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What does the guidance suggest?

The guidance asks parties to act responsibly and fairly in performing and enforcing contracts. They are encouraged to act in a spirit of cooperation to achieve practical, just and equitable outcomes. In essence, rather than sticking strictly to the contract as agreed, they are encouraged to give each other leeway to deliver performance differently than they are required to do under the contract.

Related FAQs

What if the status determination is disputed?

You should have in place a dispute resolution procedure that sets out the appeal process or contractors or the agency as appropriate. You must respond to an appeal within 45 days.

If the status determination is disputed you should consider the contractor or agency’s reasons objections. You must consider if the original determination is to be maintained and give reasons for this. Or a new determination with reasons can be provided if appropriate.

Records of disputed determinations and the outcome of any appeal should be kept.

Are Public Bodies able to continue to pay contractors (and their supply chains) at risk as a result of Covid-19?

Yes: The Cabinet Office has published a number of Procurement Policy Notes to provide instructions to Public Bodies to enable payments to continue to be made to at risk suppliers (and their supply chains) who have been affected by Covid-19. Copies of this guidance can be obtained from the Government website at: https://www.gov.uk/government/publications/procurement-policy-note-0220-supplier-relief-due-to-covid-19

How do I determine contractor status?

You must exercise reasonable care in assessing status and making a status determination, considering what the position would be if the contractor was engaged directly by the end user client instead of via a PSC.

Status is usually determined by looking a number of factors and how they apply to the contractor’s working arrangements. This is a difficult exercise that is usually carried out by employment and tax lawyers and it is full of grey areas. We have a toolkit that can help you navigate this process which Paul will tell you more about at the end of the session.

The key factors used to determine status  are:

  • Control:
    • How much control does the end user client have over the contractor in terms of working arrangements (hours, place of work) and how the work is carried out? Or is the individual contractor able to determine how and when they work and without direct supervision of the end user client?
  • Personal service:
    • Is the contractor required to perform the services personally without the right to send a substitute? If there is a right to appoint a substitute is this subject to end user client approval?
  • Mutuality of obligation:
    • Is the end user client obliged to provide the contractor work with a mutual obligation on the contractor to accept that work?
What does the new Chief Coroner guidance cover?

This guidance from the Chief Coroner applies to reports of death and coroner investigations in England and Wales. It is to assist coroners in continuing to exercise their judicial decisions independently, in accordance with the law, and during the extraordinarily pressured events being faced at present.

What happens if an employee refuses to attend work because they are afraid of being exposed to COVID-19 particularly the new more transmissible strain?

An employee can refuse to attend work but their refusal to do so will have to be based on a reasonable belief that their health and safety is in danger.  Whether or not their refusal is reasonable will take into consideration factors such as the employee’s own health and whether they are at a higher risk of becoming seriously ill if they contract Covid-19 and the steps their employer has out in place to mitigate the danger of contracting Covid-19 at work.

In such circumstances where the employee’s belief is deemed to be reasonable, they will be entitled to stay at home and receive full pay.

If an employee is subsequently dismissed for refusing to attend work in these circumstances, they may be able to bring a claim for unfair dismissal.