Explanatory note

These Regulations are consequential on the coming into force of the Statutory Sick Pay Percentage Threshold Order 1995 (“the Percentage Threshold Order”), which allows employers to recover payments of statutory sick pay in excess of 13 per cent. of their liability for Class 1 contributions payments in any income tax month.

Regulation 2 provides for savings in respect of the regulations (revoked by the Percentage Threshold Order) which provided primarily for relief of small employers who had made payments of statutory sick pay.

Regulation 3 amends the Statutory Sick Pay (General) Regulations 1982 by inserting a new regulation 21A. This provides for an employer who elects to be treated as different employers for income tax purposes to be treated as one employer for the purposes of provisions relating to recovery of statutory sick pay.

These Regulations do not impose any costs on business. An assessment of the compliance costs of the Percentage Threshold Order has been made and a copy been placed in the libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, Room 06/09A, Adelphi, 1 – 11 John Adam Street, London WC2N 6HT.