When an agency hires workers, it can feel like stepping into unfamiliar territory. Questions from workers about pay, deductions, and what they’re entitled to can be overwhelming. But there's a document that clears up all the confusion: the Key Information Document, or KID. In this blog, we'll discuss why KIDs are required to be issued by recruitment agencies, how to ensure compliance with the regulations, and how Giant Group, can support by offering a convenient solution to streamline the process of filling out KIDs.
What is a KID?
A KID is a document provided to agency workers by the recruitment agency. It serves as a comprehensive overview of the worker's engagement, outlining their relationship with the agency and any intermediary or umbrella company involved in their employment. While it focuses primarily on pay-related information and expected deductions, it also touches upon other essential details such as holiday entitlement and benefits.
" We offer a convenient solution to streamline the process of filling out KIDs. With our KID generator tool, you can quickly and easily generate accurate KID documents tailored to your agency's needs and the specific details of your workers."
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Who needs to complete them?
As a recruitment agency or business, the responsibility falls on you to complete and provide KIDs to the workers you place. It's essential to ensure that these documents accurately reflect the terms of engagement and are delivered before finalising any contractual agreements – it should be one of the first documents the worker receives from you. It's important to note that an umbrella company's involvement doesn't relieve your agency of this responsibility.
What should be included in a KID?
- The KID should be labelled as such at the top of the page
- A brief explanation about its purpose
- Contact details of the Employment Agency Standards (EAS) inspectorate
- The details of ACAS who can put agency workers in contact with EAS – Optional
- The name of the business responsible for employing and paying the agency worker
- Any deductions made by the intermediary or umbrella company from the assignment rate before calculating the agency worker’s pay rate
- Any deductions made from the worker’s pay rate to reach their net pay
- In length, the document should not exceed two A4 pages. If the content does not fit into two A4 pages, a summary of relevant information should be provided and a reference where complete information can be found.
When information in a KID such as the intermediary or expected deductions change, a new one must be issued to the worker.
When are KIDs needed?
KIDs are required to be provided to all agency workers before they agree to any contractual terms with the recruitment agency. This applies whether they are engaged directly by the agency, through an intermediary/umbrella or via their own limited company. This ensures that workers have access to crucial information about their engagement, empowering them to make informed decisions regarding their employment.
Please see the link of a document on what facts should be included in the key information document from the GOV.uk
What are the risks if a KID isn't provided?
Providing a KID is a legal requirement. Failure to supply a KID is a breach of the 2003 Agency Conduct Regulations and exposes agencies to significant financial and reputational risks.
Enforcement of the Conduct regulations and providing a KID, is monitored by the Employment Agency Standard (EAS) Inspectorate; failure to comply can result in penalties and legal claims from workers who have not received a KID. Other risks include:
Tax avoidance schemes: Without clear information on pay structures, this can lead to unwitting participation in tax avoidance schemes.
Mistreatment: The absence of a KID makes workers vulnerable to exploitation or unfair treatment.
Unlawful deductions: Lack of documentation outlining terms may result in unauthorised deductions from workers' pay, leaving them financially disadvantaged.
How we can help!
At Giant Group, we understand the importance of efficiency and compliance for your agency's operations. That's why we offer a convenient solution to streamline the process of filling out KIDs. With our KID generator tool, you can quickly and easily generate accurate KID documents tailored to your agency's needs and the specific details of your workers. This not only saves you time and effort but also ensures that your agency remains compliant with regulatory requirements.
By utilising our KID generator, you can expedite the documentation process without compromising on accuracy or quality. Whether you're managing multiple engagements or handling complex contractual terms, our tool is designed to simplify the process and provide peace of mind. Plus, our team is here to support you every step of the way. If you'd like more information on how our KID generator can benefit your agency, don't hesitate to reach out to us at hello@giantgroup.com .
In summary, ensuring the completion and provision of KIDs is crucial for safeguarding agency workers against exploitation, tax avoidance, mistreatment, and unlawful deductions. By prioritising transparency and compliance, agencies can protect the rights and interests of their temporary workforce.
