Code of Conduct – Explained
The Conduct of Employment Agencies and Employment Business Regulations 2003
The Conduct of Employment Agencies and Employment Business Regulations 2003, or more commonly referred to as the Conduct Regulations, were introduced to provide a minimum set of standards that must be adhered to when placing a work-seeker into a role in the UK.
What are the Conduct Regulations?
The Conduct of Employment Agencies and Employment Business Regulations 2003, (or Conduct Regulations or Conduct Regs), provide a framework of minimum standards that govern the conduct of the recruitment industry in the UK.
The regulations were implemented to ensure recruitment companies treat both the candidates (“work-seekers”) and clients (“hirer”) fairly.
Workers to whom a recruitment agency provides temporary or permanent work finding services are within the scope of the Conduct Regulations, regardless of the supply model they work through.
Contractors may opt-out of the regulations, but they must sign and return an opt-out agreement before starting the contract.
The Conduct Regulations cover:
Information Given
Information required from/given to the client and provided by/to the contractor.
Contracts
The contractual documentation which must be in place.
Payment Terms
When a contractor must be paid.
Transfer Fees
When transfer fees can be charged to the client.
What are the dis/advantages to contractors?
Contractors do suffer some disadvantages from opting out. For example, the agency is required to pay workers who are covered by the regulations even if they have not been paid; contractors who have opted out lose this protection.
Plus, the agency must agree terms with the contractor before introducing them to the client; this significantly reduces contractor flexibility in what is supposed to be a flexible, highly skilled labour resource.
In addition, if a contractor has opted out, then the agency can use restrictive covenants that can potentially restrict the contractor from using a competing agency or going to a competitor of the client.
There are other regulations relating to temporary-to-permanent fees, which can negatively impact on the client if they want to take the contractor on as an employee or a direct contractor.
What are the dis/advantages to contractors?
Contractors do suffer some disadvantages from opting out. For example, the agency is required to pay workers who are covered by the regulations even if they have not been paid; contractors who have opted out lose this protection.
Plus, the agency must agree terms with the contractor before introducing them to the client; this significantly reduces contractor flexibility in what is supposed to be a flexible, highly skilled labour resource.
In addition, if a contractor has opted out, then the agency can use restrictive covenants that can potentially restrict the contractor from using a competing agency or going to a competitor of the client.
There are other regulations relating to temporary-to-permanent fees, which can negatively impact on the client if they want to take the contractor on as an employee or a direct contractor.
What are the dis/advantages to contractors?
Contractors do suffer some disadvantages from opting out. For example, the agency is required to pay workers who are covered by the regulations even if they have not been paid; contractors who have opted out lose this protection.
Plus, the agency must agree terms with the contractor before introducing them to the client; this significantly reduces contractor flexibility in what is supposed to be a flexible, highly skilled labour resource.
In addition, if a contractor has opted out, then the agency can use restrictive covenants that can potentially restrict the contractor from using a competing agency or going to a competitor of the client.
There are other regulations relating to temporary-to-permanent fees, which can negatively impact on the client if they want to take the contractor on as an employee or a direct contractor.
Can a contractor withdraw an Opt Out Notice?
Yes, the contractor is free to withdraw from this Opt Out Notification at any time by giving not less than one weeks written notice to the Contractor.
However, where notice is given during any assignment that would be subject to the Conduct Regulations 2003, the notice will not take effect until the Individual stops working in the position in question.
We will also confirm to the agency, of the contractor’s intention to withdraw an opt out notice at the first opportunity. By providing this opt out, New Red Planet Ltd also agree to the Opt Out.
It is important to note that when working in some roles, opt out of the regulations is not allowed. Specifically, these roles involve the contractor working with vulnerable people, who are defined as those under the age of eighteen or who, by reason of age, infirmity, illness, disability or any other circumstance is in need of care or attention.
Don’t just take our word for it…
“We’ve worked with New Red Planet since December 2023 and they’re now our sole supplier of labour across multiple rail projects. Their reliability, professionalism, and flexibility set them apart, consistently meeting our needs and adapting at short notice.
The NRP team, led by Steve, provides consistent service and personal support, with clear communication across management and site workers. Issues are handled quickly and pay is always processed promptly and accurately.
Having both Umbrella and PAYE payroll options under one roof gives us a unique operational advantage and complete compliance.
NRP has proven to be a dependable, solution-driven partner and we have no hesitation in recommending them for any organisation needing high-quality labour supply.”
Dean Thomas,
Managing Director
“We’ve partnered with New Red Planet for over 9 years and they’ve consistently delivered a reliable, honest payroll service. Their adaptability and hands-on support stand out – not only do they manage payroll efficiently, but they’re always available to help our employees directly.
The flexibility of having both Umbrella and PAYE solutions under one roof makes the process smooth, responsive, and tailored to our needs. Steve, Phil, Stacy and the NRP team provide the kind of personal, committed service that truly makes a difference.”
Chloe Murphy,
Operations Director
“We’ve worked with New Red Planet since 2019 and they’ve consistently proven to be a reliable, professional partner. As our sole supplier, they provide seamless support for both our team and our workers, with clear communication and quick resolution of any issues.
Their prompt, accurate payroll builds trust across the board, and the flexibility of having both Umbrella and PAYE solutions under one roof is a unique advantage we haven’t found elsewhere. NRP’s consistency and responsiveness make them an invaluable partner.”
Jaimie Sinclair,
Managing Director
“We’ve worked with New Red Planet for almost 12 years and they’ve consistently shown reliability and professionalism as a payroll partner. They not only manage payroll efficiently but also provide our workers with outstanding customer service, resolving queries quickly and effectively.
Their dual-model payroll gives both flexibility and choice, with PAYE and Umbrella solutions offered at no extra cost, and all within full HMRC compliance. The NRP team deliver a seamless, personalised service, and we’d recommend them to any education agency seeking a dependable payroll provider.”
Ian Kennedy,
Company Director
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In order to opt out of the Conduct Regulations, please contact a New Red Planet customer service advisor today by calling us on 0161 713 1730 or click the button below to Get in Touch.
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