Key Information Document (KID)
Everything you need to know about Key Information Documents.
What is a KID?
Starting April 6th, 2020, the government mandates that new agency workers receive a Key Information Document (KID) before finalising terms with an employment agency. This document contains crucial information aimed at enhancing transparency, especially regarding pay.
While this regulation doesn’t affect agency workers already under contract with an employment agency, they will receive a KID upon engaging with a new agency.
The KID provides an overview of how fees and deductions will impact the worker’s pay throughout the labour supply chain, empowering them to make informed decisions about assignments based on their take-home pay after accounting for agency fees and deductions.
A KID must provide:
The government has released comprehensive guidance outlining the essential information required in the Key Information Documents. This encompasses fundamental elements like the employment business or agency’s name, pay rates, responsible party for payment, and anticipated fees and deductions.
Furthermore, the government has made available diverse templates for agencies, umbrella companies, and Personal Service Companies to furnish individual workers with the required details.
Inside IR35 Umbrella Companies
Example Key Information Documents by umbrella company.
In cases where an intermediary or umbrella company is part of the labor supply chain, the employment business remains responsible for producing the KID. This document must be distributed to both the intermediary or umbrella company and the individual agency worker. This measure guarantees that workers are informed about the deductions occurring throughout the labor supply chain.
It’s crucial for the worker to clearly discern the variance between the gross amount disbursed by the employment business to the intermediary or umbrella company and the final net sum received by the worker.
Click to view example Key Information Documents:
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