From 27 October,all agency workers, regardless of their length of contract, will be entitled to receive Statutory Sick Pay.
Following an Assembly debate, Sir Reg explained how this restored the original policy intention.
He said: “The principle of the statutory payments legislation is to treat all workers who pay National Insurance contributions on their income in the same way, regardless of the length of their contract.
“As the law currently stands, agency workers with contracts of three months or less are the only group of workers who are not entitled to Statutory Sick Pay, although they are entitled to Statutory Maternity Pay, Statutory Adoption Pay and Statutory Paternity Pay. These minor changes will amend this anomaly and provide these agency workers with an entitlement to Statutory Sick Pay.”
The amending legislation, the Fixed-term Employees (Prevention of Less Favourable Treatment) (Amendment) (No. 2) Regulations (Northern Ireland) 2008, will come into operation on 27 October 2008.
Notes to Editors:
- The proposed change in the law follows a recent decision of the English Court of Appeal (HM Revenue and Customs –v- Thorn Baker) which ruled that, as the law stood, agency workers on contracts of three months or less are not entitled to receive Statutory Sick Pay. In order to restore the original policy intention of treating all workers the same way in relation to statutory payments regardless of the length of their contract, the legislation requires a minor technical amendment.
- Northern Ireland laws for fixed-term employees are the same as those for GB, and therefore also require amendment.
- These Regulations, the Fixed-term Employees (Prevention of Less Favourable Treatment) (Amendment) (No. 2) Regulations (Northern Ireland) 2008 effect the required legislative amendments.
- A partial regulatory impact assessment has concluded that costs to affected Northern Ireland employers will be approximately £337,000 per year. There will be savings for the Executive of £278,500 per year. Workers will benefit by £70,000 per year.
- Media queries to the Department for Employment and Learning Press Office on 028 9025 7872. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.
