Explanatory note

These Regulations provide for the refund of National Insurance contributions where contractual maternity pay becomes repayable to an employer because the employee fails to return to her employment after the pregnancy or confinement.

Regulation 2(1) provides for the refunds of contributions in respect of maternity pay which becomes repayable after 31st March 1990 if application is made to the Secretary of State and if the net amount of contributions to be refunded exceeds a specified amount. No application may be made unless the contractual maternity pay has been refunded or unless an employer can satisfy the Secretary of State that he has taken all reasonable steps to recover it (regulation 2(2)). The manner of application and time limits are specified in regulation 2(3). Regulation 2(4) defines “contractual maternity pay” and “standard rate”.

Regulation 3 provides for the deduction from the amount of contributions refundable of any amount paid by way of contributory benefit which would not have been paid had any of the refundable contributions not been originally paid.

Regulation 4 effects consequential amendments to the Social Security (Contributions) Regulations 1979, to allow an employer to make “in-year” adjustments in respect of repaid contractual maternity pay.