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Self-Employed Statutory Pay Update

26th March 2020

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For businesses it is a concerning time and there are conflicting reports on how to handle the situation.

For self-employed people this time is also an increasing concern on how they will survive if their contracts are terminated. They are awaiting details of what is happening from the Government and there is growing confusion especially amongst construction workers as many of them are self – employed.

The House of Commons Public Bill Committee had proposed an amendment to the Coronavirus bill entitled Statutory Self Employment Pay.

If this bill is accepted through Parliament and put through then it will ensure the Government introduces regulations providing that Freelancers and Self-employed people should receive guaranteed earnings of

1. a) 80% of their monthly net earnings averaged over the last 3 years or;
2. b) £2,917 per month whichever is the lower.

The definition of what is a Freelancer is still undefined. The purpose of this amendment is to ensure that the Government covers self-employed workers earnings to the lower of 80% of their net monthly earnings or £2,917 a month.

This will be good news for the self-employed but it is a complicated scheme to implement which needs a lot of consideration. Keep looking on our website for more updates as to how this scheme will work, if accepted.

This is not legal advice; it is intended to provide information of general interest about current legal issues.

Last updated: 25.03.2020

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