Working with agencies to find a new assignment can be an intensive process, so when you do find a new assignment, the last thing you need is ambiguity about rates, terms, and conditions.
Back in 2019/20, our government at the time also felt that a higher level of clarity was needed to help contractors fully understand their employment status on an assignment and how their assignment rate would be calculated.
That’s why in April 2020, employment businesses (recruitment agencies) became legally responsible for issuing agency workers a Key Information Document (KID).
What is a key information document?
A key information document, according to the government's Key information document: guidance for agency workers paid through umbrella companies, “should be the first document you receive from the recruitment agency looking for temporary work for you.”.
The KID should clearly define your relationship with your recruitment agency, confirm who will pay you and when you’ll be paid, and provide a breakdown of what deductions may affect your pay for the duration of your assignment.
Who should provide the key information document?
Your agency is responsible for providing a KID when registering you as an agency worker. It’s a legal responsibility that became law in April 2020, so If your agency fails to provide you with a KID, they are breaking the law.
When should a key information document be issued?
Your agency should issue a KID before agreeing to terms with you and before you begin an assignment through them.
They also have to provide an updated KID whenever changes occur to the key information contained within it. Changes could include a change in your workers' rights due to the Agency Workers Directive, a change in your pay frequency, or a new deduction of any kind.
Your agency must issue updated or requested KIDs within five days of any information change or request.
What should a key information document include?
Your KID should be separate from other documents and clearly titled the Key Information Document.
It should confirm the details of all parties in the supply chain, including you, the agency, and the umbrella company, where applicable.
The document should confirm the following:
- Who will be your employer?
- Who will have the responsibility of paying you?
- Details of your assignment rate.
- Payment intervals.
- Details of all deductions from your rate.
You can see a detailed list of the contents required for a KID by following this to the government's guidance notes, Providing a 'Key information document' for agency workers: guidance for employment businesses.
Alternatively, the team at TJW Contract Solutions is always happy to help. You can contact us on 01784 270300.
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