Social Security and Housing Benefits Act 1982

PART I — Statutory Sick Pay

Employer's liability

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• (1) Where an employee has a day of incapacity for work in relation to his contract of service with an employer, that employer shall, if the conditions set out in sections 2 to 4 of this Act are satisfied, be liable to make to him, in accordance with the following provisions of this Part, a payment (to be known as " statutory sick pay ") in respect of that day.

• (2) Any agreement shall be void to the extent that it purports—

• (a) to exclude, limit or otherwise modify any provision of this Part; or

• (b) to require an employee to contribute (whether directly or indirectly) towards any costs incurred by his employer under this Part.

• (3) For the purposes of this Part a day shall not be treated as a day of incapacity for work in relation to any contract of service unless on that day the employee concerned is, or is deemed in accordance with regulations to be, incapable by reason of some specific disease or bodily or mental disablement of doing work which he can reasonably be expected to do under that contract.

• (4) In any case where an employee has more than one contract of service with the same employer the provisions of this Part shall, except in such cases as may be prescribed and subject to the following provisions of this Part, have effect as if the employer were a different employer in relation to each contract of service.

The qualifying conditions

Period of incapacity for work

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• (1) The first condition is that the day in question forms part of a period of incapacity for work.

• (2) In this Part " period of incapacity for work " means any period of four or more consecutive days, each of which is a day of incapacity for work in relation to the contract of service in question.

• (3) Any two periods of incapacity for work which are separated by a period of not more than two weeks shall be treated as a single period of incapacity for work.

• (4) No day of the week shall be disregarded in calculating any period of consecutive days for the purposes of this section.

• (5) A day may be a day of incapacity for work in relation to a contract of service, and so form part of a period of incapacity for work, notwithstanding that—

• (a) it falls before the making of the contract or after the contract expires or is brought to an end ; or

• (b) it is not a day on which the employee concerned would be required by that contract to be available for work.

Period of entitlement

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• (1) The second condition is that the day in question falls within a period which is, as between the employee and his employer, a period of entitlement.

• (2) For the purposes of this Part a period of entitlement as between an employee and his employer, is a period beginning with the commencement of a period of incapacity for work and ending with whichever of the following first occurs—

• (a) the termination of that period of incapacity for work;

• (b) the day on which the employee reaches, as against the employer concerned, his maximum entitlement to statutory sick pay (determined in accordance with section 5 of this Act);

• (c) the day on which the employee's contract of service with the employer concerned expires or is brought to an end;

• (d) in the case of an employee who is, or has been, pregnant, the day immediately preceding the beginning of the disqualifying period.

• (3) Schedule 1 to this Act has effect for the purpose of specifying circumstances in which a period of entitlement does not arise in relation to a particular period of incapacity for work.

• (4) A period of entitlement as between an employee and an employer of his may also be, or form part of, a period of entitlement as between him and another employer of his.

• (5) Regulations may provide, in relation to prescribed cases, for a period of entitlement to end otherwise than in accordance with subsection (2) above.

• (6) In a case where the employee's contract of service first takes effect on a day which falls within a period of incapacity for work, the period of entitlement begins with that day.

• (7) Regulations shall make provision as to an employer's liability under this Part to pay statutory sick pay to an employee in any case where the employer's contract of service with that employee has been brought to an end by the employer solely, or mainly, for the purpose of avoiding liability for statutory sick pay.

• (8) Subsection (2)(d) above does not apply in relation to an employee who has been pregnant if her pregnancy terminated, before the beginning of the disqualifying period, otherwise than by confinement.

• (9) In this section—

• " confinement " has the same meaning as in section 23 of the principal Act;

• " disqualifying period " means the period of eighteen weeks beginning with the eleventh week before the expected week of confinement; and

• " expected week of confinement " has the same meaning as in section 22 of the principal Act.

Qualifying days

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• (1) The third condition is that the day in question is a qualifying day.

• (2) The days which are, for the purposes of this Part, to be qualifying days as between an employee and an employer of his (that is to say those days of the week on which he is required by his contract of service with that employer to be available for work or which are chosen to reflect the terms of that contract) shall be such day, or days, as may be agreed between the employee and his employer or, failing such agreement, determined in accordance with regulations.

• (3) In any case where qualifying days are determined by agreement between an employee and his employer there shall, in each week (beginning with Sunday), be at least one qualifying day.

• (4) A day which is a qualifying day as between an employee and an employer of his may also be a qualifying day as between him and another employer of his.

Limitations on entitlement, etc.

Limitations on entitlement

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• (1) Statutory sick pay shall not be payable for the first three qualifying days in any period of entitlement.

• (2) An employee shall not be entitled, as against any one employer, to an aggregate amount of statutory sick pay in respect of any one period of entitlement, or tax year, which exceeds his maximum entitlement.

