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Do I Need to Opt Out of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (CEAEBR)?

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CEAEBR came into effect on 6 April 2003 to govern the conduct of the private recruitment industry and establish a framework of minimum standards which both contractors and end clients are entitled to expect.

If you are working through a Limited company you will be asked to sign a form to show that you wish to either 'opt in' or 'opt out' of these regulations, your umbrella company will not be able make this decision for you, although their signature will be required as well.

If you are 'opted-in' an employment business cannot withhold payment to a worker because it has not been paid by the hirer or end client. Nor can it refuse payment because the worker has not produced an authenticated timesheet.

The Department of Trade and Industry (DTI) guidance says if the hirer has not signed the timesheet because it is unhappy with the standard of work, this is a contractual matter to be resolved between the hirer and the employment business. It does not affect the worker's right to be paid.

It is worth noting that you will need to state whether you wish to 'opt in' or 'opt out' of the regulations before the start of your contract.  If you decide that you want to change your 'opt in, or 'opt out status' once your contract has begun, you will need to wait until the end of the contract for this to take effect.  You will also need to state whether you wish to opt in' or 'opt out' for each of the assignments you undertake. 

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