Judgement in the case of Commissioners for HMRC v Thorn Baker and others
In a judgement of the Court of Appeal on 27thJune 2007 HMRC's appeal from the decision of the High Court in the case of Commissioners for HMRC V Thorn Baker Limited and others) ("Thorn Baker") was dismissed.
This means that the High Court Decision given on 14 July 2006 that SSP is not payable to Agency workers whose contract with the agency is for a specified period of 3 months or less stands.
However, agencies should note that their workers can become entitled to Statutory Sick Pay if in a single contract:
- They work longer than the original period specified and the total period actually worked exceeds three months, OR
- 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
- The total length of the contracts is more than 13 weeks
- The total period actually worked becomes more than 13 weeks or
- The contracts are extended so that together they can run for more than 13 weeks.
HMRC, DWP and DTI will be considering the implications of the judgement and further information will be published on the website so you should continue to check the "What's New" and "Stop Press" web pages for updates.
Please note that for these purposes an 'agency worker' means a person who is supplied by an "employment business" to do work for another person under a contract or other arrangement between the employment business and that other person.
'Employment business' means the business of supplying people employed by them, to work in any capacity for, and under the control of, other people. Such a business may be an employment business whether or not it is carried on with a view to profit or together with any other business.
Please also note that the ruling applies to agency workers only. Other short-term contract workers are unaffected and remain entitled to SSP.
