NIM28002 - Special Cases: Class 1 - Continental Shelf: Introduction

Section 120 of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)

Workers employed in connection with the exploitation of resources or the exploration of the sea bed and subsoil (eg, oil rig workers, divers) in any area designated under Continental Shelf Act 1964 (the UK Continental Shelf) , are like any other overseas workers subject to territorial limitations. Where an insured person works outside the UK he ceases to be “gainfully employed in GB” for contribution purposes. The result is that there may be no liability to pay Class 1 NICs.

There are special rules that apply to UK Continental Shelf Workers see NIM28003 onwards.

In the absence of these special rules, a person would cease to be compulsorily insured when they leave the UK. They would have to rely upon voluntary Class 2 or 3 NICs to maintain entitlement to the State Pension.