Key Information Documents were introduced on 6th April 2020 to increase pay transparency for agency workers and provide key information regarding their assignments. The new legislation inserts an amendment into the Conduct of Employment Agencies and Employment Businesses Regulations, or ‘Conduct Regulations’.
What does this mean?
Under this new legislation, work-seekers are entitled to receive Key Information Documents (KID) from their employment agency before they accept an assignment.
The responsibility for providing this document always sits with the agency. HMRC guidance states that you may rely on information provided to you by a third party, for example, an Umbrella company if they are the employer.
What this means for agencies
Agencies must provide details of the work seekers likely gross pay and deductions at the point they become a ‘work seeker’, – this means the point at which they register with your recruitment agency and in advance of being paid.
This applies for workers that you plan to engage on your own payroll (in house PAYE), via an umbrella company or through their own Personal Service Company (PSC). This may mean having multiple KID documents available to provide to the work seeker.
What this means for umbrella employees?
Simply put – Increased transparency. The Key Information Document will be provided to the work-seeker prior to terms being agreed and this means that work seekers will understand the deductions that will be made from their pay prior to deciding as to whether to accept the assignment.
Help for agencies.
Key Information documents should be simple and easy to understand – one side of A4 would cover it. They are not contracts but simply key information. Templates are available to download from gov.uk and we’ve linked them below for you;
- Key Information Document for PAYE workers
- Key Information Document for Umbrella Workers
- Key Information Document for Agency workers who provide their services via a Personal Service Company (PSC)
Get in touch for more information! Email: Support@umbrellaphant.co.uk