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Abraxas
Latest Employment Legislation
The Conduct of Employment Agencies and Employment Businesses Regulations 2003OVERVIEW
The aim behind the regulations is to improve protection to ‘workers’ by granting additional rights.
The definition of ‘worker’ includes contractors who work through limited companies, as well as those who are subject to PAYE.
The regulations apply to all sectors of the temporary market, from cleaners to IT contractors, and are designed to cut off some of the unacceptable practices that have been reported as occurring in certain sectors, such as cleaning, modelling, and the construction industry.
There is the option to “opt out” of the Regulations, and, although we can not insist that you do so, we suggest that you seriously consider the advantages, some of which are stated below.
WHY OPT OUT?
1. The Regulations tackle a number of abuses that are not practised in the IT sector, e.g. being forced to take an assignment. Contractors have always had, and continue to have the right to accept or reject an offer of an assignment.
2. The Regulations increase significantly the administrative burden on Abraxas, and if you are not opted out these have to be completed before we can submit your details to Clients. This means your application will be delayed whilst we await for information from you, and the additional time this requires may reduce your chance of success for a position.
3. The Professional Contractors Group (PCG) was very involved in the introduction of the opt out facility, and we understand that their general advice is to “opt out”. For more information please see www.pcg.org.
4. It is put forward that the regulations are not written for a business to business relationship, but instead are more of a ‘master-servant’ one. IR35 is about the relationship between you, the contractor, and the client. In the right circumstances/situations, by “opting out” it will serve to strengthen the argument that your relationship is a business to business one, and that you are in business for your own account.
5. It distinguishes contractors from PAYE candidates.
6. It demonstrates to us, and our clients that the contractor has made a conscious decision to become businesses themselves, and are committed to this style of work.
If having read this you wish to “opt out”, please complete the opt out form.