Section 216: Provisions not applicable to lower-paid employments
850.Subsection (1) is the legislative statement of the new approach that is being made in the benefits code, reproducing the effect of section 167(1) of ICTA, although by a different route. The code applies to all employees (including office-holders) except that the provisions specified in subsection (4) do not apply to any employee in lower-paid employment who also meets one of conditions A or B.
851.Subsection (2) sets out condition A – that the employee is not a director.
852.Subsection (3) sets out condition B which applies to employees who are directors, and is satisfied if
they have no material interest in the company; and
either the employment is as a full-time working director; or
the company is non-profit making or is established for charitable purposes only.
853.These special rules for certain directors in condition B derive from section 167(1) and (5) of ICTA.
854.Subsection (4) lists the Chapters that do not apply to the lower-paid. These are the charging provisions that derive from Chapter 2 of Part 5 of ICTA.
855.Subsection (5) limits the meaning of “employee” in the Chapters listed in subsection (4) to exclude any employees satisfying the tests in subsection (1). It is new.
856.Subsection (6) provides signposts to provisions elsewhere that affect the operation of subsection (1).
