The Conduct Employment Agencies and Employment Regulations 2019 go a step further than previous legislation set out in the 2003 Regulations and shines a spotlight on workers having a full understanding before the commencement of their engagement.

This meant that from the 6th April 2020 any worker engaging with a new agency needs to be provided with a Key Information Document (KID) to provide a clear outline of how they will be engaged and explaining a full breakdown from contract rate to net take home pay.

The KID provides greater transparency for the workers about the terms they are signing up to and will minimise any confusion prior to the beginning of an assignment. Bright Sky can assist you in providing a KID for you to include within your new joiner infromation pack and we have provided further details below:

What should be incuded on the KID?

• Basic information such as minimum pay rates and engagement
• All statutory and non- statutory deductions to be made from the contract rate
• Any holiday entitlement
• A representative example statement to demonstrate how the listed deductions will be made to an illustrative rate of pay. Real numbers must be used in the example statement, as opposed to simply listing the types of deductions or their method of calculation. However, the figures may be estimated and do not need to exactly reflect the specific rate of pay subsequently received by the worker. Ultimately the pay statement should demonstrate in a realistic way the deductions made to a proposed rate of pay and how these affect the take home pay.

Government guidance states:

• The KID should be easy to understand
• Should not exceed two pages of A4
• Include an expaination about what the KID is and the reason it has been issued
• State the contact details of the Employment Agency Standards (EAS) inspectorate at the top.
• The HMRC template can be found here Providing a ‘Key information document’ for agency workers: guidance for employment businesses – GOV.UK (www.gov.uk)

What is the process and who is responsible?

• All workers  must be provided with a KID
• Agencies should work closely with umbrella providers to ensure accurate informatuon is given to workers prior to commencemen of their engagement. Bright Sky will be on hand to assist in the explaination of the KID and in providning documentation however it does remain the liability of the employment business to issue the KID to both the umbrella and the worker. We are here to assist with any specific calculations needed.
• Should there be any material changes to the information an updated KID must be issued within 5 days – e.g student loan repayments, change of umbrella or payment frequency.
• Each assignment would not necissarily require a new KID unless there are any material changes.