Running an employment agency or business

Supplying limited company contractors

Guide

If you supply work-seekers who provide their services through a limited company such work-seekers are covered by these rules (unless they have given notice to opt out - see below). Any references to a work-seeker in this guide also includes a work-seeker that is a limited company and, in most cases, the person who is or would be supplied by the 'work-seeker' (limited company) to carry out the work.

Limited company contractors and those persons they supply can agree not to be covered by the regulations provided they give notice to 'opt out' of the regulations before they are introduced or supplied to a hirer.

Where an incorporated work-seeker has 'opted out' of the regulations, you must inform the hirer that the worker has 'opted out' and the regulations will therefore not apply.

A work-seeker can withdraw the opt-out notice after they have commenced working with a hirer but the withdrawal of the opt-out notice will only be effective when the work-seeker (or the person supplied to do the work) stops working in that position.

The 'opt out' provision does not apply to those limited company work-seekers who will be supplied to work with vulnerable people.

Entering into contracts with hirers and work-seekers

Employment businesses

Where you operate as an employment business you cannot enter into a contract on behalf of a work-seeker with a hirer or on behalf of a hirer with a work-seeker.

Employment agencies

Where you operate as an employment agency you can only enter into a contract with a work-seeker on behalf of a hirer if the hirer has given you authority to do so. You can only enter into a contract with a hirer on behalf of a work-seeker if the work-seeker is seeking employment in the entertainment sector and the work-seeker has given you authority to enter into such contracts.

Whether you act for the work-seeker or hirer you must inform your client of the terms of the contract within five business days of entering into that contract.

When agreeing the terms of a contract you cannot act on behalf of both the work-seeker and the hirer.

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