Important Information regarding the Conduct of Employment Agencies and Employment Business Regulations 2003

Reg 32 | Proof of identification

The U.K. government In April 2004 introduced new legislation regulating the recruitment industry, affecting many aspects of the recruitment process, including: accounts, advertising, record keeping, health and safety.

The regulations apply to all recruitment companies and include companies introducing candidates to prospective employers, this also applies to the supply of limited company contractors, whether supplied via a personal service company, umbrella company or composite company unless the limited company contractor has opted out of the application of the new regulations in accordance with Regulation 32.

The new regulations will therefore apply to your current assignment, unless you choose to opt-out of the application of the regulations prior to commencing supply of such services.

Why consider opting out?

The regulations use the assumption that any limited company contractor undertaking an assignment while opted in to the regulations will be acting under the supervision and control of the client for whom they are providing their services. This is due to the definition of "work-finding services" which includes the phrase "under the control of". This could and is likely to have an adverse impact on the operation of IR35 therefore we understand that many limited company contractors will want to opt out of the regulations.

The regulations became law from April 2004 however have been in final draught stages for over 2 years and Recruit Associates Worldwide Ltd. has been using these draught guide lines since 2002 as recognised standards for recruitment companies. As a result, your decision to opt out of the application of the regulations will not affect the standard of service which Recruit IT Ltd offers to its candidates and consultants.

Information regarding the Conduct of Employment Agencies and Employment Business Regulations 2003 can be found at the HMSO website. Details of the links for both these sites are provided below:

Click here for HMSO website

Click here for DTI pdf download

Standard Opt-Out Notification.

For further information and to ask any questions related to the impact of the Conduct Regulations, please address your queries to our Contracts department at: contracts@recruitassociates.com