No Key Information Document - Your umbrella has a big problem

[eek]

Just discovered on linkedIn that an employment tribunal has finally made a decision on what happens if your agency / umbrella fail to provide a Key Information Document (KID) before you start work...

https://assets.publishing.service.go...nd_reasons.pdf

It's not pleasant reading for Umbrella firms - and they really will need to make sure an accurate Key Information Document is provided alongside the contract...

Edit - it also means that Inside IR35 or Umbrella rates have no meaning in law....

[JustKeepSwimming]

Mr Forrester added that the Claimant has only submitted his claim because he doesn’t like paying so much tax

Rookie mistake. If a decision references you throwing shade then you ****ed up, badly.

Claimant representing themselves seems to have done a bang up job.

[eek]

Rookie mistake. If a decision references you throwing shade then you ****ed up, badly.

Claimant representing themselves seems to have done a bang up job.

It's really not a difficult job - my problem is

1) there is no way I could claim I didn't know what umbrella rate meant
2) I got a KID because Clarity isn't stupid...

So no payout for me...

But this really was a case I've been waiting to see for about 2 years and it settles a lot of points including who takes responsbility if the agency doesn't pass on the KID (for which the answer is Oh boy - if you are an umbrella make sure you include the KID alongside the paperwork).

[cojak]

I do like the report format and content - nice and clear.

[eek]

I do like the report format and content - nice and clear.

Employment Tribunal reports are great - the search engine to find them on the other hand is beyond dire...

[SimonMac]

Can someone ELI5 why this one is different? Or will this judgment impact all Brolly contracts given the ET says the Brolly did give them a KID which outlines what was to be deducted?

[eek]

Can someone ELI5 why this one is different? Or will this judgment impact all Brolly contracts given the ET says the Brolly did give them a KID which outlines what was to be deducted?

It’s not - as here is another case (still in progress for calculations of what is owed) that says the advertised hourly rate is the PAYE rate with holiday pay on top https://assets.publishing.service.go...02352_2022.pdf

worth saying both of them, on actual reading, say that even a KID is probably not enough and the contract may need to be very specific

[JustKeepSwimming]

Can someone ELI5 why this one is different? Or will this judgment impact all Brolly contracts given the ET says the Brolly did give them a KID which outlines what was to be deducted?

The agent made statements that were not clear.

The court accepted that the claimant was confused as to what the arrangement was.

Brolly KID and contract was not enough to dispel the claimant's confusion.

Claimant did not consent to 'umbrella' arrangement, no contract, unlawful deductions. Brolly pay up.


It's pretty clear saying '£700/d inside' is a confusing statement to vast majority of people. Most people would assume that £700 is their daily wage. So unless either the agent or the brolly can show they have explained what 'inside' (replace for whatever terminology they are using that day), then they don't have the workers consent to deduct employer costs.

[cojak]

The agent made statements that were not clear.

The court accepted that the claimant was confused as to what the arrangement was.

Brolly KID and contract was not enough to dispel the claimant's confusion.

Claimant did not consent to 'umbrella' arrangement, no contract, unlawful deductions. Brolly pay up.


It's pretty clear saying '£700/d inside' is a confusing statement to vast majority of people. Most people would assume that £700 is their daily wage. So unless either the agent or the brolly can show they have explained what 'inside' (replace for whatever terminology they are using that day), then they don't have the workers consent to deduct employer costs.

Yep, the umbrella didn’t challenge the fudge the agent made to encourage sign-up. Umbrellas will have to make it absolutely crystal clear before sign-up (via the KID) that the contractor will only be getting 52% or whatever of that ‘£700pd’ rate.

[eek]

Yep, the umbrella didn’t challenge the fudge the agent made to encourage sign-up. Umbrellas will have to make it absolutely crystal clear before sign-up (via the KID) that the contractor will only be getting 52% or whatever of that ‘£700pd’ rate.

Good luck with that - Agencies are going to have to move to advertising PAYE rates in a hurry...