The ‘KID’ regulation came into effect on 6th April 2020 but with so much going on in the world at the time, many recruitment agencies are unaware that this is now a legal requirement. The Employment Agency Standards will enforce compliance with this new regulation as they currently do with the rest of the Conduct Regulations. Therefore, it’s imperative to understand what a Key Information Document is and that all your workers are receiving a ‘KID’ prior to an assignment.
What is the regulation?
From 6th April 2020, all agency workers must be given a key information document before agreeing terms with an employment business. The key information document will be one of the first things an agency worker receives, typically at point of registration but certainly prior to an assignment. The regulation does not apply to agency workers with existing terms with an employment business, but they will be entitled to a key information document when they sign up with a new employment business.
For further reading on key information documents –https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/865808/key-information-document-for-agency-workers-business-employer-guidance.pdf
What’s the purpose of the regulation?
The key information document is intended to improve transparency of information for agency workers, particularly around pay. It will give agency workers more immediate access to key pay related information before agreeing terms with an employment business and a clear idea of how any fees and deductions will affect their pay.
Businesses are not expected to include all relevant contractual information within the key information document. Its purpose is to present key information in order to give agency workers a brief overview of how their prospective terms of engagement affect their pay over the course of an assignment. The figures in the key information document will demonstrate how a proposed rate of pay is affected by fees and deductions made throughout the supply chain.
As an agency if you use an umbrella company you must ensure that you have checked with them that they are taking this seriously and what they are doing to make sure they are complying to the legislation. If you are using an outsourced finance and back office provider, also ask whether there’s anything within their software provided to help you comply with the new legislation. Quba Solutions implemented a KID on our software, DynamiQ, to help our agency partners ensure they are complying with the KID legislation from the start.
Where does Quba Solutions help on this?
For all Quba Solutions’ agency partners, the KID is sent out upon an assignment being completed on our platform, DynamiQ. This is stored on the candidate’s assignment record and will remain on the platform indefinitely, even if the candidate’s assignment has been made inactive. This ensures our agency partners are complying to the EAS regulations and their requirement of having this document retained for a minimum of 12 months since work-finding services last occurred.