THORN BAKER SUCCESSFULLY TAKES ON GOVERNMENT IN SSP CASE
For approaching four years, Thorn Baker has been contesting a case with the Revenue two temporary agency workers who had claimed statutory sick pay (SSP) from the firm.
Two years ago the case was referred to the General Commissioners of Income Tax to make a ruling. HM Revenue & Customs argued that the two workers involved were entitled to SSP under the Fixed Term Employees Prevention of Less Favourable Treatment Regulation 2002, an amendment to the primary legislation contained within the Social Security Contributions and Benefits Act 1992.
Thorn Baker lodged an appeal claiming that, because those involved had worked for them for less than three months, they were covered by an exemption in the Act. The exemption, contained in Regulation 19 (1), specifies that the regulations do not affect employment when it is under a fixed term contract and the employee is an agency worker.
The General Commissioner upheld Thorn Baker’s appeal which meant that the firm was not liable for the SSP for the two people involved.
HM Revenue & Customs took the case to the High Court and to the Court of Appeal but both times they were unsuccessful.
“This is an important test case that has major implications, particularly for temporary recruitment firms like our own but it also covers apprentices and those on Government Training schemes,” said John Robinson, director of Thorn Baker.
“As a firm, we have around 1,500 temporary staff contracted out to clients each week but only a handful are long term workers and who are therefore entitled to SSP along with maternity and paternity pay according to current legislation, as we have succeeded in proving,” he added.
“The legislation concerning agency workers has always bit little confusing and somewhat contradictory, but we have succeeded clearing up any misunderstanding and getting a final ruling on the issue.”
Thorn Baker has a total of eight offices located in Nottingham, Mansfield, Chesterfield, Sheffield, Birmingham, Leeds, Manchester and Bristol.
For further information contact:
John Robinson, Thorn Baker, tel: 0115 947 2005
Monday 23rd July 2007
