PayPerShop Forum

Hi all

Wonder if you can help. We have two employees, both on SSP whose contracts have been terminated. One employee has produced a certificate dated 5 March 2008 for three weeks. Contract was terminated on 7 March and I am to pay a month's salary in lieu of notice. My question is, I pay SSP until 7 March, but how do I treat the remainder? Under contract, employee is paid SSP only. Do I pay SSP and offset against month's salary or do I pay SSP on top? I am not sure of the other employee's circumstances as yet.

Thanks in advance for your help.

Kind Regards from a very wet and windy Kings Lynn!

Hi,
I think that if the person's last day is 7th March, you can't pay SSP after that. Is it definitely pay in lieu of notice, i.e. contract terminated on 7th March without notice, therefore compensatory payment of 1 month being made? If so, I don't think you can continue paying SSP.
If it is genuine notice, (not 'in lieu'), the leaving date will be 7th April and you could pay SSP up til then. I'm pretty sure that's the correct interpretation!
Alison

That is quite right Alison, SSP is only payable to employees while they are employed under a contract of service, or in an office, i.e. a director. (Section 163 of the Social Security Contributions and Benefits Act 1993). There is, therefore, no requirement to pay SSP beyond the date on which the contract of employment ends, whether that occurs because the employee resigns or is dismissed. If 7 March was not just the last working day but also the termination date, no SSP is due from 8 March onwards.

The only exception is where an employee is dismissed in order to avoid payment of SSP, in which case, SSP is due until (usually) the date on which the contract would otherwise have ended. (Regulation 4 of the Statutory Sick Pay (General) Regulations 1982)

Procedurally, you need to issue form SSP1, ticking box B "Your contract of employment has ended".

Thanks guys. I appreciate your help.

Paula