Your recruitment company may ask you to opt out of the Employment Agency Regulations which became law in 2004. The Regulations regulate the Employment Business industry and are intended to give protection to vulnerable ‘work seekers'. For the purpose of the Regulations both the individual and their limited company (i.e. the umbrella company) are considered work seekers and both are bound by the rules.

There is general consensus that the Regulations are not appropriate for individuals working through an umbrella company as the relationship is one of business-to-business. It is argued that the Regulations are more appropriate for minimum wage earners who have an employer-employee relationship.

Providing you do not work with vulnerable members of the general public, you can opt out of the Regulations with respect to any assignment that you are seeking, by ticking the relevant box in the disclaimer section on your FPS application form. By opting out you will reduce the amount of administration that your agency completes with the client and as such reduce the risk of delay in commencing the assignment.

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