This is a crucial document that you will receive from an employment business when seeking temporary work. This document outlines important details about your relationship with the employment business and any third parties involved, including who will pay you, how much you can expect to be paid, and how often.

As of 6 April 2020, employment businesses are required by law to provide a KID to all new temporary workers who register with them. The KID is essential in helping you understand the specifics of your intended arrangements with the employment business and any intermediaries involved, such as umbrella companies.

It provides information on your pay, deductions, holiday entitlement, and any additional benefits. The KID should be no more than 2 sides of A4 when printed, and the information should be presented clearly and concisely.

The KID when an umbrella company or intermediary is involved

It is important for a KID to cover certain aspects. The KID should provide essential information regarding your relationship with the employment business as well as the umbrella company or any intermediary involved in your engagement.

One crucial aspect that the KID should address is the fact that the umbrella company will receive a higher payment than you. This higher payment is often called an ‘assignment’ or ‘contract’ rate. The umbrella company will then utilize this income to cover its employment costs and retain a portion for its services. Subsequently, it will make a payment to you. The KID must clearly outline the key information about pay and deductions for both you and the umbrella company or intermediary involved in your engagement. This ensures transparency and provides a comprehensive understanding of the financial aspects involved in the arrangement.

If your engagement involves an intermediary or umbrella company, the KID must contain the following information:

1. The name of the intermediary or umbrella company, your employer’s name.

2. The type of contract you will be engaged under, who will be responsible for paying you (if not your employer).

3. The payment frequency of the intermediary or umbrella company.

4. Any business connection between the intermediary or umbrella company.

5. The employment business and the person responsible for paying you.

6. The expected or minimum assignment rate the employment business will pay the intermediary or umbrella company.

7. Deductions from the intermediary or umbrella company’s assignment rate required by law.

8. Any other deductions from the intermediary or umbrella company’s assignment rate, including amounts or how they are calculated.

9. The expected or minimum rate of pay to you.

10. Details of deductions from your pay required by law.

11. Details of any other costs or deductions from your pay, including amounts or how they are calculated.

12. Details of any fees for any goods or services that the employment business or any other person would charge you for.

13. Holiday entitlement and pay, additional benefits, and the agreement between you and the umbrella company.

14. If one exists, opt out of the Conduct of Employment Agencies and Employment Businesses Regulations 2003. For more information, please refer to the guidance on the Conduct Regulations for recruitment agencies.

How to request a copy of your KID

To request a copy, please email Sales@smartwork.com, or alternatively, a KID document can be downloaded from the SmartWork website. For further information about the Key Information Document, please click here.

If you have any further inquiries, please feel free to contact us.