What are Conduct Regulations?
- The Conduct of Employment Agencies and Employment Businesses 2003.
- They govern the conduct of the Recruitment Industry and detail the minimum standards that clients, work-seekers and hirers are entitled to expect.
- It ensures that Agencies are responsible for the validity of the candidates they submit, in terms of their legality to work and the qualifications needed to do the job.
- Protects the rights of candidates so they have to be treated the same as permanent employees
What does it mean to opt-out of Conduct Regulations?
- All contractors are automatically covered by the legislation and are therefore protected by the legislation and treated as employees.
- By being treated as an employee those contractors working via a Limited or an Umbrella Company get caught under another piece of legislation called IR35 and therefore have to pay NIC or PAYE tax. These contractors can therefore “opt-out”.
- By providing “opt out” letters, an individual and their company is declaring that the Conduct Regulations will not apply to that particular contract. About 98% of this group choose to opt out within the IT and technologies industry
What does it mean to remain covered by the Conduct Regulations?
- We cannot hide your timesheet and pretend that we haven’t received it – therefore not pay you, whilst we still continue to bill the client and get your money without giving it to you.
- We have to pay you as soon as you bill us rather than waiting to pay you once the client has paid us.
- We cannot stop you going perm with the client.