Part VIIIIncome and Capital

Chapter IIIEmployed Earners

Earnings of employed earners98.

(1)

Subject to paragraphs (2) and (3), “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 4 weeks after the termination or interruption of employment but this exception shall not apply to a person who is, or would be, prevented from being entitled to a jobseeker’s allowance by Article 16 of the Order (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 his home and place of employment;

(ii)

expenses incurred by the claimant under arrangements made for the care of a member of his family owing to the claimant’s absence from home;

(f)

any payment, remuneration or award of compensation made under Article 31, 32(2)(a) or (5), 39 or 41(1) to (3) of the Industrial Relations (Northern Ireland) Order 197691 (order for reinstatement or re-engagement, compensation for unfair dismissal and interim relief pending determination of complaint) or Article 3, 9 or 23 of the Industrial Relations (No. 2) (Northern Ireland) Order 197692 (right to guarantee payment, right to remuneration on suspension on medical grounds and payments to employees out of maternity pay fund);

(g)

any award of compensation made under Article 33, 34, 39(1) to (10), 39A, 40, 40A, 41, 51 or 53 of the Industrial Relations (Northern Ireland) Order 197693 (compensation for unfair dismissal or redundancy on grounds of involvement in trade union activities);

(h)

any payment made under the legislation of, or under any scheme operating in, the Republic of Ireland which is analogous to any income to which sub-paragraphs (a) to (g) relate.

(2)

“Earnings” shall not include—

(a)

any payment in kind;

(b)

any periodic sum paid to a claimant on account of the termination of his 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 or is absent from work because he is 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 11(1) of the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 196594.

(3)

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 paragraph (1)(f) or (2);

(d)

any refund of contributions to which that person was entitled under an occupational pension scheme.