The Statutory Sick Pay Act 1991 (Consequential) Regulations 1991

Explanatory Note

(This note is not part of the Regulations)

This instrument contains only Regulations made consequential upon the Statutory Sick Pay Act 1991 (“the 1991 Act”). As it is made before the end of the period of 6 months beginning with the coming into force of that enactment (14th February 1991) it is exempted by section 61(5) of the Social Security Act 1986 (c. 50) (as amended by the Social Security Act 1989 Schedule 8, paragraph 12(3)) from reference to the Social Security Advisory Committee and has not been so referred.

The 1991 Act amends the Social Security and Housing Benefits Act 1982 so that the amount of statutory sick pay recoverable by employers is reduced from 10 per cent. to 80 per cent. except where small employers' relief applies.

Regulation 2 amends the Statutory Sick Pay (Compensation of Employers) and Miscellaneous Provisions Regulations 1983 to entitle an employer to recover this reduced amount except where such relief applies and makes provision for rounding up fractions of a penny.

Regulation 3 amends regulation 2 of the Social Security (Recoupment) Regulations 1990 so that the sum of statutory sick pay recoverable from compensation payments by the Secretary of State under the provisions of the Social Security Act 1989 is limited to 80 per cent. of the payment the employer is liable to make.

Regulation 4 enables an employer to recover or to be repaid (as the case may be) any payments of statutory sick pay (together with the additional compensation) paid in respect of any day of incapacity for work before 6th April 1991.