No agency KID Document provided!

[contractorlifer]

Hi,

I worked for a company earlier in the year where no KID was provided showing downstream deductions. After realising a month or so into the contract that they were making illegal deductions, I reported them to EAS and they were found to be in breach of legislation. Do I have a case for recovery of loss of earnings for the duration of the contract due to their not adhering to the legislation?

[WTFH]

Hi,

I worked for a company earlier in the year where no KID was provided showing downstream deductions. After realising a month or so into the contract that they were making illegal deductions, I reported them to EAS and they were found to be in breach of legislation. Do I have a case for recovery of loss of earnings for the duration of the contract due to their not adhering to the legislation?

What deductions were illegal?
Did you receive pay slips from them?

When you say you worked for a company, can you explain the flow between the end client and you

[contractorlifer]

I was provided with a document from the agency which I signed, indicating I would be earning X amount per day for the duration of the project. This wasn’t a KID document, I wasn’t even aware of KID documents and the legislation as I had been LTD for the last 15+ years.

Upon receiving my payslips after a month or so I realised they were deducting the 15% Employers NI and Apprenticeship Levy from my gross rate.

The Flow was: Client > Agency > Umbrella Co > Contractor

[WTFH]

I was provided with a document from the agency which I signed, indicating I would be earning X amount per day for the duration of the project. This wasn’t a KID document, I wasn’t even aware of KID documents and the legislation as I had been LTD for the last 15+ years.

Upon receiving my payslips after a month or so I realised they were deducting the 15% Employers NI and Apprenticeship Levy from my gross rate.

The Flow was: Client > Agency > Umbrella Co > Contractor

Who did you report to the EAS?

I would expect an umbrella to deduct NI and AL, along with relevant taxes, as they would be paying you a net salary into your personal bank account.

[contractorlifer]

I reported the agency, who didn’t provide me with a KID.

No disrespect but I’ve looked at the legislation in great detail and there has been a documented breach by EAS.

I just want to understand if there is a case for recovery of loss of earnings due to my not having been provided with a KID document and therefore not able to make an informed decision about agreeing to the agency contract.

[SueEllen]

So you were working and had no information no what you should have been earning per day? And didn't know the number of hours per a day you should be working?

[eek]

So you were working and had no information no what you should have been earning per day? And didn't know the number of hours per a day you should be working?

No, I suspect the OP knew the assignment rate for the job and the hours per day but didn't receive the explanation of what it meant.

For reference I've just received a contract that says £x00 a day for a 35 hour week - I also should have received a KID at this moment to explain what is happening (i.e. the deductions an umbrella firm will make) but I haven't.

Now I know exactly what I was signing up to but it's not my job to tell the agency what it needs to do. They can discover that the painful way when I finish this contract if they don't do things correctly...

[WTFH]

I reported the agency, who didn’t provide me with a KID.

No disrespect but I’ve looked at the legislation in great detail and there has been a documented breach by EAS.

I just want to understand if there is a case for recovery of loss of earnings due to my not having been provided with a KID document and therefore not able to make an informed decision about agreeing to the agency contract.

No disrespect, but your answers are confusing.
You've looked at the legislation, but not gone after the umbrella?

How much of the rate the agency agreed with you was passed on to the umbrella company? (not what went into your personal bank account, but what went to the umbrella)

Who took the NI & AL out of the amount?

If the agent passed 100% of the agreed rate to the umbrella, then what loss of earnings is the agent responsible for?

[eek]

No disrespect, but your answers are confusing.
You've looked at the legislation, but not gone after the umbrella?

How much of the rate the agency agreed with you was passed on to the umbrella company? (not what went into your personal bank account, but what went to the umbrella)

Who took the NI & AL out of the amount?

If the agent passed 100% of the agreed rate to the umbrella, then what loss of earnings is the agent responsible for?

Without any explanation of what the rate means it's possible to argue that the advertised rate was the PAYE rate and that the agency (not the umbrella) is responsible for Employer NI payments.

The whole point of a KID is to explain what happens to the £x00 in the paperwork - without that explanation, it requires a lot of acquired knowledge to know what is actually going to happen.

How it would play it at an employment tribunal is an interesting question that I think a lot of people would love to see the end result of (is the agency at all responsible, can it be passed to the umbrella??? are questions we don't know the answer to). And unless the end result is a sane response it would render KIDs irrelevant..

[WTFH]

Without any explanation of what the rate means it's possible to argue that the advertised rate was the PAYE rate and that the agency (not the umbrella) is responsible for Employer NI payments.

The whole point of a KID is to explain what happens to the £x00 in the paperwork - without that explanation, it requires a lot of acquired knowledge to know what is actually going to happen.

How it would play it at an employment tribunal is an interesting question that I think a lot of people would love to see the end result of (is the agency at all responsible, can it be passed to the umbrella??? are questions we don't know the answer to). And unless the end result is a sane response it would render KIDs irrelevant..

I can understand that as a point of view, but if the agent says "this is the gross rate", then not sure what else they can say.
They are paying out an amount. For some contracts that could be going to an umbrella, for others it could be to an Ltd. I don't know how the agent can say what your take home will be, so they can only quote the gross.
This is why I'm asking the questions.
If he agreed a gross rate with the agent, and the agent is passing on that gross rate to the umbrella, then in my mind, he should be talking to the umbrella.
If the agent didn't say it was a gross rate, or is taking NI/AL/etc out of it before passing it on, then to me there's a case.