Supplying limited company contractors
Factors to consider when a limited company hires work-seekers.
If you supply work-seekers who provide their services through a limited company such work-seekers are covered by these rules (unless they have given notice to opt out - see below). Any references to a work-seeker in this guide also includes a work-seeker that is a limited company and, in most cases, the person who is or would be supplied by the 'work-seeker' (limited company) to carry out the work.
Limited company contractors and those persons they supply can agree not to be covered by the regulations provided they give notice to 'opt-out' of the regulations before they are introduced or supplied to a hirer.
Where an incorporated work-seeker has 'opted out' of the regulations, you must inform the hirer that the worker has 'opted out' and the regulations will therefore not apply.
A work-seeker can withdraw the opt-out notice after they have commenced working with a hirer but the withdrawal of the opt-out notice will only be effective when the work-seeker (or the person supplied to do the work) stops working in that position.
The 'opt-out' provision does not apply to those limited company work-seekers who will be supplied to work with vulnerable people.
Entering into contracts with hirers and work-seekers
Employment businesses
Where you operate as an employment business you cannot enter into a contract on behalf of a work-seeker with a hirer or on behalf of a hirer with a work-seeker.
Employment agencies
Where you operate as an employment agency you can only enter into a contract with a work-seeker on behalf of a hirer if the hirer has given you authority to do so. You can only enter into a contract with a hirer on behalf of a work-seeker if the work-seeker is seeking employment in the entertainment sector and the work-seeker has given you authority to enter into such contracts.
Whether you act for the work-seeker or hirer you must inform your client of the terms of the contract within five business days of entering into that contract.
When agreeing to the terms of a contract you cannot act on behalf of both the work-seeker and the hirer.