Stuck in the middle of Furlough

[HoraceGB]

Morning.
I am wondering if anyone else is in the same predicament as me. I am a contractor using an umbrella company. The local authority I am working with has suspended all recruitment and contracts until further notice from the 31st March. The umbrella company has said that HMRC has said Local Authorities are to pay furlough and the local authority has said HMRC has told them they cant, where does that leave me?

[BlasterBates]

Your employer is the umbrella co. You need to check with them, if they don't furlough then presumably they cancel the contract and you register unemployed. I don't see there is anything you can personally do, it is a choice for the employer to make whether to furlough you or lay you off.

[ladymuck]

Th guidance is pretty rubbish for umbrella workers

Check if your employer can use the Coronavirus Job Retention Scheme - GOV.UK

The part salient to you is:

If you’re an agency worker (including if you are employed by an umbrella company)

Where agency workers are paid through PAYE, they are eligible to be furloughed and receive support through this scheme, including where they are employed by umbrella companies.

Furlough should be agreed between the agency, as the deemed employer, and the worker. As with employees, agency workers should perform no work for, through, or on behalf of the agency that has furloughed them while they are furloughed, including performing such work through or on behalf of the agency for the agency’s clients.

Where an agency supplies clients with workers who are employed by an umbrella company that operates the PAYE, it will be for the umbrella company and the worker to agree whether to furlough the worker or not.

The claiming company has to confirm, as a condition of claiming CJRS, that the whole claim will be paid by them to the worker. Obviously this means an umbrella cannot deduct their fee from the payment. I think this (and other considerations) is why many are not using the furlough scheme.

[BlasterBates]

Where an agency supplies clients with workers who are employed by an umbrella company that operates the PAYE, it will be for the umbrella company and the worker to agree whether to furlough the worker or not.

Well to me it's pretty clear, the Umbrella company needs to furlough the worker, which is what you would expect as they are the employer. The agency and client are not involved. The umbrella co. needs to put in the claim. There should be no problem in the claim being accepted, but infortunately the Umbrella company has to agree to do this.

[ladymuck]

Well to me it's pretty clear, the Umbrella company needs to furlough the worker, which is what you would expect as they are the employer. The agency and client are not involved. The umbrella co. needs to put in the claim. There should be no problem in the claim being accepted, but infortunately the Umbrella company has to agree to do this.

Except for the part where they have to pay over everything to the employee - they can't make any deductions...

It's Q2 of the claim process:

[Newstart]

Action for change

Except for the part where they have to pay over everything to the employee - they can't make any deductions...

It's Q2 of the claim process:

I am “stuck” in this position. We have to break the impass. Write to your MP, the Chancellor, CEOs of the UC and go-between with former client, and if client was a Government Department write to the Minister. Ask the simple question “Is the current position in line with the Government’s policy or intention for employees under IR35?

Make THEM act!

[Eatapeach]

I am “stuck” in this position. We have to break the impass. Write to your MP, the Chancellor, CEOs of the UC and go-between with former client, and if client was a Government Department write to the Minister. Ask the simple question “Is the current position in line with the Government’s policy or intention for employees under IR35?

Make THEM act!

I'm in exactly this position. Truly a "no rights employee".
Working for an educational body who adopted the blanket inside IR35 approach. Contract ends May 1st
In April they started the process to extend me for 4 months, then decided to not renew any contracts.
The umbrella is sitting on the fence "until they receive further guidance" which means they won't furlough people until they can charge a fee. Ring 03300 580 190 option 1.

And I am guessing that when the small firm loan scheme kicks in on May 4th that because the PSC has been dormant for 12 months due to IR35, that the PSC won't be eligible for a loan.

FML.