Carillion prison and army contracts saved as job losses near 1000

Carillion workers

Carillion workers

A further 4,418 employees, working in prison facilities management and cleaning and catering for defence bases, will keep their jobs after a deal was secured to transfer the contracts to other providers.

More than 4,400 staff who worked for collapsed government contractor Carillion will keep their jobs, the Insolvency Service has said, after new companies were found to provide prison maintenance and services for military bases.

A further 59 employees working on construction projects that have been paused, will leave the business later this week, the Official Receiver announced.

The Official Receiver's spokesperson added: "Ongoing employment has been confirmed for more than a third of Carillion's workforce so far as part of the liquidation. Those who have lost their jobs will be able to find support through Jobcentre Plus' Rapid Response Service and are also entitled to make a claim for statutory redundancy payments".

The latest update takes the total number of Carillion jobs that have been saved since the company's failure last month to 6,668, more than a third of its 19,500-strong workforce. The prisons services took over Carillion's work nearly straight after the collapse was confirmed last month.

Carillion employed around 19,500 in the United Kingdom meaning thousands more still await to hear their fate as construction projects around the country remain in limbo.

The facilities management contracts which had been run by Carillion in prisons, and agreements to clean barracks and serve food to the armed forces will continue.

"Most employees who have transferred so far have done so on existing or similar terms and I will continue to facilitate this wherever possible as we work to find new providers for Carillion's other contracts", a spokesperson for the Receiver said.