• (3) The maximum entitlement as against any one employer is reached on the day on which the amount to which the employee has become entitled by way of statutory sick pay during the period of entitlement in question or, as the case may be, the aggregate amount to which he has become so entitled during the tax year in question first reaches or passes the entitlement limit.

• (4) The entitlement limit is an amount equal to eight times the appropriate weekly rate set out in section 7 of this Act.

• (5) Regulations may make provision for calculating the entitlement limit in any case where an employee's entitlement to statutory sick pay is calculated by reference to different weekly rates in the same tax year or period of entitlement.

Notification of incapacity for work

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• (1) Regulations shall prescribe the manner in which, and the time within which, notice of any day of incapacity for work is to be given by or on behalf of an employee to his employer.

• (2) An employer who would, apart from this section, be liable to pay an amount of statutory sick pay to an employee in respect of a qualifying day (the " day in question ") shall be entitled to withhold payment of that amount if—

• (a) the day in question is one in respect of which he has not been duly notified in accordance with regulations under subsection (1) above ; or

• (b) he has not been so notified in respect of any of the first three qualifying days in a period of entitlement (a " waiting day ") and the day in question is the first qualifying day in that period of entitlement in respect of which the employer is not entitled to withhold payment—

• (i) by virtue of paragraph (a) above; or

• (ii) in respect of an earlier waiting day by virtue of this paragraph.

• (3) Where an employer withholds any amount of statutory sick pay under this section—

• (a) the period of entitlement in question shall not be affected; and

• (b) for the purposes of calculating his maximum entitlement in accordance with section 5 of this Act, the employee shall not be taken to have become entitled to the amount so withheld.

Rate of payment, etc.

Rate of payment

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• (1) Statutory sick pay shall be payable by an employer at the weekly rate of—

• (a) £37, in a case where the employee's normal weekly earnings under his contract of service with that employer are not less than £60 ;

• (b) £31, in a case where those earnings are less than £60 but not less than £45 ; or

• (c) £25, in any other case.

• (2) The amount of statutory sick pay payable by any one employer in respect of any day shall be the weekly rate applicable on that day divided by the number of days which are, in the week (beginning with Sunday) in which that day falls, qualifying days as between that employer and the employee concerned.

• (3) The Secretary of State shall in the tax year 1982-1983, and in each subsequent tax year, review the sums specified in subsection (1)(a), (b) and (c) above for the purpose of determining whether they have retained their value in relation to the general level of prices obtaining in Great Britain.

• (4) For the purposes of any such review the Secretary of State shall estimate the general level of prices in such manner as he thinks fit.

• (5) Following any such review the Secretary of State may, in the tax year in which the review is carried out, prepare and lay before Parliament the draft of an order increasing one or more of the sums by such amount as he considers appropriate.

• (6) If a draft order laid before Parliament in pursuance of this section is approved by resolution of each House, the Secretary of State shall make an order in the form of the draft.

• (7) If on a review under this section the Secretary of State concludes that the general level of prices in Great Britain has risen during the period under review, but decides—

• (a) not to prepare and lay before Parliament the draft of an order increasing one or more of the sums ; or

• (b) to prepare, and so lay, the draft of an order which provides for no increase in any one or more of the sums, or for an increase in any of them which differs from the appropriate amount;

he shall, unless in his opinion the amount by which that general level has risen, or, as the case may be, the amount by which an increase differs from the appropriate amount, is inconsiderable, lay before Parliament a report explaining his reasons for so deciding.

• (8) If on a review under this section the Secretary of State concludes that the general level of prices in Great Britain has not risen during the period under review but decides to prepare and lay before Parliament the draft of an order increasing one or more of the sums, he shall lay before Parliament a report explaining his reasons for so deciding.

• (9) In subsection (7) above " appropriate amount " means the amount which would, in the opinion of the Secretary of State, reflect the amount by which the general level of prices in Great Britain has risen during the period under review.

• (10) A draft order prepared under subsection (5) above shall be framed so as to bring the increases in the sums to which it relates into force on the first day of the tax year beginning after the tax year in which the order is laid before Parliament in draft; and shall make such transitional provision as the Secretary of State considers expedient in respect of periods of entitlement running at that date.

Regulations as to method of payment, etc.

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• (1) Regulations may prescribe the manner in which statutory sick pay may, and may not, be paid.

• (2) Regulations may prescribe, in relation to any case where—

• (a) a decision has been made by an insurance officer, local tribunal or Commissioner in proceedings under this Part that an employee is entitled to an amount of statutory sick pay ; and

• (b) the time for bringing an appeal against the decision has expired and either—

• (i) no such appeal has been brought; or

• (ii) such an appeal has been brought and has been finally disposed of;

the time within which that amount of statutory sick pay is to be paid.

