The government introduced regulations in April 2020 requiring new agency workers to receive a ‘Key Information Document’ (KID) containing crucial details before agreeing to terms with an employment business or agency. These regulations did not apply to workers with existing terms but ensured that a KID was provided when they registered with a new employment business.

The Key Information Document was intended to enhance transparency around pay, offering a clear overview of how fees and deductions would impact the worker’s earnings throughout a labour supply chain. By receiving a KID, agency workers were better equipped to make informed decisions about assignments, understanding how their take-home pay could be affected by various deductions.

Information a Key Information Document must provide

The government has published detailed guidance which states the information which must be included in the KID. This covers basic items such as the name of the employment business (or agency), rates of pay, who will pay the worker, and the level of fees and deductions a worker can expect.

The government has published various templates that agencies, umbrella companies and Personal Service Companies can use to provide the necessary information to individual workers.

An employment business can provide any additional information the worker may find to be useful, such as the period of notice to be worked.

Umbrella companies and other intermediaries

Where there is an intermediary or umbrella company involved in the labour supply chain, the KID must still be produced by the employment business and provided to both to the umbrella company and the individual agency worker. This is to ensure that workers are aware of the deductions made throughout the labour supply chain.

The worker should be able to see the difference between the gross amount paid by the employment business to the intermediary or umbrella company and the net sum the worker receives.

Enforcement

The Employment Agency Standards (EAS) inspectorate is responsible for the rights of Agency workers and will enforce the new requirement. EAS can be contacted at eas@beis.gov.uk.