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REC insists Limited Company Contractors should still be able to opt out

REC insists Limited Company Contractors should still be able to opt out

In its response to the consultation launched by the Department for Business, Innovation and Skills (BIS), the Recruitment and Employment Confederation has stressed that Regulation 32 -which allows limited companies to opt out of the provisions of the Employment Agencies Act - must remain.

Commenting on this, Anne Fairweather, the RECs Head of Public Policy, said: The opt out for people who operate through their own limited company has been of benefit to contractors and agencies alike since its inception. This is something REC strongly backed in 2003 when the current Regulations were agreed. REC has recommended that the opt out must stay.

The consultation also looks at the suitability checks required when making permanent placements.

On this, Anne Fairweather said: Although the removal of the requirement of checks could simplify regulation of recruitment processes, REC believes that checking candidates details is an essential part of the service provided by employment agencies.

Removing this as a regulatory requirement could assist members but we recommend that members are always clear with hirers about what checks they are making on candidates. The removal of the requirement would also resolve issues of enforcement, especially with online job boards.

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