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Key Information Document and Statement of Terms For Employees and Workers

Posted: November 15, 2019

Requirement to Supply a ‘Key Information Document’ to Agency Work Seekers, from April 2020

From 6 April 2020, temporary work agencies must provide agency work seekers with a Key Information Document, before agreeing terms with an employment business.  The document must be straightforward to understand, easy to read and not exceed two sides of A4 in length.  It is intended to provide agency work seekers with a number of pay related facts, along with engagement information.  In practice, this will mean that the Key Information Document will be one of the first things they receive.

This does not apply to agency workers with existing terms with an employment business, but they would be entitled to a Key Information Document should they sign up with a new employment business.

 

Written Statement of Terms, Required to be Issued On Or Before the First Day of Employment

The requirement to provide workers and employees with a written statement of terms of employment changes from 6 April 2020.  Previously, the requirement to provide a written statement of terms applied only to Employees, and was required within the first 8 weeks of employment.

As from 6 April 2020, the requirement is extended to workers and employees, and is required on or before the first day of employment.  This applies to all new joiners from 6 April 2020 onwards.

 

The Difference Between an Employee and a Worker

An employee is an individual employed under a contract of employment. To have employee status, three principle tests that must be met are as follows:

  • * personal service – the individual must be required to provide their services personally, rather than being able to send a substitute;
  • * mutuality of obligation – the employer must be obliged to provide the individual with work and the individual must be obliged to do that work in return for an agreed salary or wage, and
  • * control – the employer must exercise a sufficient degree of control over the manner in which the individual carries out the work.

A worker who is not an employee works under a contract whereby the individual “undertakes to do or perform personally any work or services for another party to the contract whose status is not … that of a client or customer” (s.230(3) of the Employment Rights Act 1996).

It follows that workers are not employees if they are free, without penalty, to accept or reject any offer of work made to them.

Where none of the three tests are met, the individual is likely to be self-employed, rather than a worker or employee.

 

Please contact Rachel Pottle at hr@burgesshodgson.co.uk for more information or if you have any questions.