- Fundamental details regarding the worker’s contract, including minimum pay rates and payment structure.
- Comprehensive information on both statutory and non-statutory deductions from the worker’s pay. While statutory deductions like PAYE tax may necessitate only a brief mention, non-statutory deductions such as an umbrella company’s margin must either specify the exact deduction amount or elucidate the calculation method.
Introduced in April 2020, a Key Information Document outlines important details about an agency worker’s employment arrangement. These documents provide clarity on various aspects, including pay rates, deductions, working hours, and holiday entitlements.
This is particularly important when a worker is operating via an Umbrella Company; the KID will outline the Umbrella Rate, and applicable employer deductions made by the Umbrella Company.
In accordance with guidance on gov.uk a KID must include:
- Disclosure of any holiday entitlements and non-monetary benefits available to the worker.
- An illustrative example statement to elucidate how the deductions listed will impact a hypothetical pay rate. This statement should incorporate real figures, although they can be estimated, to realistically depict the deduction process and its effect on take-home pay.
This should be formatted in-line with gov.uk guidance:
- Be easily comprehensible.
- Not exceed two A4 pages.
- Clearly designate sections.
- Provide a brief overview of its purpose.
- Display the contact details of the Employment Agency Standards (EAS) inspectorate prominently at the top.
What can Focused do for you?
The responsibility for producing a KID for the workers they place in work assignments (as outlined in the regulatory guidelines), lies with the Employment Agency [Recruitment agencies].
Focused can assist to facilitate compliance, we offer sample KID documents on our website and make updated versions available on our agency portal for contractors experiencing significant changes, such as opting into a pension scheme or undergoing deduction from earning orders.
We stand ready to assist our clients in fulfilling their KID obligations by providing document support and ensuring adherence to regulatory standards throughout the supply chain.
See how Focused can help
Simply call 0161 923 0210 [option 3] and let us take it from there.