Job Retention Scheme – Mane PAYE contractors

The Government has now published further guidance on its Coronavirus Job Retention Scheme. This guidance suggests that agency workers who were on PAYE payroll prior to 28 February 2020 will be eligible for the scheme, which pays 80% of average monthly earnings up to a maximum amount of £2,500 (less PAYE tax and National Insurance).

Subject to being furloughed by the client, Mane may be able to claim for government assistance under this scheme. However, the guidance does not yet make it clear whether the scheme only covers agency workers who are engaged by the agency on an ‘employed model’, whereby contractors are employees of the agency and are engaged on a single contract, which continues between assignments, or whether this will also cover agency workers who are engaged on a non-employed, assignment-specific basis, which is the arrangement Mane operates for its PAYE contractors. We are urgently seeking more information about the scheme and the eligibility criteria.

We currently understand that the scheme is likely to be up-and-running by the end of April and we therefore hope to receive further clarification about the scheme in the coming days. We will publish further information as soon as possible.