Paragraph 12A F1

United Kingdom

(1)

The number of employees requirement in the case of a single company is that the full-time equivalent employee number for it is less than

(F2a)

500, or

(b)

where the company is a specified Northern Ireland company, 250.

(2)

The number of employees requirement in the case of a parent company is that the sum of—

(a)

the full-time equivalent employee number for it, and

(b)

the full-time equivalent employee numbers for each of its qualifying subsidiaries,

is less than F3500 or, where the employer company is a specified Northern Ireland company, 250.

(3)

The full-time equivalent employee number for a company is calculated as follows—

Step 1

Find the number of full-time employees of the company.

Step 2

Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.

The result is the full-time equivalent employee number.

(4)

In this paragraph references to an employee—

(a)

include a director, but

(b)

do not include—

(i)

an employee on maternity F4, paternity F5, shared parental F6, parental bereavement or neonatal care leave, or

(ii)

a student on vocational training.

Annotations

F1: Sch. 5 para. 12A and cross-heading inserted (with effect in accordance with s. 33(6) of the amending Act) by Finance Act 2008 (c. 9), s. 33(3)
F2: Sch. 5 para. 12A(1)(a)(b) inserted (6.4.2026) by Finance Act 2026 (c. 11), s. 13(5)(a)(9)
F3: Words in Sch. 5 para. 12A(2) inserted (6.4.2026) by Finance Act 2026 (c. 11), s. 13(5)(b)(9)
F4: Words in Sch. 5 para. 12A(4)(b)(i) substituted (1.12.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 63(2); S.I. 2014/1640, art. 5(2)(aa)
F5: Words in Sch. 5 para. 12A(4)(b)(i) substituted (18.1.2020) by Parental Bereavement (Leave and Pay) Act 2018 (c. 24), s. 2(2), Sch. para. 61(1)(a); S.I. 2020/45, reg. 2
F6: Words in Sch. 5 para. 12A(4)(b)(i) substituted (17.1.2025) by Neonatal Care (Leave and Pay) Act 2023 (c. 20), s. 3(3), Sch. para. 48(2); S.I. 2025/41, reg. 2