ACT 2003


In 2003 the government passed the Employment Agencies Act through the Houses of Parliament. The Act became effective on the 6th April 2004 and applies to ALL employment agencies and businesses.

The legislation has been introduced to help regulate our industry, introduce common practices and to ensure that temporary workers are not disadvantaged by the actions of agencies. Full details of The Employment Agency Act can be found at http://www.legislation.gov.uk.


Effects of opting out of the Agency Regulations

A contractor who operates as a limited company contractor who has opted out of the regulations will not be required to comply with procedural requirements of the Agency Regulations. There will also be no procedural requirement upon the recruitment agency to obtain certain information from the client before placement of the limited company contractor. In addition, certain contractual amendments need not be applied to the contract documentation.


Then why opt out?

The EAA has been in consultation since 1999. One of the major concerns raised by the Recruitment and Employment Confederation, our governing body, and various contractor interest groups is the EAA effect of the employment status of the Limited Company Contractors and its interaction with IR35.

Regulation 12 prohibits withholding of payment if a timesheet is not produced but the agency can independently verify hours worked. The reference in the regulation to hours worked could, in some cases, call into question the amount of financial risk that a contractor is taking.

For the purposes of establishing whether an assignment falls within the scope of IR35, financial risk is one of the key areas that is considered by the Inland Revenue. We would urge you to take professional advice to establish the best course of action for you.



EEA Opt Out Form

For use by Limited Company Contractors wishing to opt out of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (Conduct Regulations 2003).


There is provision in the Conduct Regulations 2003 for companies and those whose services they supply, to opt out of the said regulations. If, you, the Consultancy / Contractor, and the Individual to be supplied wish to opt out, please read this form carefully. It is recommended that if you are unsure of the regulations that you take independent legal advice


  • This Opt Out Notification is supplemental to the agreed Terms and Conditions “The Agreement” associated with the assignment which exist between the Employment Business and the Consultancy / Contractor. The terms used in this Notification shall have the same meaning as those defined in the Agreement.

  • The Consultancy / Contractor and the Individual acknowledge that it is their intention that the provisions of the Conduct Regulations 2003 do not apply to the Assignment as agreed between the par ties.

  • The Parties have freely entered into this Opt Out Notification.

  • The Individual is free to withdraw from this Opt Out notification at any time by giving not less than one week’s written notice to the Employment Business. However, where notice is given during an assignment it will not take effect until the Individual stops working on the current assignment.

Opt Out

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EEA Opt In Form

If you wish to opt in to the regulations, please select "Opt In" in the following form. Once you have commenced an assignment you will not be able to opt out until that assignment has ceased.

Opt In

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