NIM07052 - Class 1 NICs: Payments made under employment legislation: Redundancy: Protective awards: NICs treatment
Sections 188-192 Trade Union and Labour Relations (Consolidation) Act 1992
Section 112(3)(c) Social Security Contributions & Benefits 1992
Regulation 2(b) Social Security (Contributions) (Employment Protection) Regulations1977
Under the above regulation, an amount payable by way of remuneration under a protectiveaward is:
- treated as earnings payable by the person liable to make such payment to the person entitled to receive it; and
- to be so payable for the period specified by the employment tribunal.
The gross amount of the protective award should be taken into account when assessingthe NICs liability.
For details about:
- what a protective award is, see NIM07050
- the earnings period to use in calculating the amount of Class 1 NICs, see NIM07060.