Issues to Consider

The Conduct of Employment Agencies and Employment Business Regulations 2003

In April 2004 new regulations regarding the status of temporary workers were introduced, awarding them new rights relating to sick pay, holiday pay and pension allowances. Interim managers are classified as temporary workers under the legislation and entitled to claim these benefits.

It is our recommendation, however, that Interim Managers opt-out of the regulations as, for executives working at this level, they blur the lines between permanent and interim appointments.

Our Interim Managers add value because they are objective in their views, distanced from corporate politics and interested only in providing the best solution for the client. One of the prime advantages of using an Interim Manager is to gain the input of a highly qualified senior executive without committing to the obligations of a permanent appointment when this may not be appropriate or necessary.

Opting-out of the EAA regulations

If working as a representative of a limited company, Interim Managers can exempt themselves from the regulations.

• Distinguishes our Interim Managers from PAYE candidates who are often in-between jobs and are focused on seeking permanent roles rather than on providing a quality solution to our clients
• Demonstrates to us and our clients that our Interim Managers have made a conscious decision to operate with the maximum level of professionalism and are committed to their interim contracts
• By opting-out of the EAA regulations, we believe that Interim Managers will also reinforce their protection against IR35
• For more detailed guidelines on The Conduct of Employment Agencies and Employment Business Regulations 2003, please refer to the REC website at www.rec.uk.com.

Most Interim Managers work through a limited company

As most Interim Managers work through a limited company, they need to have adequate professional indemnity insurance to protect them against professional negligence claims. As part of our service level agreement with our clients, we insist that all Interim Managers placed on assignment have adequate professional indemnity insurance cover from £250k upwards.

There are a number of insurance companies and brokers offering professional indemnity (PI) cover to Interim Managers that can be found on the web. If you would like to arrange professional indemnity insurance in conjunction with setting up a limited company St James’s Place Partnership are well positioned and available to offer you advice.