The Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations 2002

Liability of the Board to pay statutory paternity pay or statutory adoption pay E+W+S

43.— [F1 (1) Notwithstanding sections 171ZD and 171ZM of the Act, where the conditions in regulation 42(2)(a) and (b) are satisfied, liability to make payments of statutory paternity pay or statutory adoption pay, as the case may be, is to be that of the Board and not the employer for—

(a) any week in respect of which the employer was liable to pay statutory paternity pay or statutory adoption pay to that person but did not do so, and

(b) any subsequent week in respect of which that person is entitled to payments of statutory paternity pay or statutory adoption pay.]

(2) Liability to make payments of statutory paternity pay or, as the case may be, statutory adoption pay [F2 in respect of any week in which a person is entitled to such payments] 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 [F3 adoption pay period or the qualifying period specified in regulations 6A or 12A, as the case may be].

(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 F4 ... 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 [F5 or it enters administration], 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 F6 ... 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 [F7 or it enters administration], 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.

Textual Amendments

F1 Reg. 43(1) substituted (8.3.2024) by The Statutory Paternity Pay (Amendment) Regulations 2024 (S.I. 2024/121), regs. 2, 15(a) (with regs. 5(1), 6)

F2 Words in reg. 43(2) inserted (8.3.2024) by The Statutory Paternity Pay (Amendment) Regulations 2024 (S.I. 2024/121), regs. 2, 15(b)(i) (with regs. 5(1), 6)

F3 Words in reg. 43(2) substituted (8.3.2024) by The Statutory Paternity Pay (Amendment) Regulations 2024 (S.I. 2024/121), regs. 2, 15(b)(ii) (with regs. 5(1), 6)

F4 Words in reg. 43(3)(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. 79(a) (with art. 6)

F5 Words in reg. 43(3)(a)(iii) inserted (15.9.2003) by The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 79(a) (with art. 6)

F6 Words in reg. 43(3)(b)(iii) revoked (15.9.2003) by The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 79(b) (with art. 6)

F7 Words in reg. 43(3)(b)(iii) inserted (15.9.2003) by The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 79(b) (with art. 6)

Modifications etc. (not altering text)

C1 Regs. 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

M1 1986 c. 45.

M2 1889 c. 39. Section 11A was inserted by the Bankruptcy (Scotland) Act 1985 (c. 66), Schedule 7, paragraph 4.