Storm Contract 'opting out'?
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Joined: Feb 2006
Posts: 6
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From: uk
Storm Contract 'opting out'?
I'm switching over to Storm from BRK, does anyone have any idea what this 'opt out' thing below is all about when you sign up? I never had this when I signed up to BRK! Pro's 4&5 might be useful but the cons not so much! Any legal minds out there able to help? Thanx FT.
RE: The Conduct of Employment Agencies and Employment Businesses Regulations 2003 and contractors
The above Regulations, which control how recruitment companies conduct their business, came into force on 6th April 2004. The Regulations affect how we deal with ‘temps’ and also covers our dealings with contractors. However, after prolonged lobbying from various interest groups, the Government adopted a proposal which enables limited company contractors, such as you, to opt out of the Regulations. If you opt out then the Regulations will not apply to dealings between you and us. The Regulations are located here: The Conduct of Employment Agencies and Employment Businesses Regulations 2003. Although it is not possible for us to explain all of the Regulations to you, we have set out in brief below some of the pros and cons of opting out:
Pros - Advantages of opting out
1. no increase in administration or forms to complete which could result in increased margins/costs to you
2. avoid potential delays in starting your assignments
3. less statutory restriction on your ability to substitute or sub-contract
4. avoid any implication that you are under the Client’s control at all times (although you may agree to be)
5. will assist in demonstrating that you operate outside IR35
6. easier to show you are in business on your own account
7. increases your marketability to Clients & recruiters looking to reduce administration and place Candidates quickly
8. only one negotiation of contract terms in each case (rather than at the outset and at point of assignment)
9. less requirements on you to provide information and confirmations
10. more attractive to umbrella companies as they avoid increased statutory requirements
Cons - Disadvantages of opting out
1. no additional protection regarding potentially onerous contract terms (existing statutory protection remains)
2. no statutory entitlement to information regarding health and safety (although our terms deal with this)
3. no minimal protection when required to work away from home
4. no added protection regarding confidentiality (although Data Protection Act still applies)
RE: The Conduct of Employment Agencies and Employment Businesses Regulations 2003 and contractors
The above Regulations, which control how recruitment companies conduct their business, came into force on 6th April 2004. The Regulations affect how we deal with ‘temps’ and also covers our dealings with contractors. However, after prolonged lobbying from various interest groups, the Government adopted a proposal which enables limited company contractors, such as you, to opt out of the Regulations. If you opt out then the Regulations will not apply to dealings between you and us. The Regulations are located here: The Conduct of Employment Agencies and Employment Businesses Regulations 2003. Although it is not possible for us to explain all of the Regulations to you, we have set out in brief below some of the pros and cons of opting out:
Pros - Advantages of opting out
1. no increase in administration or forms to complete which could result in increased margins/costs to you
2. avoid potential delays in starting your assignments
3. less statutory restriction on your ability to substitute or sub-contract
4. avoid any implication that you are under the Client’s control at all times (although you may agree to be)
5. will assist in demonstrating that you operate outside IR35
6. easier to show you are in business on your own account
7. increases your marketability to Clients & recruiters looking to reduce administration and place Candidates quickly
8. only one negotiation of contract terms in each case (rather than at the outset and at point of assignment)
9. less requirements on you to provide information and confirmations
10. more attractive to umbrella companies as they avoid increased statutory requirements
Cons - Disadvantages of opting out
1. no additional protection regarding potentially onerous contract terms (existing statutory protection remains)
2. no statutory entitlement to information regarding health and safety (although our terms deal with this)
3. no minimal protection when required to work away from home
4. no added protection regarding confidentiality (although Data Protection Act still applies)
Joined: Aug 2011
Posts: 231
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From: far too low
Don't work for Ryanair. But seriously think what advantage is it to you to opt out of law designed to protect you as a worker. This law could in the future potentially force Ryanair to make you an employee (if someone is brave enough to test it). Why do they want to stop you becoming one? The advantages just don't add up.
