Umbrella Company Contractor Eligability

daKlone

I worked for an end-customer who has shut down but am paid as a contractor through an umbrella company. They pay my PAYE and NI etc.
Should I be eligable for furlough payments?
I spoke to my umbrella company but they said they were waiting to hear back from HMRC as to what the situation is. But looking at the guidance notes, it seems to me pretty clear that I am covered and all they have to do is issue me with a furlough notice.
Does anyone know for sure?

HECole

I am in the same position and I emailed my umbrella company today. They clarified I was an employee of theirs, which is good. And that he Chancellor’s announcement regarding 80% wages for furloughed workers, there is a lack of detailed information so far and their team are currently reviewing the guidance available and awaiting further clarification on the government proposals and discussing with clients on their application. 

When I read all the info, I felt it was pretty clear that I would fall under the furlough payments too!

Jeremy535897

I think this is reasonably clear:
https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme#employees-you-can-claim-for
https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

daKlone

As I said, seemed clear to me...I guess I'm just worried that a) I haven't got a furlough letter, and b) I'm reliant on the umbrella company making an application for me.
I'm naturally suspicious, so I'm wondering if there might be a reason they don't want to apply...

Jeremy535897

A lot of employers are concerned they have to pay employees now but won't get reimbursed until late April.

daKlone

Yes,I think they're worried about cashflow and waiting for clarification of who they can (and more importantly to them, cannot) pay.
https://www.fcsa.org.uk/will-the-coronavirus-job-retention-scheme-apply-to-umbrellas/

daKlone

I have a little further information.
Apparently, since I'm classed as a 'temporary worker' and the umbrella company have no obligation to pay me while not 'on assignment', they are waiting for the FCSA to find out if they have to pay.
I'm guessing there are subtle, legal differences between the zero hours/contract worker and a temporary worker. My guess would be...no money for me 

Jeremy535897

Best to assume thatthere will be nothing, and plan for that (mortgage holiday, universal credit etc).

ZenYou

I am with an Umbrella company and my contract was terminated on Friday by the company due to Covid19.  Can the Umbrella company refuse to furlough me?

daKlone

The latest I have is that the FCSA are advising their members that they will pay umbrella employees under the CJRS.

https://www.fcsa.org.uk/fcsa-statement-on-the-coronavirus-job-retention-scheme/

Obviously it is up to individual companies to do the right thing (or not), but if they are FCSA members then they should.

However, if like me you get paid National Minimum Wage (NMW) plus a bonus to make up your normal hourly rate, the current situation is that you will only get 80% NMW 

The FCSA are trying to go the Treasury to look at this again, as obviously although it is called a 'bonus' it is actually my normal hourly rate.

https://www.fcsa.org.uk/job-retention-scheme-will-furloughed-umbrella-employees-pay-be-calculated-fairly/

Please contact your local MP, the Treasury and Rishi Sunak if you are going to loose out, so that we can make them look at the situation again.

unforeseen

However, if like me you get paid National Minimum Wage (NMW) plus a bonus to make up your normal hourly rate, the current situation is that you will only get 80% NMW  

Congratulations. You are getting screwed over the same way as one man Ltd cos using pay and dividends. 

The umbrella scheme is no different in its effect. Suck it up like we have to.