Social Security Act 1985

Section 21.

SCHEDULE 4 Miscellaneous Amendments Relating to Statutory Sick Pay

Attachment of Earnings Act 1971 (c.32)

1 In section 24(1) of the Attachment of Earnings Act 1971 (meaning of "earnings "), the following paragraph shall be inserted after paragraph (b)—

“(c) by way of statutory sick pay.”.

Social Security Act 1975 (c.14)

2 In subsection (8) of section 22 of the Social Security Act 1975 (maternity allowances), after the word "above" there shall be inserted the words " and Schedule 3, Part I, paragraph 3".

3 In section 36 of that Act (severe disablement allowance), the following subsection shall be inserted after subsection (4)—

“(4A) A person shall not be entitled to a severe disablement allowance for any day which as between him and his employer falls within a period of entitlement for the purposes of statutory sick pay.”.

Social Security and Housing Benefits Act 1982 (c.24)

4 The following subsections shall be inserted after subsection (6) of section 3 of the Social Security and Housing Benefits Act 1982 (periods of entitlement)—

“(6A) In a case where the employee's contract of service first takes effect between two periods of incapacity for work which by virtue of section 2(3) of this Act are treated as one, the period of entitlement begins with the first day of the second of those periods.

(6B) In any case where, otherwise than by virtue of section 4(2)(6) of the principal Act (exclusion of liability where earnings are below the lower earnings limit), an employee's earnings under a contract of service in respect of the day on which the contract takes effect do not attract a liability to pay secondary Class 1 contributions, subsections (6) and (6A) above shall have effect as if for any reference to the contract first taking effect there were substituted a reference to the first day in respect of which the employee's earnings attract such a liability.”.

5 The following provisions of that Act (which relate to certain payments wrongly made)—

(a) section 24 ; and

(b) paragraphs 7 to 11 of Schedule 2,

shall cease to have effect.

6 (1) In subsection (1) of section 26 of that Act (interpretation) the following definition shall be substituted for the definition of " employer " —

• “" employer", in relation to an employee and a contract of service of his, means a person who under section 4 of the principal Act (liability to pay Class 1 contributions) is, or but for subsection (2)(b) of that section (exclusion of liability where earnings are below lower earnings limit) would be, liable to pay secondary Class 1 contributions in relation to any earnings (within the meaning of that Act) of the employee under the contract;”.

(2) Sub-paragraph (1) above shall not have effect in relation to periods of entitlement (within the meaning of section 3 of that Act) beginning before the commencement of this paragraph.

7 In section 26(2) of that Act for the words " his average weekly earnings in the relevant period " there shall be substituted the words " the average weekly earnings which in the relevant period have been paid to him or paid for his benefit".