When you are about to take up a contract with an employment agency, they will ask you if you want to “Opt In” or “Opt Out” on the contract offered.

Conduct of Employment Agencies and Employment Businesses Regulations 2003 (the Regulations) govern the conduct of the private recruitment industry and establish a framework of minimum standards that clients, both work-seekers and hirers, are entitled to expect.

From 6 July 2004 the Conduct Regulations are to be extended to cover work seekers who supply their services through a limited company, known as Limited Company Contractors.

Once you have accepted a contract, you will be issued with a contract from the recruitment agency that also includes an “Opt Out Notification”.

Regulations are designed to protect employees working with agencies, however as you are operating through a limited company you are not an employee of the agency which is governed by the rules.

Please note that this is an outline of the rulings and you should get independent tax and legal advice before making a decision.

You can find further information by going to www.dti.gov.uk or to www.rec.uk.com