Recruitment Law: The Importance of Knowing the Regulations2

By: Mandy Leonard
Firstly, consultants should always read the contracts which go out to their contractors. If at any point a contract uses terms like "the employee" or "the team" this can be considered implied employment. The contractor must always be referred to as "the Limited Company" or "the Company". That is because the contract is with the Limited Company, not the individual contractor, hence the presence of the right of substitution clause.

It needs to be reinforced that any contractual negotiations or annual leave must go through the agency. As the contract is between the agency and the client, the contractor and the client have no legal grounds to make these negotiations, only the agency can negotiate with the client on behalf of the Limited Company. It is recommended that recruitment consultants understand the basics of the IR35 regulations. These are all laws which govern the industry that you work in and can have a direct impact on your working life.

To learn more, speak to your agency's legal team. They should be in a position to provide training and information about the regulations and give a deeper understanding about the nuances of contract law. For more information on the Muscat vs. Cable & Wireless Plc case visit : http://www.msi-network.com/Content/general/UK_employment_law_update_3.aspx

Look beyond the sales and understand your industry. Not only will you be protecting your clients and your contractors, you will be building trust with them making yourself a consultant they will want to work with again and again.

Mandy Leonard is a co-founder of Enabled IT, which specializes in working in partnership with clients to provide a customer centric recruitment solution. With experience in both the recruitment and technical sector, she has specialized in sales and management training to optimize the abilities of sales forces. For more information please visit http://www.mandyleonard.com or e-mail contact@mandyleonard.com Copyright (c) 2007 Mandy Leonard

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