The "Agency Regs": Opting in and opting out

The Government proposed to regulate the private recruitment agency industry in 2000. As freelance contractors obtain much of their work via agencies, PCG took a keen interest in the proposed regulations and responded to several rounds of consultation.

As a result of this dialogue, PCG was able to secure an opt-out for limited company contractors, which offers them flexibility without enabling unscrupulous agencies to force contractors to opt out.

PCG recommends contractors judge for themselves whether to opt in or out; there is no "right" answer and individual circumstances and preferences are always important.

If you are being pressured to opt out against your will by an agency, see the Guide below for details of how to report them to the Department for Business, Enterprise and Regulatory Reform, or email your complaint to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

The Conduct of Employment Agencies and Employment Business Regulations 2003 came into force in April 2004 and limited company contractors are within their scope.  

Guide to Agency Regulation

PCG comment on proposed regulations
A response by PCG to government consultation in 2002