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General
Designed for the engagement of professionals
Advantages for the Agency
Compliant with EAA & Conduct Regulations, includes prompt sheets for preliminary disclosures; recognises that professional engagements will often be outside the scope of the EAA
Mirrored terms - minimise risk
Variables (excluding rate) all in one common schedule, used for both client and contractor contracts
Reduces risk of error
Reduces administration
Rates are shown elsewhere, thus allowing for them to be kept confidential
Supported by PCG, thus credibility amongst contractors
Designed to be IR35 friendly
Uses Contracts (Rights of Third Parties) Act 1999 to allow direct enforcement of relevant rights by client against contractor, bypassing agency
Free, provided only the source is acknowledged
Advantages for client
A proper framework for engaging a professional
Same schedule used for client and contractor, so transparent
Uses Contracts (Rights of Third Parties) Act 1999 to allow direct enforcement of relevant rights by client against contractor, bypassing agency
Sets expectation of a professional relationship, where contractor carries responsibility for own performance
Flexibility of being able to terminate at any time without having to justify
Fair and balanced
Advantages for contractors
IR35 friendly � contractors can have firm confidence that , they have a sound framework for operating outside IR35, provided the contract reflects the reality
Passes PCG commercial terms tests (which few other agency contracts do)
Same schedule used for client and contractor, so transparent
Fair and balanced
Practical points
There are 3 files
Hire-on � this includes
Signature page, including rates
Terms
EAA notes (non-contractual, but intended to be provided to Client with terms at the outset and thereby to constitute the required disclosures in cases within the Conduct Regulations)
Hire-in � this includes
Signature page, including rates
Terms
EAA notes (non-contractual, but intended to be provided to Consultant with terms at the outset and thereby to constitute the required disclosures in cases within the Conduct Regulations)
Skeleton Opt-Out letter
Schedule - the assignment-specific provisions. NOTE that this same document is intended to form part of BOTH the Agency-Client and the Supplier-Agency Agreements; the document consists of
Table with details to be completed
Free-form service statement, with suggestions and examples for general style
At the outset of the relationships, and before making any introductions, the Agency should provide
the Client with the Hire-on document, excluding the signature page
the Service Provider with the Hire-in document, excluding the signature page
If the Service Provider and Consultant wish to Opt Out
They must sign and provide to the Agency the Opt Out letter, before any introduction is made and before any services are provided
The contracts for signature the agency should provide are as follows
The Agency-Client Agreement consists of
Hire-on (signature page and terms)
Schedule
the Supplier-Agency Agreement consists of
Hire-in (signature page and terms)
Schedule
Ref A05-04. Copyright � PCG Ltd 2005; licensed for use provided source acknowledged, all other rights reserved
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