OpenLegislation

Explanatory note

Original text. Later amendments are not shown.

(This note is not part of the Regulations)

This instrument contains only Regulations made consequential upon the Statutory Sick Pay Act 1994 (“the Act”). As it is made before the end of the period of 6 months beginning with the coming into force of that enactment it is exempted by section 173(5) of the Social Security Administration Act 1992 from reference to the Social Security Advisory Committee and has not been so referred.

The Act removes the right of employers, except where small employers' relief applies, to recover 80 per cent. of sums paid by them by way of statutory sick pay.

Regulation 2 amends regulation 2(1) of the Statutory Sick Pay (Compensation of Employers) and Miscellaneous Provisions Regulations 1983 by removing the reference to the recovery of 80 per cent. of statutory sick pay.

Regulation 3 amends regulation 2 of the Social Security (Recoupment) Regulations 1990 so that the Secretary of State can no longer recover from compensation payments the sum equivalent to 80 per cent. of statutory sick pay which the employer was liable to make.

Regulation 4 enables an employer to recover or to be repaid (as the case may be) any payments of statutory sick pay paid in respect of any day of incapacity for work before 6th April 1994.

Regulation 5 enables the Secretary of State to recover from compensation payments any statutory sick pay paid by the employer which is recoverable for days of incapacity for work before 6th April 1994.

Regulation 6 enables women over the age of 60 who have a period of incapacity for work running at 6th April 1994 to qualify for statutory sick pay, except where remuneration under their contract of service is payable at a rate equal to, or more than statutory sick pay.

An assessment of the cost to business of the removal of the right of employers to recover 80 per cent. of the sums paid by them by way of statutory sick pay and the extension of entitlement to statutory sick pay to women over the age of 60 was contained in the explanatory and financial memorandum to the Statutory Sick Pay Bill. Copies of the compliance cost assessment (CCA) can be obtained by post from DSS, Room 903, Adelphi, 1-11 John Adam Street, London WC2N 6HT.