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Agency conduct regulations - IT contractors want to retain 'opt out'

Published on Jun 11, 2009 |

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Contractors surveyed about the proposed changes to the Conduct of Employment Agencies and Employment Business Regulations 2003, have stated overwhelmingly that they wish to retain the ability to "opt out" of the regulations.

The survey was carried out by the IT accountancy group, 1st Option.

A current consultation by BERR, which proposes to remove the "opt out", has met with concern and frustration.

Over 99% of the respondents to the survey, all of whom provide their services via a Personal Service Company, stated that they believed that their ability to operate effectively as a freelance professional would be negatively impacted by the proposed changes within the consultation paper.

The regulations which have been in existence for around 5 years were conceived to protect low-skilled and vulnerable workers from unscrupulous agencies and gang masters as well as to create an agreed framework for operating recruitment businesses.

In order that professional freelancers, for whom these regulations would have been cumbersome and impractical, were not unduly impacted, an "opt out" arrangement was included.

However recently the Government has become increasingly concerned that the "opt out" was being used by some recruiters to avoid their responsibilities. The Government is therefore considering its removal.

Commenting on the findings of the survey, 1st Option Director David Mount said:

"These findings show overwhelmingly how UK freelance professionals feel about the potential removal of the 'opt out' from them. In short it would do great harm. The original purpose of the Conduct Regulations was to protect the vulnerable and we support that.

"However, without retaining an 'opt out' for high end freelancers operating through their own Personal Service Company, Government would increase administration and bureaucracy for professional freelancers, and ultimately damage the economy."