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Call 0161 703 2549 or email info@championcontractors.co.uk morsonrefs@championcontractors.co.uk
Introduced by the Department of Business, Innovation and Skill (BIS) in April 2004, regulations are in place to govern the conduct of the UK recruitment industry – they specifically detail the minimum standards that work-seekers and hirers are entitled to expect.
The regulations essentially provide protection for work-seekers looking to gain temporary and permanent employment. Any breach of the regulations is a criminal offence.
Regulations were updated in 2010 and again in 2016.
Work-seekers do have the option to ‘opt out’ of the regulations – this must be done before the start of an assignment.
Note – contractors who work with vulnerable people cannot opt out. The regulations confirm that a vulnerable person is any person, who by reason of age, infirmity, illness, disability or any other circumstances is in need of care or attention, and includes any person under 18 years of age.
Definitions
Employment Agencies are companies who source permanent positions for work-seekers.
Workers enter into a direct contract relationship with their new end client employers and are paid by the employer on a PAYE basis.
Employment Businesses are companies who source temporary positions for work-seekers.
Workers enter into a contract relationship with Employment Businesses – they then provide their services as a temp to end client hiring organisations. Workers are paid directly by the Employment Business.
Under the regulations an Employment Agency or Business cannot undertake the following:
Note - This does not apply to employment agencies who are not responsible for paying a work-seeker after they have been introduced to the permanent end client hirer.
An Employment Business must make sure temporary workers are:
Written terms should state:
The Employment Agency or Employment Business must also:
Vulnerable people are persons under 18 or those who by reason of their age, infirmity or other circumstances are in need of care.
Since 2010, Employment Agencies supplying permanent workers do not legally need to agree terms with a work-seeker before seeking work for them, or agree terms with Clients before introducing them to the work-seeker.
What are the Advantages & Disadvantages of opting-out
If a work-seeker opts out, this condition does not apply and it is common then to have a six or 12 month ‘restriction’ clause in place.
If a work-seeker does not opt out, the maximum period during which a restriction can prevent direct dealings with an end-client hirer will be no longer than 18 weeks.
Opting Out
The Regulations permit individuals to opt-out of the regulations if they are working through a limited/Umbrella company, and:
If a work-seeker chooses to opt-out of the regulations, they must agree to do so before they are introduced to their end client hirer. Both the work-seeker and their Limited/Umbrella company must opt-out of the regulations together. The opt-out is ineffective if only one party opts out or if the work-seeker opts out after they have been introduced to the end client hirer.
A worker can also decide to opt back into the regulations if they choose to do so at a later date but they must give notice to their Employment Business (and their PSC/Umbrella) that it is their intention to do so
Further information can be obtained by calling a Champion Advisor on 0161 703 2549.