Key Information Documents: Best Practices for Compliance

Key Information Documents (KIDs) are a legal requirement under the Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2019. They must be provided to workers before they agree to terms with an umbrella company.

What a KID Must Contain

• The type of contract (employment or self-employment)
• The minimum rate of pay the worker will receive
• An example pay illustration showing all deductions
• Any fees or costs that will be deducted
• Holiday pay entitlement and how it is paid
• Details of any benefits provided

Common Mistakes to Avoid

1. Outdated rates: Using old NMW/NLW rates in pay illustrations
2. Missing deductions: Failing to list all deductions including margin, employer NI, and pension contributions
3. Generic documents: Not tailoring KIDs to specific assignment rates
4. No audit trail: Failing to record when KIDs were issued and acknowledged

How PaySentry Helps

PaySentry’s KID Generator creates fully compliant documents automatically, populated with accurate worker data and current tax rates. Every KID is versioned and tracked for complete audit trail compliance.