The Conduct of Employment Agencies and Employment Businesses Regulations 2003 (the Regulations) govern the conduct of the private Recruitment Industry and establish the framework of minimum standards that clients, both work-seekers and hirers, are entitled to expect.
The regulations were effective from 6 April 2004 and they cover all work-seekers which includes limited company contractors, commonly referred to as incorporated workseekers.
The regulations include many rules, restrictions and standards that have to be adhered to by the recruitment industry. Regulation 32 gives the right to limited companies (and those persons they supply) to choose not to be covered by the regulations or opt out, this could include umbrella companies and their workers but that will entirely depend on the contracts you have with the worker prior to them selecting the umbrella, the contractual relatuionship you have with the umbrella and a valid opt out notice that has been communicated up to the end client.
If the correct process, together will supporting contracts and notices, are not applied then the worker will be considered as within the regulations and they will apply in full.
Please log in to view the full text or register with Professional Passport.