Employment Agency Regulations

In 2003 the Government introduced legislation to protect the interests of work seekers and also the way that Employment Agencies treat and pay their temporary workers. The legislation came into effect in April 2004 and all Agencies including Vertex IT Solutions must abide by the legislation.

Vertex IT Solutions however only offer contracts to workers who operate through Limited Companies of their own or through an umbrella Limited company. As part of the legislation Limited Company Contractors have been given the option of whether they would like to choose to opt out of the Employment Agency Regulations 2003.

The regulations include provisions, which a number of contractor organisations and advisors believe to be inappropriate for limited company contractors because:
They are considered to have a negative impact on both IR35 and IR591 status that many contractors seek.
They adversely affect the way that a contractor is able to participate in some Umbrella schemes.
They have adverse implications on a limited company being able to carry out on a business-to-business status.
They restrict a number of benefits that limited companies are able to reclaim to reduce Tax liabilities.
A lot of end clients will only accept “Opted Out” as they do not want to run the risk of being viewed as an employer of the contractor

A copy of the regulations in full can be viewed at
www.hmso.gov.uk/si/si2003/20033319.htm

All standard contracts issued by Vertex IT Solutions assume that as a contractor you wish to opt out of the regulations.

Should you decide to “Opt Into” the regulations you must notify us immediately as no contract can be issued or accepted without Vertex IT Solutions having taken a number of references concerning your citizenship and status to work in the UK,
Pending the supply of this information we will issue a separate “Opted In” contract