Employment Agency Regulations (Opting In/Out)

These regulations affect the relationship you have with your provider, and the relationship that your provider has with your client. By default you are opted in to the regulations, meaning that your provider must pay your fees regardless of whether your client has been paid by your provider. You therefore have a degree of protection if you are opted in.

However, if you are opted in, your provider is required to carry out extensive background checks on you, and because of this they may not wish to consider you for assignments.

For interim managers working through a limited company, there is an option to formally opt out of the regulations, and there are advantages in taking this course of action. By opting out you are showing that you are not controlled by your client, which also sends a positive message to HMRC about your employment status. This could have a beneficial effect with regard to IR35 and the Agency Workers Regulations.

It is therefore recommended that you opt out of the regulations, and this is done by signing a declaration before being introduced to the client. Your provider will help you with the documentation.