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 work-seekers'. 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. Such a choice should be made before the agency or employment business has introduced or supplied the contractor and, unless an opt-out notice has been completed, a contractor is deemed to be within the regulations – opted in.
Before making any decision as to whether or not to opt-out we recommend that you refer to our brief guide to the conduct regulations and view the guidance available on the BERR (Department for Business, Enterprise & Regulatory Reform) website.
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