Agency workers and SSP entitlement - High Court decision to be considered by the Court of Appeal

In a news item that we published in August 2006, we reported on the decision of the High Court in the case HMRC v Thorn Baker Ltd on 14 July 2006. The High Court ruled that agency workers on fixed term contracts of no more than three months were not entitled to Statutory Sick Pay (SSP).

HMRC has been granted permission to appeal the decision to the Court of Appeal and, as a consequence, has decided not at present to change the guidance given on SSP for agency workers in the E14 and E14(Supplement) Helpbooks.

In the meantime, HMRC is reminding agencies that the decision does not mean that, in all situations, short-term agency workers are not entitled to SSP. They 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, from the time at which the extension is agreed.

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 (56 days) or less, 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.

The High Court ruling applies to agency workers only. Other short-term contract workers are unaffected and remain entitled to SSP.

...UK Payroll News - Latest

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

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