As of 6th April 2020, agency workers should be given a Key Information Document (KID) before they start a role through an employment business.
Key Information Documents (KID) were introduced by the government into the Conduct Regulations Conduct of Employment Agencies and Employment Businesses Regulations 2003 – Regulation 13A From the 6th April 2020, all workers engaging with employment agencies must be provided with a Key Information Document for their assignment before shaking hands and coming to an official agreement with an employment business (recruitment agency).
What should a Key Information Document do?
KIDs were introduced to provide transparency to agency workers and give them clarity regarding their payroll and expected take home pay.
What should a KID document cover?
- Provide workers with a genuine indication of their take-home pay.
- Clearly explain all deductions and fees.
- Confirm agency workers are not going to be paid below the National Minimum Wage (NMW).
- Show all deductions made to an agency worker’s pay. For example, these will include tax, National Insurance, the umbrella company’s margin, Employment Costs (Employers’ National Insurance Contributions and the Apprenticeship Levy), and any relevant additional deductions (such as pension contributions and student loan repayments).
- Consider different payroll solutions available to the agency worker – for example, agency PAYE or PAYE umbrella – and compare them.
- And be generally accurate, there will always be minor variations in figures.
If you are a contractor, freelancer, or agency worker and you engage with employment agencies, you should automatically be issued with a KID document before you agree to any official employment arrangements.
If one isn’t forthcoming, make sure you request one and ask why you’ve not been issued with one as it’s a legal requirement.
