Explanatory note

Section 159A of the Social Security Contributions and Benefits Act 1992 and section 155A of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 provide that the Secretary of State may by order provide for the recovery by employers of amounts of statutory sick pay. Orders were made in 1995 under those sections to provide for such recoveries. The arrangements under those Orders are known as the statutory sick pay percentage threshold scheme.

Article 2 revokes the 1995 Orders so as to abolish such schemes in Great Britain and Northern Ireland with effect from 6th April 2014.

Article 3 of this Order makes transitional and saving provisions which enable employers in Great Britain and Northern Ireland to continue recovery of statutory sick pay until 6th April 2016 for days of incapacity falling before 6th April 2014.

An assessment of the impact of this instrument on the private sector or civil society organisations has been made. The impact assessment is available in the libraries of both Houses of Parliament. It is available alongside this instrument and the Explanatory Memorandum on www. legislation.gov.uk. Copies of the impact assessment may also be obtained from the Better Regulation Unit of the Department for Work and Pensions, 2D Caxton House, Tothill Street, London SW1H 9NA.