Explanatory note

These regulations provide for compensation of employers who have made payments of statutory maternity pay under the Social Security Act1986.

They are made under section 49(1) of, and paragraphs 1 and 5 of Schedule 4 to, the Social Security Act 1986, all of which come into force on6th April 1987 (see the Social Security Act 1986 (Commencement No. 4) Order 1986, S.I. 1986/1959 (C.73)). As the regulations are made before theend of a period of 12 months from the coming into force of the above provisions, they are exempted by section 61(5)(a) of the Social Security Act1986 from the requirement under section 10(1) of the Social Security Act 1980 (c. 30) to refer proposals to the Social Security Advisory Committeeand are made without reference to that Committee.

Regulations 2 and 3 provide that an employer who has made a payment of statutory maternity pay shall be entitled to a sum equal to apercentage of the statutory maternity pay he has paid.

Regulation 4 provides that, subject to specified exceptions, an employer may recover the amount of the statutory maternity pay he has paidand the additional sum to which he is entitled under regulations 2 and 3 by making one or more deductions from the payments of Class 1contributions which he is required to make under the Social Security Act 1975 (c. 14).

Regulation 5 specifies circumstances in which the Secretary of State is to pay to an employer a sum which the employer has paid as statutorymaternity pay or to which he is entitled under regulations 2 and 3.

When a deduction has been made under regulation 4, the amount deducted is treated under paragraph 5 of Schedule 4 to the Social SecurityAct 1986 as having been paid towards discharging the liability for contributions under the 1975 Act. Regulation 6 makes provision for determiningthe date on which it is to be treated as having been paid.