Public sector contractors are covered by furlough scheme

The Cabinet Office has confirmed that the coronavirus job retention scheme applies to off-payroll contractors working for public sector organisations. Describing these individuals as ‘contingent workers’, the guidance states furlough can be offered to those paid under PAYE, working through an umbrella or their own personal services company.

They will qualify for the scheme if they are unable to work but their contracts have not ended. 

The guidance states: ‘This approach applies to all contingent workers, while they are being supplied under their current assignment, no matter how long they have been in post. The only exception to this would be where contingent workers are being let go as a natural end to their assignment (ie contract was due to finish and not be extended regardless of Covid-19).’