The High Court decision (Commissioners for HMRC V Thorn Baker Limited and others)

(“Thorn Baker”) means that SSP is not payable to Agency workers whose contract with the agency is for a specified period of 3 months or less.

However, agencies should note that their workers can become entitled to Statutory Sick Pay if in a single contract:

1 They work longer than the original period specified and the total period actually worked exceeds three months, OR

2 The contract is extended for more than three months.

Agency workers whose contracts are for three months or less can also become entitled to SSP if two or more such contracts with the same agency are separated by eight weeks or less, (56 days) and

1 The total length of the contracts is more than 13 weeks

2 The total period actually worked becomes more than 13 weeks or

3 The contracts are extended so that together they can run for more than 13 weeks.

"HMRC acknowledge that current guidance in helpbooks E14 & E14 Supplement on treatment of Agency Workers is inconsistent with the High court decision in Thorn Baker. No changes will be made to this guidance following the granting of permission to HMRC to appeal to the Court of Appeal –pending the decision of the Court of Appeal

Employers should however follow the guidance above in dealing with these cases.

Please also note that the High Court ruling applies to agency workers only. Other short-term contract workers are unaffected and remain entitled to SSP.

Further information will be published on these pages following the outcome of the appeal and you should continue to check the "What's New" and “Stop Press” web pages for updates."