Employ Agency Workers or Freelancers? Key Information Document – what you need to know ahead of 6th April 2020
Earlier this year the government released the Good Work Plan, a document detailing the key changes required throughout all industries to improve and protect workers on short-term contracts or a freelance arrangement. One key item in the plan was improving the ways in which workers understand their employment status, especially agency workers and those employed on a temporary basis. The plan has proposed that, come April 2020, all agency workers must now be issued, at the start of their contract, with a Key Information Document. Further information on what this document should include has now been released by the government. Here at Bishopsgate we have summarised the information from this document, with all you need to know below.
When do I need to start issuing Key Information Documents?
6th April 2020 is when all agency workers must be issued with a Key Information Document before agreeing employment terms.
Why do I need to issue a Key Information Document?
The government want to improve the transparency around temporary, agency and freelance work; the aim of the scheme is to ensure all workers, regardless of employment status, are aware of key information in relation to their engagement.
How should I present a Key Information Document?
The government guidance states that the document should:
- Be clearly labelled and include a brief explanation of its purpose
- Include contact details of the Employment Standards Agency and ACAS (but this is optional)
- Be straightforward and easy to understand
- Not exceed two sides of A4 in length
When do workers need to receive the document?
From 6th April 2020 all workers must receive this document before agreeing contractual terms. This document does not form part of a worker’s contract, but simply states key information in relation to their employment.
If an intermediary or umbrella company are involved the Key Information Document must be issued to both the organisation (intermediary or umbrella company) and the individual worker.
How often must I issue a Key Information Document?
It is not necessary for organisations to re-issue Key Information Documents every time an agency worker begins a new assignment, providing there are no changes. However, if something has changed a new key Information Document must be issued.
What do I do about existing agency workers?
The government guidance states “Agency workers who are already signed up to an employment business, and have agreed terms with that employment business, will not need to receive a key facts page from that employment business after 6 April 2020. The regulation only applies to agency workers who sign up to an employment business after 6 April 2020.”
Whose responsibility is it to issue the Key Information Document?
In all cases the responsibility of the Key Information Document sits with the employment business.
What information needs to be included?
The government guidance has detailed the information that must be included within the document. For more detailed information on the below please visit the guidance document.
- Name of worker
- Contract type
- Employment business
- Name of intermediary of umbrella company (if applicable)
- Who will employ the worker (only applicable if using and intermediary or umbrella company)
- Who will pay the worker
- Any connection between the employment business and intermediary/umbrella company (if applicable)
- Rate of pay for worker
- Rate of pay to intermediary or umbrella company (if applicable)
- Pay intervals
- Statutory deductions to worker
- Statutory deductions from intermediary or umbrella company income (if applicable)
- Non-statutory deductions
- Non-statutory deductions from intermediary or umbrella company income (if applicable)
- Any fees for goods or services
- Other benefits
- Holiday entitlement
If you want to know more about the Good Work Plan or how to successfully implement a Key Information Document, please contact Bishopsgate.
Luke Shannon-Little - Managing Director