Opt Out Notification

**gook** · 23 November 2004, 10:37

I'm no expert on this, but I believe the opt in/out clause is being used by agencies with a varying degreee of intepretation and disclosure.

Basically this is aimed more for the low level contractor/temp and could benefit your rights if working through an umbrella. If you have set yourself up as a ltd, then best route (espcially if your contract is IR35 proof) is to opt out. Do read up on the area regarding length for going direct with client (if this is a future route for you).

Rules also state that the agency should raise this point prior to you meeting the client/sending out CV. They cannot enforce this upon you after this point (tell me off guys if I'm wrong).

Best to read up on the act for it's exact standing. It sounds like your agent is either being misleading (trying to say that it generally helps with your payment terms, etc) or they don't really understand it.

HTH

**mailmannz** · 23 November 2004, 10:52

Dont opt out...WHAT EVER YOU DO!

You would be a fool to opt out as the new regs cover both limited and private individuals. In fact...there is absolutely no benefit for you to sign out and certainly plenty for you to lose!

Dont be a fool...do not opt out! >:

Mailman

**gook** · 23 November 2004, 11:05

Apologies if I stirred up a hornets nest

Sorry I should have stated. Only opt out if you are confident of agent/client paying and you won't be shafted on the contract. Also you could use the opt out as a bargaining chip for a higher day/hour rate. You are taking more risk than the agent.

As mailmannz says, you do not have to opt out.

If the agent is trying to force you to opt out after having met the client or won the contract, they cannot really do this (legaly), but then again if they threaten you with saying no opt out, no contract then it is upto you to determine whether you want the work or not.

**mailmannz** · 23 November 2004, 12:28

I may have sounded a bit dramatic in my previous post

You can opt out now but then opt back in before you sign the contract (when you sign contract also send them a letter at the same time saying you are opting back in).

Once you have been offered the contract the ball is in your park (they would rather see you sign it and guarantee them some money than not sign it and lose them some money).

If they spin you some bs about IR35 dont believe it. Whether you are opted in or out makes no difference to the IR.

Regards

Mailman

**cheersthanksbye** · 23 November 2004, 12:30

Thanks for the advise.

To clarify my current position, I have attended the interview and got the contract. I use an umbrella company, they have received the contract and they are processing it as I speak!

The agency never mentioned this prior to my Cv being sent or I attended the interview, so as I understand they can no way impose it on me now. They are not insisting that I opt out – I have just recieved set of instructions along with my timesheets stating ‘agencies will favour’ contractors who do opt out.

From reading the mass of stuff I found on this on the web, as mailmannz says, to me it looks like I have nothing to gain by opting out and everything to loose. I see from the stuff I read, the regulations effect future work with the client (through another agency for example).

Thus, I think I would best all round by NOT opting out. Would be grateful if you guys could let me know if you reckon I am right.

Many thanks!

**mailmannz** · 23 November 2004, 14:39

You are right, do not opt out..especially if you want to go direct at the end of the contract (ie. cut out the middle man).

For a good read check this link out the regs explained (the important bits)

Regards

Mailman

**cheersthanksbye** · 23 November 2004, 15:16

One more concern I have regarding this.

I expect this to be a rolling contract. If I choose to 'opt-out' this surely wont have any implications of my contract being renewed?

An agency would not turn down 6 months income on account me not opting out, would they?

**mailmannz** · 23 November 2004, 15:41

No...it would not, especially if you work hard while you are there. Plus a month or so before the end of your contract you could always ask your manager if he knows if you will be extended at the end of the contract period.

NEVER leave these things to the agents to sort out...just in case they decide to **** you over.

Just as the agents will look after themselves...you need to look after yourself.

Mailman

**rebeccaloos** · 23 November 2004, 15:51

if you haven't opted out the first time round, you don't need to go through the agency for the renewal - negociate it yourself with your PM, and ask whether they are happy for you to go direct with them (they should, it saves them some money), so you can bump up your rate in the process

Opt Out Notification