The introduction of Key Information Documents came into force on 6th April 2020. The legislation incorporates a revision into the Conduct of Employment Agencies and Employment Businesses Regulations, or ‘Conduct Regulations.’
The purpose of the implementation of Key Information Documents was to increase pay transparency for agency workers and provide key information regarding their assignments.
So what does this mean for your recruitment business? To clarify some points regarding this legislation I have outlined some key facts here:
- Added after Regulation 13 of the Conduct Regulations as Regulation 13A with effect from April 2020
- It only affects recruitment businesses, not agencies.
- The KID must describe and demonstrate all deductions that will be made from a candidate’s pay, including statutory and non-statutory deductions. That includes what deductions are made before and after any intermediary is paid by the employment business (if an umbrella is involved).
- The document must be called a ‘Key Information Document’ and give a brief explanation of what it is, together with details for the EAS.
- The financial information for PSCs will most likely be the same as what is included in an Assignment Schedule, but it is supposed to be provided before you enter into your contract with them, and if they are going through an umbrella the KID must be given to them too. You don’t have to calculate what the contractor will be paid by the PSC.
- The KID must not be more than 2 pages (although I have really struggled to fulfil that requirement!).
- If the candidate requests a copy of the KID after it has been issued, the employment business must provide within 5 business days.
- If any changes are made to the assignment that affect payment, the employment business must provide a new KID within 5 business days. Those changes are likely to be a new or extended assignment, a new type of deduction, or a change in the pay frequency.
As a recruiter, it’s vital to keep up to date with any changing legislation affecting the recruitment industry. If you require any assistance regarding your business’s legal issues please do not hesitate to contact one of the team members at Cognitive Law on 0333 400 4499.
Find out more about Cognitive Law here.