What You Need to Know About the Conduct Regulations and Working Time Regulations

The Conduct Regulations

The Conduct of Employment Agencies and Employment Businesses Regulations 2003 (known as the Conduct Regulations or Conduct Regs) set out minimum standards that govern how recruitment agencies and employment businesses operate in the UK.

They exist to make sure both candidates (called work-seekers in the regulations) and clients (called hirers) are treated fairly throughout the recruitment process.

The Conduct Regulations are enforced by the Government’s Employment Agency Standards (EAS) team at the Department for Business, Energy and Industrial Strategy (BEIS), who investigate complaints and take action where agencies breach the rules.

These regulations have been updated several times since 2003 and, unless there’s a valid opt-out in place before the start of an assignment, contractors supplied via an umbrella company are treated as being within scope of the Conduct Regulations.

What the Conduct Regulations cover

The Conduct Regulations set out what information must be exchanged and what contracts must be in place between the agency, the hirer, and the contractor. They cover:

• The information that must be provided to and by the hirer and the contractor.
• The contractual documentation that must be issued before work begins.
• When a contractor must be paid.
• When (and under what conditions) transfer fees can be charged to the client.

Key protections for contractors

The regulations also provide specific protection for contractors during an assignment and ensure that:

• You are paid by the agency for work completed, even if the end client hasn’t yet paid the agency.
• The agency cannot unreasonably delay or withhold payment once you’ve submitted an approved timesheet.
• The agency must provide you with a written set of terms outlining key details such as the nature of the engagement, assignment length, and rate of pay.
• You cannot be prevented from working directly for the end client after the contract ends.
• You cannot be charged for work-finding services.

Who can opt out of the Conduct Regulations?

Under Regulation 32, certain workers – including those providing services through a personal service company (PSC) or umbrella company may choose to opt out of the Conduct Regulations, provided they are not working with children or vulnerable adults.

To be valid, the opt-out must:

• Be signed by both the contractor (or their PSC/umbrella) and the agency; and
• Be notified to the client before the assignment starts.

Once a valid opt-out is in place, the Conduct Regulations no longer apply to that engagement.

However, agencies cannot make opting out a condition of offering work. And in practice, some umbrella contractors prefer to remain opted in to keep the protections the regulations provide.

The Working Time Regulations

The Working Time Regulations 1998 (WTR) are all about how much you work, rest, and recover. They set legal limits on your average working week, minimum rest periods, and paid holiday entitlement.

The 48-hour limit

Under the WTR, you can’t be required to work more than an average of 48 hours per week, averaged over a 17-week reference period (or longer by agreement in some industries).

This includes:

• Time spent actually working
• Job-related training
• Travel for workers without a fixed place of work

It doesn’t include travel to and from your usual place of work, or unpaid breaks.

Opting out

You can voluntarily agree to work more than 48 hours a week by signing an opt-out agreement. This must be in writing, and you can withdraw it at any time by giving notice (usually seven days).

Some jobs – particularly those involving health and safety risks, don’t allow an opt-out. Your umbrella company or agency should tell you if that applies.

Rest and breaks

The WTR also ensure you get:

• At least 11 hours’ rest between working days
• At least one 20-minute break if you work more than six hours
• At least one day off each week (or two every fortnight)

If your assignment pattern makes this difficult, your client and/or umbrella should help you plan working hours to stay compliant.

What this means for umbrella workers

Because your umbrella company is your legal employer, it’s responsible for making sure you benefit from these rights, including rest breaks, working time limits, and paid annual leave.

However, the day-to-day control of your hours usually sits with the agency or end client, so it’s important to communicate any issues if your schedule risks breaching these limits.

If you’re ever unsure whether you’ve opted out or what rules apply to you, please contact us.

Quick FAQ

Need help or have questions?

If you’d like to understand how these rules apply to your contract or working pattern, the Dolan Accountancy team is here to help.