What is a Key Information Document and why is it important?
The Key Information Document seems to be the subject of some confusion in the recruitment industry at the moment. We have heard from a few clients and colleagues who have a vague understanding of the new requirement, but many are still in the dark about its objective and purpose. Let’s see if we can clear some things up for you.
What is the Key Information Document?
Essentially, it’s a way of recording and reporting the basic information (pay, holidays, deductions, fees, parties involved, etc) of any potential assignment presented to an eligible worker (post April 6th, 2020). The goal is to provide the worker a snapshot of information enabling them to better judge whether to accept an assignment, or not. It’s important to note that this document is not applicable to workers with existing employment terms (Pre April 6th, 2020).
Why is the Key Information Document important?
The document is designed to provide greater transparency and clarity to the potential worker. It is also an integral part of the Government’s Good Work Plan, which sets out to
standardize and reinforce worker’s rights. As an employer you must comply with the Good Work Plan, therefore the Key Information Document becomes mandatory.
What do employers need to do?
Your responsibility is to ensure that the Key Information Document is completed with
relevant details pertaining to each work assignment that you’re providing. You’ll then
need to share this with the worker and (if they have one) their umbrella company.
What warrants completion of a Key Information Document?
You’ll need to ensure that a Key Information Document is constructed and presented for
the following circumstances:
-The employee is new to your organization post 6th April 2020
-There is a change of umbrella company/intermediary
-There is a change in contractual terms and conditions
-There is a change in payment intervals or frequency
-There are new deductions relevant to the employee
-There is a new contract or job description undertaken
What if we fail to address this?
Well, it could lead to a status of non-compliance, resulting in an Employment Tribunal
and/or penalty. The Employment Agency Standards inspectorate is overseeing the outlay
of the new requirement – our advice is to stay on the right side of them from the outset.
Need more info?
For additional information about the Key Information Document we recommend heading
to the Government’s resource– or, contact us, we’ll be happy to chat with you regarding.