Coronavirus Act 2020

39 Statutory sick pay: funding of employers’ liabilities

(1) The Social Security Contributions and Benefits Act 1992 has effect as if after section 159A there were inserted—

“159B Funding of employers’ statutory sick pay liabilities in relation to coronavirus

(1) The Commissioners for Her Majesty’s Revenue and Customs may by regulations make provision for the payment by employers of statutory sick pay in respect of incapacity for work related to coronavirus to be funded by Her Majesty’s Revenue and Customs to such extent and in such manner as may be prescribed.

(2) Regulations under subsection (1) may—

(a) make provision for a person who has made a payment of statutory sick pay in respect of an employee whose incapacity for work is related to coronavirus to be entitled, except in prescribed circumstances, to recover some or all of that payment;

(b) include provision for a person who has made a payment of statutory sick pay in respect of an employee whose incapacity for work is related to coronavirus to be entitled, except in prescribed circumstances, to recover an additional amount, determined in such manner as may be prescribed.

(3) Regulations under subsection (1) may make provision about when an employee’s incapacity for work is related to coronavirus.

(4) Regulations under subsection (1) may, in particular, make provision—

(a) for funding in advance as well as in arrear;

(b) for funding, or the recovery of amounts due under provision made by virtue of subsection (2)(b), by means of deductions from such amounts for which employers are accountable to Her Majesty’s Revenue and Customs as may be prescribed, or otherwise;

(c) for the recovery by Her Majesty’s Revenue and Customs of any sums overpaid to employers under the regulations.

(5) Where in accordance with any provision of regulations under subsection (1) an amount has been deducted from an employer’s contributions payments, the amount so deducted is (except in such cases as may be prescribed) to be treated for the purposes of any provision made by or under any enactment in relation to primary or secondary Class 1 contributions—

(a) as having been paid (on such date as may be determined in accordance with the regulations), and

(b) as having been received by Her Majesty’s Revenue and Customs,

towards discharging the employer’s liability in respect of such contributions.

(6) Regulations under subsection (1) may make provision—

(a) about the procedure for an employer to make a claim under those regulations;

(b) about the determination of claims by Her Majesty’s Revenue and Customs;

(c) requiring an employer to keep records in relation to payments of statutory sick pay in respect of incapacity for work related to coronavirus.

(7) Regulations under subsection (1) may have retrospective effect in relation to a day of incapacity for work that falls on or after 13 March 2020.

(8) In this section—

• “contributions payments”, in relation to an employer, means any payments which the employer is required, by or under any enactment, to make in discharge of any liability in respect of primary or secondary Class 1 contributions;

• “coronavirus” means severe acute respiratory syndrome coronavirus 2.

(9) Regulations under subsection (1) must be made with the concurrence of the Secretary of State.”

(2) The Social Security Administration Act 1992 has effect as if in section 113A (statutory sick pay and statutory maternity pay: breach of regulations)—

(a) in subsection (1)(c), after “153(5)(b)” there were inserted “or 159B”;

(b) in subsection (3), after “132” there were inserted “of this Act, or section 159B of the Contributions and Benefits Act”.

(3) The Social Security Administration Act 1992 has effect as if in section 113B (statutory sick pay and statutory maternity pay: fraud and negligence)—

(a) in subsection (1)(b)(iii), after “153(5)(b)” there were inserted “or 159B”;

(b) after subsection (2) there were inserted—

“(2A) Where an employer fraudulently or negligently receives a payment in pursuance of regulations under section 159B of the Contributions and Benefits Act (funding of employers’ statutory sick pay liabilities in relation to coronavirus), the employer is liable to a penalty not exceeding £3,000.”