NIM07042 - Class 1 NICs: Payments made under employment legislation: Unfair dismissal: Pay under an order for the continuation of a contract of employment: NICs treatment
Sections 128-130 Employment Rights Act 1996
Sections 163-164 Trade Union and Labour Relations (Consolidation) Act 1992
Section 112(3)(b) Social Security Contributions and Benefits Act 1992
Regulation 2(b) Social Security (Contributions) (Employment Protection) Regulations1977
Under the above regulation an amount payable by way of pay under an order for thecontinuation of a contract of employment is:
- treated as earnings payable by the person liable to make such payment to the person entitled to receive it
- to be so payable for the period specified by the employment tribunal (ET).
The gross amount paid under an order for the continuation of a contract of employmentshould be taken into account in assessing the NICs liability.
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