April 2023 will see the National Living Wage and National Minimum Wage increasing, so if you are supplying workers and have issued a Key Information Document, you should be asking whether the pay rate referred to in it remains correct.
A Key Information Document (KID) is all about transparency, making sure that agency workers are aware as to who will be engaging and paying them, clarifying the payment arrangements and the likely take home pay. Where a KID specifies pay as a figurative amount equivalent to the relevant minimum wage, it will no longer be accurate after the April increase. This means that the new rate should be specified in a new KID and this should be sent to existing workers within 5 days of the change, and the new rate should be shown in all new KIDs that are issued.
However, if the KID stated that the minimum rate of pay would be in accordance with the relevant minimum wage without specifying a figurative amount, there is no need to make any change. It is always worth checking which minimum rate applies, which is dependent on the age of the worker, meaning that rates should increase where the worker’s age increases to the current National Living Wage level, which applies from 23 years old.
The requirement to issue a KID is contained in the Agency Conduct Regulations. According to the Employment Agency Inspectorate, failure to issue a KID or a correct KID is one of the most common breaches of regulation, so keeping them up to date is vital.
Find out more about KIDs and compliance with the Agency Conduct Regulations by attending our webinar on these regulations in which we will be identifying areas where agencies commonly get things wrong, e.g. risk to fees, and the potential consequences and the simple steps to take to meet the requirements. Book your place now.
If you are unable to make this session recordings will also be available, contact us for more information.
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Theresa Mimnagh, Director LLB qualified as a solicitor* in February 2004 and previously worked in private practice as an employment lawyer. She joined Lawspeed in 2005 and leads Lawspeed’s client support and audit team.
Her specialisations are in employment law, recruitment law, employment status, IR35 and agency tax, data protection (GDPR), and employment contracts and policies. She leads our team of IR35 lawyers and is responsible for updating our contracts under our contract maintenance scheme. She also heads the employment law team and excels in supporting clients in employment related disputes.
Theresa also is our lead in training on key areas relevant to employment business, including IR35 and recruitment process, and was responsible for delivery of our 2019 programme of IR35 masterclasses and 2023 webinar series.