Liability of the Board to pay statutory paternity pay or statutory adoption payE+W+S
43.—(1) Where—
(a)an officer of the Board has decided that an employer is liable to make payments of statutory paternity pay or, as the case may be, statutory adoption pay to a person;
(b)the time for appealing against the decision has expired; and
(c)no appeal against the decision has been lodged or leave to appeal against the decision is required and has been refused,
then for any week in respect of which the employer was liable to make payments of statutory paternity pay or, as the case may be, statutory adoption pay but did not do so, and for any subsequent weeks in the paternity pay period or, as the case may be, adoption pay period, the liability to make those payments shall, notwithstanding sections 171ZD and 171ZM of the Act, be that of the Board and not the employer.
(2) Liability to make payments of statutory paternity pay or, as the case may be, statutory adoption pay shall, notwithstanding sections 171ZD and 171ZM of the Act, be a liability of the Board and not the employer as from the week in which the employer first becomes insolvent until the end of the paternity pay or adoption pay period.
(3) For the purposes of paragraph (2) 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 made under section 421 of the Insolvency Act 1986 M1; or
(iii)where an employer is a company or a limited liability partnership, a winding-up order or an administration order is made or a resolution for a voluntary winding-up is passed (or, in the case of a limited liability partnership, a determination for a voluntary winding-up has been made) with respect to it, or a receiver or a 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 or limited liability partnership comprised in or subject to the charge, or a voluntary arrangement proposed for the purposes of Part 1 of the Insolvency Act 1986 is approved under that Part of that Act;
(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 M2 is required by that section to divide his insolvent estate among his creditors; or
(iii)where the employer is a company or a limited liability partnership, a winding-up order or an administration order is made or a resolution for voluntary winding-up is passed (or, in the case of a limited liability partnership, a determination for a voluntary winding-up is made) with respect to it, or a receiver of its undertaking is duly appointed, or a voluntary arrangement proposed for the purposes of Part 1 of the Insolvency Act 1986 is approved under that Part.
Modifications etc. (not altering text)
C1Regs. 41-47 applied (30.5.2003) by The Statutory Paternity Pay (Adoption) and Statutory Adoption Pay (Adoptions from Overseas) (No. 2) Regulation 2003 (S.I. 2003/1194), regs. 1, 3(1)–(3)
Marginal Citations
M21889 c. 39. Section 11A was inserted by the Bankruptcy (Scotland) Act 1985 (c. 66), Schedule 7, paragraph 4.