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The Conduct of Agency Regulations 2003: What does opting in or opting out mean?

The Conduct of Employment Agencies & Employment Businesses Regulations (2003) or 'Conduct Regs', is a framework of minimum standards that apply to recruitment agencies to ensure that end clients and candidates are fairly treated.

Guidance for Work-Seekers on Employment Agency Regulations

When you are looking for work, it's crucial to know your rights and the obligations of employment agencies and employment businesses under the Conduct Regulations (The Conduct of Employment Agencies and Employment Businesses Regulations 2003).

These regulations were created to protect you, ensuring fair treatment and transparency in the job-finding process.


Key Points Covered by the Conduct Regulations:

  • Information Exchange:
    • Agencies and employment businesses must provide clear and accurate information to both clients and contractors.
    • This includes details about the job, pay, and any deductions or fees.
    • Before introducing or supplying a work-seeker, an agency or employment business must:
  • Verify the work-seeker's identity.
  • Ensure the work-seeker has the necessary experience, training, qualifications, and authorizations.
  • Confirm the work-seeker is willing to take the job.
  • For roles involving vulnerable persons and requiring professional qualifications, specifically confirm the work-seeker’s identity and relevant qualifications.
  • Contractual Documentation:
    • All terms and conditions must be documented and agreed upon before starting work.
    • You should receive a Key Information Document (KID) outlining important details like employment status, pay rates, and any fees or deductions.
  • Payment Regulations:
    • You must be paid for the work you have done, even if the agency has not been paid by the hirer.
  • Transfer Fees:
    • Agencies cannot charge clients transfer fees for hiring you directly or through another agency after a specific period:
      • Whichever is later; 8 weeks from your last workday for the hirer via the agency OR 14 weeks from your first workday.

 


 

Your Rights and Protections under Conduct Regulations:

  • No Fees for Job Finding: Agencies and employment businesses cannot charge you for finding a job, except for specific roles like entertainers and models.
  • Protection from Retaliation: Agencies cannot treat you poorly or threaten you if you leave or intend to leave their services. Poorly treatment, however, doesn’t include:
  • Losing future benefits: If you leave, you won't get benefits you would have earned if you had stayed (e.g., retainer/completion bonus).
  • Paying back losses: If the agency or business loses money because you didn't do the work you agreed to, they can ask you to pay for those losses (e.g., not giving agreed notice for termination);
  • Notice periods: It's okay for a contract to require you to give reasonable notice before you leave.
  • Privacy of Future Employers: You are not required to disclose who your future employer will be.

Conditions for Payment Withholding

Payment cannot be withheld for:

  • Non-payment by the hirer.
  • Lack of documentary evidence, if the work can be verified by other means.
  • Work not done in other periods.
  • Reasons within the agency’s control.

Information Provided to Hirers

Before supplying a work-seeker, the agency must verify:

  • The identity and nature of the hirer's business.
  • Job details, including role, location, working hours, health and safety measures, and required qualifications.

Specific Roles and Vulnerable Persons

For positions involving vulnerable persons or requiring professional qualifications:

  • Agencies must obtain and provide copies of relevant qualifications or authorizations.
  • Obtain two references from non-relatives and offer copies to the hirer.
  • Ensure the work-seeker is suitable for the role.

 

Opting Out of Conduct Regulations Summary:

 

Benefits

  • Speedy Onboarding: Agreeing to the opt-out streamlines your onboarding process by removing time-consuming agency compliance paperwork, allowing you to start your role sooner.
  • Supports IR35 Compliance: For those operating through a personal service company (PSC), opting out reinforces your status as an independent contractor. This can provide valuable supporting evidence for your outside-IR35 position.

 

Implications

  • Extended Restrictive Covenants: The agency may introduce longer or more robust restrictive covenants. These are designed to prevent workers from bypassing the agency to work directly with the end client.
  • Payment Protections: You waive certain regulatory protections regarding payment if the client defaults. However, in our experience, it is exceptionally rare for a reputable agency to withhold payment when signed timesheets are in place.

 

 

Link to Full Conduct Regulations

 

Still have questions?

Give our friendly Compliance Team a call on 0117 929 7863 (option 2) ☎️ or via compliance@nasagroup.co.uk ✉️