Age Restrictions for Statutory Payments and Record Keeping

The legislation which removes the age restrictions for Statutory Payments came into effect on 1 October 2006 and relates to younger employees (aged under 16) and older employees (aged 65 or over).

A further change, introduced by the Work and Families Act, is a new statutory leave and pay entitlement – Additional Paternity Leave and Additional Statutory Paternity Pay. Details are still being worked up and the intention is for the entitlement to be introduced when SMP and SAP are extended to 52 weeks.

SMP recalculations (the Alabaster Ruling)

If a woman entitled to SMP is awarded a pay rise any time between the start of her set period (the period used to calculate her average weekly earnings) and the end of her maternity leave, (ordinary or additional), you must recalculate her average weekly earnings using the revised pay award and pay her the difference between the two amounts.

If you used our CD-ROM or Internet calculator to make the original calculation you should re-enter the original details but, when you enter her earnings for the set period, you need to enter her revised pay.

Once you have completed the calculation, compare the amount originally paid with the amount due on the revised calculation, and pay the difference.

Statutory Sick Pay Reform

In response to the consultation on SSP reform, many employers expressed concern over the potential costs of the proposals. In the absence of any consensus the proposals were withdrawn from the Welfare Reform Bill. However, the Government will continue to work with employer and employee representatives to consider whether there are any alternative approaches to simplification.

Other changes to Statutory Sick Pay

From 9 October there will be changes for some employees who received Incapacity Benefit within the last two years. If an employee has shown you a Jobcentre Plus form BF220 or similar, they can reclaim Incapacity Benefit if they fall ill again within two years of their last payment of benefit. Instead of paying SSP you should issue form SSP 1 so they can reclaim benefit.