Contractors working on assignments in government departments are to receive support in the event that they are unable to work during the Covid-19 pandemic. Public sector contingent workers will be able to claim 80% of their pay rate up to a maximum of £2,500 per month in the event of temporary office closures, sickness or self-isolation.
The support aims to curtail the number of contingent staff leaving the public sector by ensuring continuity of payment if they are unable to work. It therefore safeguards vital public sector services such as healthcare, education and transport against future staff shortages.
An official guidance document defines ‘contingent workers’ as contractors, umbrella and agency PAYE workers. Individuals working part-time are included, and some provision is also made for those with childcare responsibilities. For contractors who work ad-hoc hours, the end-client will determine the average days or hours worked over a maximum 12-week period before applying the 80% calculation.
Unlike the Coronavirus Job Retention Scheme for employees, the support package is based on pay rate rather than PAYE earnings. The monthly payment can be backdated up to 1st March and is initially available for at least three months. If the contractor is already in receipt of Statutory Sick Pay, then then the claim will be deducted in order to bring the total payment to 80% of the gross pay, up to the maximum of £2,500 per month.
The support will apply to all "all government departments, their executive agencies and non-departmental public bodies", providing the worker is ‘in contract’. The public organisation isn’t obliged to provide continued support on contracts that will end naturally during this period. While other public sector organisations have been encouraged to roll out this scheme to their contingent workers, they are not obligated to do so. At this time, the support is not applicable to contractors working in the private sector.
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