½Û×ÓÊÓƵ

Guarantee payments and suspension on medical grounds

Produced by Tolley in association with
Employment Tax
Guidance

Guarantee payments and suspension on medical grounds

Produced by Tolley in association with
Employment Tax
Guidance
imgtext

Guarantee payments

An employee is entitled to a guarantee payment for any workless day. This is a day throughout which he would normally be required to work but his employer does not provide him with work because:

  1. •

    it does not need as much work done of the kind the employee is employed to do (eg due to a lack of orders)

  2. •

    something happens which affects the work he is required to do (eg a threatened power cut)

ERA 1996, s 28

A ‘day’ is the period from midnight to midnight except where a period of work extends over midnight into the next day, in which case the work is treated as falling wholly within the day (from midnight to midnight) in which the majority of work was done.

In general, the right to a guarantee payment only arises after an employee has been continuously employed for one-month ending with the day before the workless day. An employee is not entitled to a guarantee payment where:

  1. •

    the failure to provide

Continue reading
To read the full Guidance note, register for a free trial of Tolley+â„¢
Sarah Bradford
Sarah Bradford

Director at Writetax Ltd


Sarah Bradford BA(Hons), ACA, CTA (Fellow) is the director of Writetax Ltd, a company providing tax technical writing services on tax and National Insurance, and also of its sister company, Writetax Consultancy Services Ltd. Sarah writes widely on tax and National Insurance and is the author of several books.

Powered by
  • 16 Aug 2023 11:30

Popular Articles

Definition of a close company

Definition of a close companyThe detailed definition of a close company is set out below, but in summary the rules are targeted at those companies where the owners can manipulate the activities of the company to influence their own tax position. Therefore, broadly speaking, in most cases an

14 Jul 2020 11:24 | Produced by Tolley Read more Read more

Class 1 v Class 1A

Class 1 v Class 1AClass 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met

Read more Read more

Payments on account (POA)

Payments on account (POA)This guidance note provides and overview of the payments on account regime (POA). More in depth commentary can be found in De Voil Indirect Tax Service V5.110.What are payments on account?VAT registered businesses with an annual VAT liability of more than £2.3m are required

14 Jul 2020 12:52 | Produced by Tolley Read more Read more