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The Statutory Maternity Pay (General) Regulations 1986

Changes over time for: Section 7

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Version Superseded: 03/11/2008

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Liability of Secretary of State to pay Statutory Maternity Pay

7.—(1) Where—

(a)an adjudicating authority has determined that an employer is liable to make payments of statutory maternity pay to a woman, and

(b)the time for appealing against that determination has expired, and

(c)no appeal against the determination has been lodged or leave to appeal against the determination is required and has been refused,

then for any week in respect of which the employer was liable to make payments of statutory maternity pay but did not do so, and for any subsequent weeks in the maternity pay period the liability to make those payments shall, notwithstanding section 46(3) of the 1986 Act, be that of the Secretary of State and not the employer.

(2) In paragraph (1) adjudicating authority means, as the case may be, the Chief or any other adjudication officer, a Social Security Appeal Tribunal or the Chief or any other Social Security Commissioner.

(3) Liability to make payments of statutory maternity pay shall, notwithstanding section 46(3) of the 1986 Act, be a liability of the Secretary of State and not the employer as from the week in which the employer first becomes insolvent until the end of the maternity pay period.

(4) For the purposes of paragraph (3) an employer shall be taken to be insolvent if, and only if—

(a)in England and Wales—

(i)he has been adjudged bankrupt or has made a composition or arrangement with his creditors;

(ii)he has died and his estate falls to be administered in accordance with an order under section 421 of the Insolvency Act 1986; or

(iii)where an employer is a company, a winding-up order F1... is made or a resolution for voluntary winding-up is passed with respect to it [F2or it enters administration], or a receiver or manager of its undertaking is duly appointed, or possession is taken by or on behalf of the holders of any debentures secured by a floating charge, of any property of the company comprised in or subject to the charge or a voluntary arrangement proposed for the purposes of Part I of the Insolvency Act 1986 is approved under that Part;

(b)in Scotland—

(i)an award of sequestration is made on his estate or he executes a trust deed for his creditors or enters into a composition contract;

(ii)he has died and a judicial factor appointed under section 11A of the Judicial Factors (Scotland) Act 1889(1) is required by that section to divide his insolvent estate among his creditors; or

(iii)where the employer is a company, a winding-up order F3... is made or a resolution for voluntary winding-up is passed with respect to it [F4or it enters administration] or a receiver of its undertaking is duly appointed or a voluntary arrangement proposed for the purposes of Part I of the Insolvency Act 1986 is approved under that Part.

Textual Amendments

F1Words in reg. 7(4)(a)(iii) omitted (15.9.2003) by virtue of The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 44(a)(i) (with art. 6)

F3Words in reg. 7(4)(b)(iii) omitted (15.9.2003) by virtue of The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 44(b)(i) (with art. 6)

(1)

section 11A was inserted by the Bankruptcy (Scotland) Act 1985 (c. 66), section 75(1), Schedule 7, paragraph 4.

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