regards,

Brian (and a Red 350i)

PS this is an urgent request.. I need some sort of feedback by lunchtime 28th..

[flyingjase]

Hi Brian

You may wish to talk to the Professional Contractors Group (www.pcg.org.uk) who were the main lobby to the Government for the opt out.

Basically the agency regulations are designed to protect venerable workers by providing more rights to the individual and restricting the agencies rights. eg holiday rights, not being able to withhold payment if you don’t have a signed timesheet or punitive restrictions around you being able to work directly for the end client

The content of this legislation was seen by the PCG to put IT contractors within IR35, hence they lobbied for an Opt Out, which would be one indicator that the contract was outside of IR35

Good luck in the new contract

Jason

[obiwonkeyblokey]

As Jase said

Generally speaking it helps towards IR35 " Compliance" if you were to opt out as it reduces the evidenece the IR have against you to try and deem you a permie.

[briantvr350]

Thanks for the quick replies gentlemen.

So in balance, by signing the opt-out document I’m not actually signing away valuable rights and may even be strengthening my case with HMRC if they start sniffing for IR35.

In my case both the “employer” and the agency are well known high street names so I didn’t expect anything sinister.

Regards,

Brian (and a Red 350i)

[JonRB]

My understanding is that, despite the PCG's initial fears and reservations, it's actually fairly IR35-neutral.

Agencies would much rather you opted out though. It is strictly illegal for them to insist that you opt out, but the reality of the situation is that their co-operation and helpfullness will be greatly reduced if you do not. Since it is IR35 neutral then you may as well opt out.

Edited by JonRB on Wednesday 28th February 13:44

[JonRB]

briantvr350 said:

So in balance, by signing the opt-out document I’m not actually signing away valuable rights and may even be strengthening my case with HMRC if they start sniffing for IR35.

In my case both the “employer” and the agency are well known high street names so I didn’t expect anything sinister.

If you want to strengthen your IR35 position then nipping in the bud this "employer" bollocks is the first thing you should be doing.
Repeat after me "I am in business on my own account. I am NOT an employee or disguised employee of my client."

[briantvr350]

I am in business on my own account. I am NOT an employee or disguised employee of my client. I am in business on my own account.

I am NOT an employee or disguised employee of my client. I am in business on my own account. I am NOT an employee or disguised employee of my client.

I am in business on my own account. I am NOT an employee or disguised employee of my client.….

Point well made Jon… something of a habit after 30 years as an employee..

Regards,

Brian (and a Red 350i)