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PART IIIE+W+S DEDUCTION FROM EARNINGS ORDERS

Interpretation of this PartE+W+S

8.—(1) For the purposes of this Part—

(2) For the purposes of this Part the relationship of employer and employee shall be treated as subsisting between two persons if one of them, as a principal and not as a servant or agent, pays to the other any sum defined as earnings under paragraph (1) and “employment”, “employer” and “employee” shall be construed accordingly.

(3) Subject to paragraph (4), “earnings” are any sums payable to a person—

(a)by way of wages or salary (including any fees, bonus, commission, overtime pay or other emoluments payable in addition to wages or salary or payable under a contract of service);

(b)by way of pension (including an annuity in respect of past service, whether or not rendered to the person paying the annuity, and including periodical payments by way of compensation for the loss, abolition or relinquishment, or diminution in the emoluments, of any office or employment);

(c)by way of statutory sick pay.

(4) “Earnings” shall not include—

(a)sums payable by any public department of the Government of Northern Ireland or of a territory outside the United Kingdom;

(b)pay or allowances payable to the liable person as a member of Her Majesty’s forces [F14other than pay or allowances payable by his employer to him as a special member of a reserve force (within the meaning of the Reserve Forces Act 1996)];

(c)pension, allowances or benefit payable under any enactment relating to social security;

(d)pension or allowances payable in respect of disablement or disability;

(e)guaranteed minimum pension within the meaning of the Social Security Pensions Act 1975 M2.

[F15(f)working tax credit payable under section 10 of the Tax Credits Act 2002.]

(5) “Net earnings” means the residue of earnings after deduction of—

(a)income tax;

(b)primary class I contributions under Part I of the Contributions and Benefits Act 1992 M3;

(c)amounts deductible by way of contributions to a superannuation scheme which provides for the payment of annuities or [F16lump] sums—

(i)to the employee on his retirement at a specified age or on becoming incapacitated at some earlier age; or

(ii)on his death or otherwise, to his personal representative, widow, [F17surviving civil partner,] relatives or dependants.

Textual Amendments

F1Words in reg. 8(1) inserted (18.4.1995) by S.I. 1995/1045, reg. 1(2), 14(2)

F2Words in reg. 8(1) omitted (3.3.2003, See reg. 1 of S.I. for when to apply for different circumstances) by S.I. 2001/162, reg. 1(3), 2(5)(a)(i) (with reg. 6)

F3Words in reg. 8(1) substituted (18.4.1995) by S.I. 1995/1045, reg. 1(2), 14(3)

F4Words in reg. 8(1) omitted (3.3.2003, See reg. 1 of S.I. for when to apply for different circumstances) by S.I. 2001/162, reg. 1(3), 2(5)(a)(i) (with reg. 6)

F5Words in reg. 8(1) omitted (3.3.2003, See reg. 1 of S.I. for when to apply for different circumstances) by S.I. 2001/162, reg. 1(3), 2(5)(a)(i) (with reg. 6)

F6Words in reg. 8(1) inserted (18.4.1995) by S.I. 1995/1045, reg. 1(2), 14(4)

F7Words in reg. 8(1) substituted (7.10.1996) by S.I. 1996/1945, reg. 1(2), 3(2)

F9Words in reg. 8(1) inserted (3.3.2003, See reg. 1 of S.I. for when to apply for different circumstances) by S.I. 2001/162, reg. 1(3), 2(5)(a)(ii) (with reg. 6)

F10Words in reg. 8(1) omitted (3.3.2003, See reg. 1 of S.I. for when to apply for different circumstances) by S.I. 2001/162, reg. 1(3), 2(5)(a)(i) (with reg. 6)

F11Words in reg. 8(1) omitted (3.3.2003, See reg. 1 of S.I. for when to apply for different circumstances) by S.I. 2001/162, reg. 1(3), 2(5)(a)(i) (with reg. 6)

F12Words in reg. 8(1) omitted (3.3.2003, See reg. 1 of S.I. for when to apply for different circumstances) by S.I. 2001/162, reg. 1(3), 2(5)(a)(i) (with reg. 6)

F13Words in reg. 8(1) inserted (18.4.1995) by S.I. 1995/1045, reg. 1(2), 14(5)

F14Words in reg. 8(4)(b) inserted (6.4.1999) by S.I. 1999/977, reg. 1(2), 2(2)

F16Words in reg. 8(5)(c) substituted (5.4.1993) by S.I. 1993/913, reg. 1(1), 41

Marginal Citations