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HMRC internal manual

National Insurance Manual

NIM07005 - Class 1 NICs: Payments made under employment legislation: Guarantee payments: General

Sections 28 and 34 Employment Rights Act 1996

Subject to certain conditions, if throughout a day during which an employee is requiredto work under their contract of employment, the employer does not provide them with anywork due to:

  • a decrease in the requirements of the employer’s business for the type of work the employee is employed to do; or
  • any other reason which affects the normal working of the business in relation to this type of work

the employee is entitled to be paid a “guarantee payment” by their employer.

For details of the NICs treatment of a guarantee payment, see NIM07006.