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What is the current guidance relating to Private Finance Initiatives and PF2 Projects in light of coronavirus?

On 2 April 2020, the Government issued guidance relating to Private Finance Initiatives and PF2 Projects. The guidance, which is to be enforced with immediate effect (currently due to stay in place until 30 June 2020), is one of several guidance notes issued to date.

A link to the guidance is set out below:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/877804/2020_04_01_PFI_and_COVID19_final.docx.pdf

Key messages to contracting authorities

  • PFI contractors should very much consider themselves as being part of the public sector response to the current pandemic
  • Covid-19 is not regarded as, and is not to be classified as a force majeure event
  • PFI contractors must ensure that contingency plans are up to date and have been reviewed and discussed with contracting authorities to enable the continuity of full services to respond to the pandemic and maintain vital public services
  • Contracting authorities should work closely with PFI contractors to use all available options to maintain public services during the emergency period
  • Local arrangements should be made where PFI contractors can’t deliver the agreed requirements and performance standards
  • “Best efforts” should be made by all parties for the continuation of service provision

Related FAQs

What should be included in genuinely self-employed contractor terms?

If you consider the factors used to determine status you can include the following terms that are more in line with a self-employed relationship:

  • The right to provide a substitute of the contractor’s choice in the event the individual is not able to perform the services;
  • The ability to work for other businesses as long as doing so will not affect the services to be provided by the contractor;
  • The contractor should have sufficient control over how, when and where (if possible) they provide the services;
  • A degree of financial risk can be included for unsatisfactory work or failing to complete a project or task

We have terms that cover all of these points that can be tailored to your needs. The consultancy agreement is included in our IR35 toolkit.

Can I use my Public and Employer's Liability insurance to protect my business from a claim?

Business operators such as travel operators, hotels and restaurants remain vulnerable to claims of failure to protect against contracting the virus. There is a high chance of claims from employees, clients and members of the public. These are likely to be covered under public liability and employer’s liability insurance.

How is the Pensions Regulator reacting to the crisis?
  • The Pensions Regulator has published regularly-updated guidance for employers.
  • It will take “a proportionate and risk-based approach towards enforcement decisions … with the aim of supporting both employers and savers”. In other words, the law remains the same, but the Regulator will show restraint in enforcement against breaches.
VIDEO: SRA Standards and Regulations

Damien Charlton, Julie Huntingdon and Chris Hugill look at the SRA Standards and Regulations (STaRS) for solicitors which came into effect late 2019, and represented a whole new regulatory landscape for the legal profession. The enhanced reporting and transparency obligations have an important impact on in-house practice, so this webinar gives you the opportunity to reflect on how the new rules impact on in-house lawyers, in both your professional and personal lives.

This webinar is part of a series designed for in-house lawyers. If you would like to register to receive invitations to future events for in-house legal counsel, please email damien.charlton@wardhadaway.com.

Can an employee still do volunteer work when on Flexible Furlough?

An employee on Flexible Furlough can take part in volunteer work during hours which you record your employee as being on Flexible Furlough as long as it is for another employer or organisation.

To be clear, if on Flexible Furlough and you’re claiming the grant for them, then they cannot work for you.

As people work part-time and ease back into the business, this is likely going to be a key risk area. You need very clear lines as to working time and non-working time. No replying to emails on days off.