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This is a freeview 'At a glance' guide to the rules determining entitlement to statutory pay for directors, casual/agency workers and certain other employment types. 

For these individuals, it is necessary to consider other factors around entitlement as well as which earnings should be used when calculating Average Weekly Earnings (AWE).  This applies across:

Directors

Depending on how and when they are paid determining AWE for directors can be complicated. The general rules are as follows:

How paid How to determine AWE

Under terms of director service contract or employment
contract i.e. a regular salary

As for any other employee
Paid by determination of director(s) (not formally voted)

Add together monies paid and other payments of earning
but use the date they were paid (rather than date of AGM) to
determine earnings in the relevant period

Paid both contractually and by formal vote

As for any other employee, but only include monies
voted by formal vote if the date of the vote falls
in the period

Paid only by formal vote As with any other employee, but substitute the dates
of the formal vote in place of normal paydays
Monies drawn in anticipation of a formal vote Don’t include these when working out AWE even
if NICs were deducted.

 

Casual employees and agency workers

If you deduct Pay-As-You-Earn (PAYE) tax and Class 1 National Insurance Contributions (NICs) from a casual worker’s or agency worker’s earnings (or would do if they were high enough) you must pay them SMP, SPP or SAP if they satisfy the qualifying conditions.

Agency workers can also still get SPP if you did not have work to offer them, or you offered work but they are unavailable due to sickness, injury, paid or parental leave.

The period for which SSP is payable depends on whether the employee has had three months of continuous employment with you:

Other types of employee

Special rules also apply to statutory payments made to other types of worker, including:

See the following HMRC notes for details:

Statutory Maternity Pay

Statutory Sick Pay

Statutory Paternity Pay

Statutory Adoption Pay


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