SPM190200 - Special cases - Casual, short-term, zero hour contracts and agency workers
SSP
An employee who satisfies the conditions, including part-time workers, employees on short/zero hours contracts and agency workers, may be entitled to SSP as long as they meet the qualifying conditions.
Casual, short term and zero hour contracts
The period for which SSP is due depends on whether or not the employee has had 3 months’ continuous employment.
If the employee has at least 3 months’ continuous employment
The contract is treated as an employee with a permanent contract, unless their contract states otherwise.
Eligibility for SSP continues for the entire period of incapacity for work unless either:
· the employee is given written notice that their contract has come to an end
· eligibility to SSP ends for another reason
If the employee has not had 3 months’ continuous employment
Eligibility for SSP continues until the end of any period the employee had agreed to work.
Agency workers
An agency worker is a person who is engaged and paid by one party (normally an employment agency) for work done for a third party, the employment provider (normally the agency’s client).
Status
For SSP purposes a person's status is determined under the provisions of the Social Security Categorisation of Earners’ Regulations 1978 /Social Security (Categorisation of Earners) Regulations (Northern Ireland) 1978 ("the Categorisation of Earners Regulations")
Agency workers do not normally have a contract of service or a contract for services with either the agency or their client. They are engaged under a 'sui generis contract', which means ’of its own kind - unique’.
If the employer is referred to as an agency but their workers are engaged under a contract of service they are not “agency workers” in this context but may be short contract employees.
Under regulation 2 of the Categorisation of Earners’ Regulations, agency workers are deemed to be employed in employed earners employment (that is, as employees) for NICs purposes. Class 1 NICs are payable on their earnings, and the agency is the liable secondary contributor.
If the agency does not accept Class 1 NICs liability, or the exact status is not clear, this issue must be settled before SSP liability can be determined - the status may affect whether SSP is payable.
Under the provisions of regulation 16 of the SSP (General) Regulations, a worker treated as an employee under the Categorisation of Earners Regulations is deemed to be an employee and have a “contract of service” - the deemed contract - for the purposes of entitlement to SSP
Agency workers with overarching contracts which continue between assignments are, subject to them being employed earners and meeting the qualifying conditions, entitled to SSP for the entire period of incapacity until their contract ends (for reasons other than avoiding liability for SSP) or entitlement to SSP ends for another reason as detailed on the SSP1 form.
Agency workers whose contract does not continue between assignments are subject to them being employed earners and meeting the qualifying conditions entitled to SSP for the entire period of incapacity for work until the assignment ends (for reasons other than avoiding liability for SSP) or entitlement to SSP ends for another reason as detailed on the SSP1 form.
SMP/SAP
Any employee can satisfy the conditions for entitlement to SMP/SAP.
Agency workers, who are deemed to be employees under regulations, and short contract employees may be entitled to SMP when they are not available for work due to their pregnancy and the birth of their baby. See SPM250000.
Agency workers are treated as employees for SAP purposes and may be entitled to SAP if they are not available for work because a child:
- has been placed with them for adoption under UK law, or
- entered the UK to live with them following adoption abroad.