• (3) Regulations may make provision—

• (a) enabling a person to be appointed to exercise, on behalf of an employee who may be or become unable for the time being to act, any right or power which the employee may be entitled to exercise under this Part;

• (b) authorising a person so appointed to receive and deal with, on behalf of the employee, any sum payable by way of statutory sick pay ;

• (c) in connection with an employee's death—

• (i) enabling proceedings on a question as to, or arising under this Part in connection with, entitlement to statutory sick pay to be begun or continued in his name;

• (ii) authorising payment or distribution of statutory sick pay to or amongst persons claiming as his personal representatives, legatees, next of kin, or creditors (or, in any case where a deceased employed earner was illegitimate, to or amongst others); and

• (iii) dispensing with strict proof of the title of persons so claiming ; and

• (d) adjusting amounts payable by way of statutory sick pay so as to avoid fractional amounts or facilitate computation.

• (4) In subsection (3)(c)(ii) above " next of kin " means the persons who would take beneficially (or who, in Scotland, would be entitled to the moveable estate of the deceased) on an intestacy.

Recovery by employers of amounts paid by way of statutory sick pay

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• (1) Regulations shall make provision—

• (a) entitling, except in prescribed circumstances, any employer who has made a payment of statutory sick pay to recover the amount so paid by making one or more deductions from his contributions payments ; and

• (b) for the payment, in prescribed circumstances, by or on behalf of the Secretary of State of sums to employers who are unable so to recover the whole, or any part, of any payments of statutory sick pay which they have made.

• (2) In subsection (1)(a) above, "contributions payments", in relation to an employer, means any payments (other than payments arising under the National Insurance Surcharge Act 1976) which the employer is required, by or under any enactment, to make in discharge of any liability in respect of primary or secondary Class 1 contributions.

• (3) Regulations under this section may, in particular.—

• (a) require employers who have made payments of statutory sick pay to furnish to the Secretary of State such documents and information, at such times, as may be prescribed ; and

• (b) provide for any deduction made in accordance with the regulations to be disregarded for prescribed purposes.

• (4) The power to make regulations conferred by paragraph 5 of Schedule 1 to the principal Act (power to combine collection of contributions with collection of income tax) shall include power to make such provision as the Secretary of State considers expedient in consequence of any provision made by or under this section.

• (5) Provision made in regulations under paragraph 5 of Schedule 1, by virtue of subsection (4) above, may in particular require the inclusion—

• (a) in returns, certificates and other documents ; or

• (b) in any other form of record ;

which the regulations require to be kept or produced or to which those regulations otherwise apply, of such particulars relating to statutory sick pay as may be prescribed by those regulations.

• (6) Where, in accordance with any provision of regulations made under this section, an amount has been deducted from an employer's contributions payments, the amount so deducted shall (except in such cases as may be prescribed) be treated for the purposes of any provision made by or under any enactment in relation to primary or secondary Class 1 contributions as having been—

• (a) paid (on such date as may be determined in accordance with the regulations); and

• (b) received by the Secretary of State ;

towards discharging the liability mentioned in subsection (2) above.

• (7) Any sums paid under regulations made by virtue of subsection (1)(b) above shall be paid out of the National Insurance Fund.

• (8) Any employer who, in purporting to comply with any requirement imposed by regulations under this section—

• (a) produces or furnishes, or causes or knowingly allows to be produced or furnished, any document or information which he knows to be false in a material particular ; or

• (b) recklessly produces or furnishes any document or in formation which is false in a material particular ;

shall be guilty of an offence.

• (9) A person guilty of an offence under subsection (8) above shall be liable, on summary conviction—

• (a) in the case of an offence under paragraph (a), to a fine not exceeding £1,000 or to imprisonment for a term of not more than three months or to both; or

• (b) in the case of an offence under paragraph (b), to a fine not exceeding £500.

• (10) Subsections (8) and (9) above shall apply, in place of the provision made by section 98(2) of the Taxes Management Act 1970 (penalties for providing false information etc.) as applied by paragraph 5(2) of Schedule 1 to the principal Act, in relation to such requirements of the regulations made under paragraph 5 of Schedule 1 by virtue of subsection (4) above as may be specified in those regulations.

Relationship with benefits and other payments, etc.

Relationship with benefits and other payments, etc.

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Schedule 2 to this Act has effect with respect to the relationship between statutory sick pay and certain benefits and payments and for the purpose of modifying other enactments.

Determination of questions

Determination of questions by Secretary of State

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• (1) Any question arising under any provision of this Part, or of regulations under this Part, as to—

• (a) whether a person is, or was, an employee or employer of another;