Why does PCR recommend that LCCs opt-out of the application of the Conduct Regulations?
It is the choice of the LCC whether or not to opt-out. Obviously the LCC should seek their own advice on whether or not to opt-out. However, PCR recommends that LCCs opt out for the following reasons: PCR complies with best practice which already gives sufficient protection to limited company contractors and consultants. PCR believes that the Conduct Regulations are designed to protect workers at the lower end of the market (for example, low paid workers in the hotel and catering industries) to ensure that they are paid a living wage, are not exploited and are told in clear terms what services the staffing company will provide them with. Limited company contractors and consultants are at the top end of the market, are highly paid, PCR always makes them aware of the terms and conditions between them and PCR and finds them assignments with reputable clients. If LCCs do not opt out of the Conduct Regulations, this may compromise their tax status under IR35, i.e. it may increase the chance
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