Under new employment legislation, agency workers and contractors working through umbrella companies (or other payroll intermediaries) will be entitled to a Key Information Document before a contract is agreed and signed.
Background
From April 2020, all recruitment agencies must provide agency workers and contractors with a Key Information Document (KID) before they agree and sign up to an umbrella or limited contract. The requirement for this document has been introduced within Regulation 13A of the ‘Agency Conduct Regulations’ in a bid to encourage transparency along the supply chain.
What is a Key Information Document?
The government has published guidance on its website and outlines what should be included in the KID – further information can be found here.
The document aims to present important pay related facts which will give the worker a brief overview of what they will go on to earn in an assignment. It will also detail the deductions they can expect to see along the supply chain.
A key facts page within the KID will contain a representative example statement demonstrating how the listed deductions will be made.
Where employment businesses offer multiple methods of engagement – it is expected that different key facts pages corresponding to the different ways of paying their workers are drawn up. For example, the agency worker could be engaged through an intermediary or umbrella company or directly by the employment business. The KID must reflect the details of the arrangement.
When is a Key Information Document required?
The regulation applies to agency workers who sign up to a recruitment agency after the 6th of April 2020. The regulation also applies to contractors who continue to work with the same agency but change assignment. In both instances, a KID would need to be supplied and approved by all parties before a contract is signed.
A KID does not need to be supplied to workers who are already engaged with an agency and have pre-agreed terms in place – but they must be issued one if they sign up to a new employment business or change contracts.
Who is responsible for creating the document?
It is the responsibility of recruitment agencies to provide agency workers with a KID before they agree to, or sign a contract. If the worker is to be engaged through an intermediary or umbrella company, the recruitment agency will have to request this information from them.
Request a Key Information Document from Churchill Knight
To minimise the impact of KID’s on our agency partners, Churchill Knight has invested in, and developed a state-of-the-art webform which instantly generates the document and sends it directly to you. You can also opt to have this sent directly to your candidate, should you choose to.
You can request a PAYE umbrella Key Information Document here.
Please contact us if you require a Key Information Document for a Personal Service Company (PSC).
Partner with a knowledgeable accountancy and payroll provider
We understand that there is a lot of important information to take on board regarding the new legislation. To keep our recruitment partners up to date with the latest developments, we would be happy to arrange a meeting at your office to discuss how to make sure you are prepared for the changes.
Please contact us now on 0808 2525533 or email agency@churchill-knight.co.uk.
