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Is my ex-agency in breach of conduct regulations and if so, what can I do?

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    Is my ex-agency in breach of conduct regulations and if so, what can I do?

    Hi all

    Apologies if something like this has been posted before but most of my searches returned deciding to opt in/out.

    To give a bit of a backstory, I undertook a 6 month contract working through an agency which was extended twice. Towards the end due to both my parents being terminally ill, I missed out that my agency had stopped paying my invoices. Long story short, I am still pursuing these through legal matters but it looks like I am going to struggle with collecting (agency has shut down etc).

    However, I believe the agency may have breached conduct regulations and I am unsure what this means, if anything?

    The agency provided an opt out form after interviews with the client but before starting work. I declined to provide it, and told the agency that I preferred to remain in (in person), never providing the declaration to them. However, I've reviewed the contract and it states that I agree to opt out. I've signed this but I think I based this on the position that it was not relevant without the declaration.

    Based on the legislation:

    Subject to paragraph (12), paragraphs (1)—(8) shall not apply where a work-seeker which is a company, and the person who is or would be supplied by that work-seeker to carry out the work, agree that they should not apply, and give notice of that agreement to an employment business or agency, provided that such notice is given before the introduction or supply of the work-seeker or the person who would be supplied by the work-seeker to do the work, to the hirer.
    Now as I understand it, if we're counting introduction as first time the work seeker saw my details or met me then the contract clause is not valid as it conflicts with the regulation. As I mentioned most guidance also requires a declaration to be signed by me and not just in the contract to be enforceable. So I think that I am protected by the conduct regulations - is this correct?

    Separately, with the primary objective of collecting debts owed, and secondarily on preventing this agency repeating their pretty horrific behaviour with other contractors, what does them being in breach of the regulations actually do for me? Could I make a claim against his professional indemnity insurance?

    If you have any questions, fire away and thanks for reading this rather lengthy post!

    #2
    In your position I would care far more about getting paid that about regulations opt out being signed or not. If you find the contract to be null and void, it's kind of moot, given that you both engaged in it anyway.
    The greatest trick the devil ever pulled was convincing the world that he didn't exist

    Comment


      #3
      Originally posted by BiA1987 View Post
      Hi all

      Apologies if something like this has been posted before but most of my searches returned deciding to opt in/out.

      To give a bit of a backstory, I undertook a 6 month contract working through an agency which was extended twice. Towards the end due to both my parents being terminally ill, I missed out that my agency had stopped paying my invoices. Long story short, I am still pursuing these through legal matters but it looks like I am going to struggle with collecting (agency has shut down etc).

      However, I believe the agency may have breached conduct regulations and I am unsure what this means, if anything?

      The agency provided an opt out form after interviews with the client but before starting work. I declined to provide it, and told the agency that I preferred to remain in (in person), never providing the declaration to them. However, I've reviewed the contract and it states that I agree to opt out. I've signed this but I think I based this on the position that it was not relevant without the declaration.

      Based on the legislation:



      Now as I understand it, if we're counting introduction as first time the work seeker saw my details or met me then the contract clause is not valid as it conflicts with the regulation. As I mentioned most guidance also requires a declaration to be signed by me and not just in the contract to be enforceable. So I think that I am protected by the conduct regulations - is this correct?

      Separately, with the primary objective of collecting debts owed, and secondarily on preventing this agency repeating their pretty horrific behaviour with other contractors, what does them being in breach of the regulations actually do for me? Could I make a claim against his professional indemnity insurance?

      If you have any questions, fire away and thanks for reading this rather lengthy post!
      Sorry to hear about your parents.

      If the agency has shut down, it's rather immaterial whether they have breached the opt out regulations. Your big issue here is trying to recover money owed for your invoices which, Id suggest is a far bigger breach.

      But if they really have gone tits up, I think, unfortunately, you're between a rock and a very hard place.

      Comment


        #4
        Sorry to hear about your parents...

        Absolutely pointless going after breach using the opt out status. This is not material to the contract so unlikely to be an actionable breach anyway.

        On top of that the agency regs are a right crock. Next to no one understands them and even less are interested so very little point going down that route.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by LondonManc View Post
          In your position I would care far more about getting paid that about regulations opt out being signed or not. If you find the contract to be null and void, it's kind of moot, given that you both engaged in it anyway.
          Oh, that's absolutely the key motivator for me. At the moment the as was Director is playing silly buggers with me when pursuing the contract breach for non-payment, so I was wondering if following up on a breach of employment law might provide me with alternative options.

          Comment


            #6
            Originally posted by TheDogsNads View Post
            Sorry to hear about your parents.

            If the agency has shut down, it's rather immaterial whether they have breached the opt out regulations. Your big issue here is trying to recover money owed for your invoices which, Id suggest is a far bigger breach.

            But if they really have gone tits up, I think, unfortunately, you're between a rock and a very hard place.
            Thanks, I appreciate it. They've been pretty underhand, from what I can gather, and have used my revenues to fund a second business also owned by them.

            I'll be carrying on pursuing the fees through contract breach but it's a rather slow legal process what with Covid ongoing!

            Comment


              #7
              Originally posted by northernladuk View Post
              Sorry to hear about your parents...

              Absolutely pointless going after breach using the opt out status. This is not material to the contract so unlikely to be an actionable breach anyway.

              On top of that the agency regs are a right crock. Next to no one understands them and even less are interested so very little point going down that route.
              Cheers, I was unsure what impact they might have as technically they may have breached law rather than just contract, but I agree - the regs seem so difficult to assess and apply that I think it's easy to get distracted by them.

              Comment


                #8
                How much do they owe you? Is it just 1 month? Multiple months?

                Comment


                  #9
                  Originally posted by jayn200 View Post
                  How much do they owe you? Is it just 1 month? Multiple months?
                  Multiple months. Contract was backloaded in any case, the client was useless at actually signing worksheets, and VAT that had accrued. All in all a substantial amount of money.

                  Comment


                    #10
                    Originally posted by BiA1987 View Post
                    Multiple months. Contract was backloaded in any case, the client was useless at actually signing worksheets, and VAT that had accrued. All in all a substantial amount of money.
                    The good news on the VAT is that it's passthrough, i.e. you don't owe what you don't receive although you might want to ask your accountant about the intricacies of this as they (HM C&E) might construe the payment as part payment rather than payment with VAT withheld.
                    The greatest trick the devil ever pulled was convincing the world that he didn't exist

                    Comment

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