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As Europe’s first specialist Salesforce Recruitment company, we have been placing marketing automation, test automation and Salesforce contractors since 2007. We are committed to providing a unique service and delivering a high level of customer service to all of our contractors. Please click here to download our guide on contracting through Resource On Demand.
If you are looking for insurance cover for your Limited Company, you may find the list of specialist insurers below of interest:
EEA opt out form
Why should a limited company contractor consider opting out of the Regulations?
Some Limited company contractors take the view that operating under the Agency Regulations may place them at a disadvantage in securing a contract assignment. Their belief is, that the additional procedural requirements imposed upon the employment business and the Client may delay the evaluation of that Limited company contractor relative to a contractor who has opted-out of the Agency Regulations.
The reason behind this thinking is that some clients appear to be concerned about the employment risk of Limited company contractors seeking to opt in to the Agency Regulations, and becoming treated in law as permanent staff. Consequently, some clients, fearing that a Limited company contractor could be considered more akin to a temporary employee rather than an independent contractor, and therefore may only select those contractors who have opted out of the Agency Regulations.
What are the benefits?
Opting out means:
- You will have some recognition of your status as “in business” on your own account.
- Limited company contractors seeking to challenge the application of IR35 to their services could be more likely to be assessed within IR35 if the Limited company contractor is subject to the Agency Regulations. This is because some view the Agency Regulations as principally applying to protect the supply of individual workers who are similar to temporary employees, which would undermine any arguments of a Limited company contractor seeking to challenge IR35.
- You are less likely to be treated like a temporary worker by your agency or Client, as you will more clearly be engaged on a commercial footing. Sometimes opted-in contractors may find they are given contract terms which are the same or similar to those that a temporary employee would be subject to.
- You may find yourself in a better position to negotiate commercial terms with the agency and Client.
- If you are opted-out you can have a more IR35 friendly contract. For example, you can be held responsible for your work (and fixing errors in your own time) which is a good indicator that the contract is a business-to-business contract and therefore outside IR35. You cannot include this clause if you are opted-in.
Opting in means:
- You have some protection against late payment or failed payment from the agency.
- You are protected from handcuff clauses, should you decide to go permanent.
- You have the legal backing of the Employment Agency Standards Inspectorate, to deal with any disputes that come under the scope of the regulations.
What is ROD’s view on opting in or opting out of the Agency Regulations?
ROD offer all limited company contractors the choice of opting in or opting out of the Regulations.
How should a limited company contractor opt out of the Agency Regulations?
Limited company contractors who wish to exercise their right to opt out of the Agency Regulations must notify ROD in writing prior to their contract assignment commencing. Alternatively, you may use the form supplied by our consultant or by downloading the opt out form.
Further information about EEA Regulations can be found here.
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