58.—(1) Subject to paragraphs (2) and (4), “earnings” means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes—
(a)any bonus or commission;
(b)any compensation payment;
(c)any holiday pay except any payable more than four weeks after the termination or interruption of employment but this exception does not apply to a person who is, or would be, prevented from being entitled to a jobseeker's allowance by section 14 of the Act (trade disputes);
(d)any payment by way of a retainer;
(e)any payment made by the claimant's employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the claimant's employer in respect of—
(i)travelling expenses incurred by the claimant between their home and place of employment;
(ii)expenses incurred by the claimant under arrangements made for the care of a member of their family owing to the claimant's absence from home;
(f)any payment or award of compensation made under section 112(4), 113, 117(3)(a), 128, 131 or 132 of the Employment Rights Act 1996 (the remedies: orders and compensation, the orders, enforcement of order and compensation, interim relief) M1;
(g)any payment made or remuneration paid under section 28, 34, 64, 68 or 70 of the Employment Rights Act 1996 (right to guarantee payments, remuneration on suspension on medical or maternity grounds, complaints to employment tribunals) M2;
(h)any award of compensation made under section 156, 161 to 166, 189 or 192 of the Trade Union and Labour Relations (Consolidation) Act 1992 (compensation for unfair dismissal or redundancy on grounds of involvement in trade union activities, and protective awards) M3;
(i)the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person's earnings in accordance with Part 5 of Schedule 3 to the Social Security (Contributions) Regulations 2001.
(2) “Earnings” does not include—
(a)subject to paragraph (3), any payment in kind;
(b)any periodic sum paid to a claimant on account of the termination of their employment by reason of redundancy;
(c)any remuneration paid by or on behalf of an employer to the claimant in respect of a period throughout which the claimant is on maternity leave, paternity leave[F1, shared parental leave] or adoption leave or is absent from work because they are ill;
(d)any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;
(e)any occupational pension;
(f)any redundancy payment within the meaning of section 135(1) of the Employment Rights Act 1996;
(g)any lump sum payment made under the Iron and Steel Re-adaptation Benefits Scheme M4;
(h)any payment in respect of expenses arising out of the claimant's participation as a service user.
[F2(i)any bounty paid at intervals of at least one year and derived from employment to which paragraph 6 of the Schedule to these Regulations applies.]
(3) Paragraph (2)(a) does not apply in respect of any non-cash voucher referred to in paragraph (1)(i).
(4) In this regulation, “compensation payment” means any payment made in respect of the termination of employment other than—
(a)any remuneration or emolument (whether in money or in kind) which accrued in the period before the termination;
(b)any holiday pay;
(c)any payment specified in paragraphs (1)(f), (g), or (h) or (2);
(d)any refund of contributions to which the person was entitled under an occupational pension scheme.
Textual Amendments
F1Words in reg. 58(2)(c) inserted (31.12.2014) by The Shared Parental Leave and Statutory Shared Parental Pay (Consequential Amendments to Subordinate Legislation) Order 2014 (S.I. 2014/3255), arts. 1(2), 29(4)
F2Reg. 58(2)(i) inserted (28.4.2014) by The Universal Credit and Miscellaneous Amendments Regulations 2014 (S.I. 2014/597), regs. 1, 3(7)
Marginal Citations
M1Section 112(4) was amended by paragraph 36 of Schedule 7 to the Employment Act 2002 (c.22), section 8 of the Public Interest Disclosure Act 1998 (c.23) and Schedule 9 to the Employment Relations Act 1999 (c.26). Section 117(3)(a) was amended by paragraph 37 of Schedule 7 to the Employment Act 2002, section 8 of the Public Interest Disclosure Act 1998 and Schedule 9 to the Employment Relations Act 1999. Section 128 was amended by S.I. 2010/493. Sections 131 and 132 were amended by section 1 of the Employment Rights (Dispute Resolution) Act 1998 (c.8).
M2Sections 34 and 70 were amended by section 1 of the Employment Rights (Dispute Resolution) Act 1998 (c.8) and S.I. 2011/1133. Section 64 was amended by S.I. 1999/3232.
M3Section 156 was amended by paragraph 56 of Schedule 1 to the Employment Rights Act 1996 and S.I. 2011/3006. Section 161 was amended by paragraph 12 of Schedule 1 to the Employment Relations Act 2004 (c.24). Sections 162, 165 and 192 were amended by section 1 of the Employment Rights (Dispute Resolution) Act 1998 (c.8). Section 164 was amended by paragraph 69 of Schedule 8 to the Trade Union Reform and Employment Rights Act 1993. Section 166 was amended by section 1 of the Employment Rights (Dispute Resolution) Act 1998 and paragraph 22 of Schedule 7 to the Trade Union Reform and Employment Rights Act 1993. Section 189 was amended by section 1 of the Employment Rights (Dispute Resolution) Act 1998 and S.I.s 1995/2587 and 1999/1925.
M4The Scheme is set out in regulation 4 of, and the Schedule to, the European Communities (Iron and Steel Employees Re-adaptation Benefits Scheme) (No.2) Regulations 1996/3182.