Please note: The information below is correct as of 09:00 on 24/03/2020 but with the developing COVID-19 situation, and Government guidance, this is subject to change so we would always advise speaking with a solicitor for specific advice.
Further to the Government’s recent announcement of the introduction of the Coronavirus Job Retention scheme which grants to cover 80% of the salary of PAYE employees who would otherwise have been laid off during the Coronavirus crisis, the Government is now setting out proposals for the self-employed and freelancers.
The House of Commons Public Bill Committee has proposed an amendment to the Coronavirus Bill, entitled Statutory Self-Employment Pay.
If accepted which is likely, it compels the Government to introduce Regulations providing that “freelancers” and “self-employed people” should receive guaranteed earnings of:
(a) 80% of their monthly net earnings, averaged over the last three years; or,
(b) £2,917 per month
whichever is the lower.
The purpose of this amendment is to make the Government ‘top up’ self-employed workers’ earnings to the lower of 80% of their net monthly earnings or £2,917 a month in line with the assistance offered to PAYE employees.
As always, we are monitoring the Government guidance as it is announced and will be on hand to advise on individual circumstances where required. You can get in touch with our employment team on 0845 287 0939 or send your enquiry through our online contact form.