Commercial terms
What is opting out of the Conduct Regulations?
Opting out is an election available to limited company contractors, and the company supplying them, to disapply the Conduct Regulations to their engagement. It must be agreed before introduction to a hirer.
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</figure>It is available only in defined circumstances and only to work-seekers supplied through their own company. It does not apply to PAYE temporary workers, and an opt-out purportedly signed by one is ineffective.
The timing rule is strict: the opt-out must be given before the work-seeker is introduced to the hirer. Signed afterwards, it does not take effect for that engagement however willingly it was agreed.
It is excluded where the work is with vulnerable persons, which is a category defined in the regulations rather than by the parties' view of the role.
What goes wrong in practice
- Opt-outs collected at onboarding as standard paperwork, after introductions have already been made.
- Presented to PAYE workers, for whom they have no effect.
- Applied to assignments involving vulnerable persons, where the opt-out is not available.