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 employers 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.