What is a Key Information Document?

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 information?

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.

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ERA AND UMBRELLA COMPANIES

Currently we know that there is talk of regulating umbrella companies and we understand why. The need to demonstrate compliance on a more frequent basis has affected many agencies and requesting additional certification from umbrella companies is now commonplace.

There are various companies who offer assessments and certifications and this gives agencies peace of mind that their contractors are being looked after and things are done correctly. Not all of these are affordable or accessible for smaller umbrella companies, but ERA Services has a fair and affordable pricing structure, and as long as you have 1 employee, you can opt for an ERA assessment.

ERA conducts a thorough, impartial assessment of all aspects of employment rights from minimum wage, holiday pay, modern slavery, and confirmation that all taxes are paid appropriately and on time for both your internal and umbrella workers, along with the additional responsibilities for your umbrella workers in line with AWR, the EAA Conduct Regulations and Key Information Documents.  The ERA audit is not just a case of ticking boxes and providing documents; in line with UKAS procedures, we look at the processes in place to ensure that a company is following them to be the best employer that they can be.

Holding an ERA certificate should reassure your agencies that you uphold the standards set for all employers in the UK and that your contractors are well taken care of.

ERA AND RECRUITMENT AGENCIES

We do recognise that in the temporary workforce sector that there has been much unrest over the last few years caused mainly by constant changes to taxation and employment law legislation and appreciate that recruitment agencies are under more and more pressure from end clients to evidence their compliance, and this includes their relationships with umbrella companies. The ERA assessment is tailored with additional questions that deal with your responsibilities as an employer of your internal staff, along with additional responsibilities for your temporary workers such as AWR day one and week 12 rights, EAA Conduct Regulations and the Key Information Document.

The ERA audit is not just a case of ticking boxes and providing documents; in line with UKAS procedures, we look at the processes in place to ensure that a company is following them to be the best employer that they can be.

Holding an ERA certificate should reassure your end clients that you uphold the standards set for all employers in the UK and that your contractors are well taken care of.

ERA AND EMPLOYERS

ERA conducts a thorough, impartial assessment of all aspects of employment rights from minimum wage, holiday pay, modern slavery, and confirmation that all taxes are paid appropriately and on time. The ERA audit is not just a case of ticking boxes and providing documents; in line with UKAS procedures, we look at the processes in place to ensure that a company is following them to be the best employer that they can be.