Illness Incapacity & Maternity
Sick pay, statutory sick pay is provided for by the Social Security Contributions and Benefits NI Act, 1992 as amended. Payments are made by the employer. Employers need not operate statutory sick pay if there is an occupational sick pay scheme giving higher benefits. Where the occupational scheme gives lower benefit, the employer must pay the difference.
Employees under 65 who earn more than the lower earning than it’s entitled to statutory sick pay. The benefit is currently £70.05 in 2006 without addition. Statutory sick pay does not arise until the claimant is incapable of work for four successive days. It may not be paid for more than 28 weeks.
The claim can be backdated for up to a month if there is good cause for the employee to fail to advise his employer of the illness and for longer periods under certain circumstances.
An employee may appeal an employer’s decision in relation to entitlement. An opinion may be obtained from HMRC in the first instance. It can be appealed further to the tax appeal commissioners.
Formerly, prior to 1994 employers reimbursed 80 percent of sick payment. After that date almost — the liability falls almost entirely on the employer.
Incapacity benefit provided for the Incapacity for Work NI Order, 1994 as amended. The claimant must be incapable of work or deemed incapable for at least four or more days. They must satisfy the requisite national insurance contribution. A person may be deemed incapable of work through the own occupation test or personal capability assessment.
The own occupation test considers whether the person is capable of undertaking the work they normally undertake. This applies during the first 196 days. The test is satisfied from the 21 weeks before the incapacity, they worked at least 8 weeks for 16 hours a week out at least one occupation. Where this is not the case, incapacity for work is determined by a personal capability assessment from the outset rather than after 28 weeks.
Personal capability looks at capacity generally valid in relation to a particular type of work. Regulations provide activities and claimants are awarded depending on the degree of relief which claimants have with the activity concerned. Activities include physical and mental activities.
Claimants must pass tests based with uncertain points from the physical or mental activities list. Questionnaires are required and a medical attendance examination may be necessary.
Persons may not be subject to the above tests in certain circumstances such as where they are qualified for on the basis of severe physical or mental conditions.
Claimants must have paid class 1 or class 2 contributions and at least one of the last three complete tax years before the claim on earnings with at least 25 times the lower earning limit, claimant must have paid or been credited with contributions equal to 50 times lower earnings than in each of the preceding two tax years.
Certain persons are exempted from the above requirement such as young persons who are incapable of building up the contribution.
Incapacity benefit is at a low rate for the first 28 weeks (£59.20.) After 28 weeks, it increases to higher rate (£70.05 or £78 for those over pension age.) After a further 28 weeks, long-term incapacity benefit (£78.50) for all persons apply. There is an addition for adult dependants, persons who are under 35 when incapacity commences receive an additional benefit of £16.50. This reduces to £8.25 for those between 35 and 44.
Claimants who have occupation or pension schemes from more than £85 a week suffer a reduction of 50 percent for each excess pound. There are similar acceptance
Incapacity benefit does not apply to persons over 60, for women at 65, for men. The claim is payable from the claim date and could be backdated for up to three months subject to certain conditions..
There is a provision for appeal against the decision to a tribunal and on a point of law to a social security commissioner.
Persons on incapacity benefit may receive other payments such as income support and tax credits proposed to be restructured in 2008 with abolition of income support, it is proposed that employment support allowance to be paid for an initial period with access to a high rate other than for the severely disabled depending on work-focused interviews and engaging in other activities such as pathway to work schemes.
Maternity benefits, maternity benefit was consolidated in the Social Security Contributions and Benefits NI Order, 1992 as amended.
A woman is entitled to statutory maternity pay if she has been in continuous employment for 26 weeks ending in the 15th week before expected childbirth. She must have an average gross earnings of £84 per week. At least 24 and 8 days’ notice of taking the leave must be given.
Statutory maternity pay is paid to full and part-time workers for 18 works from the 11th week before the due date. It comprises 90 percent of earnings for the first six weeks and fixed sum of £108.85 for the following 20 weeks.
Maternity allowance is payable to those who do not qualify for statutory maternity pay, who have been in employment at least 28, six of the preceding 52 weeks before the 14th week before confinement.
The claimants must have earnings at least £30 a week for 13 weeks. The allowance is £108.85 per week or 90 percent of average earnings if lower, maternity allowance is payable for 26 weeks. The claims may be backdated for up to three months.
There is an equivalent benefit available for persons with adopted child. It is payable for 26 weeks. Average earnings must be at least £84 per week. Rates are similar to maternity allowance.
Statutory maternity pay is paid by employers for up to two weeks where a person has been employed for 26 weeks.