How different employment types affect what you pay in Statutory Parental Bereavement Pay
Find out about the different rules that apply to employment types like agency workers, directors and educational workers when deciding entitlement to Statutory Parental Bereavement Pay.
Agency workers and casual (or short contract) employees
Agency workers
You can treat agency workers as employees for PAYE tax and Class 1 National Insurance contributions (NICs). You will have to pay them Statutory Parental Bereavement Pay if they satisfy the qualifying conditions and:
- you have to deduct PAYE tax and Class 1 NICs from the agency worker’s earnings
- you would deduct PAYE tax and Class 1 NIC’s if their earnings were high enough
They can still get Statutory Parental Bereavement Pay if:
- you did not have work to offer them
- you offer work but the employee was unavailable
The employee could be unavailable due to:
- sickness
- injury
- maternity leave
- paternity leave
- adoption leave
- parental leave or paid holiday
Casual and short contract employees
A casual employee is usually someone who works for an employer:
- as and when they are required
- on a series of short contracts of employment with that person
If you have to deduct PAYE tax and Class 1 NICs from their earnings, you will have to pay them Statutory Parental Bereavement Pay if they satisfy all the qualifying conditions.
Agricultural workers
The Agricultural Wages Board in England was abolished on 1 October 2013.
From this date, agricultural workers in England who are not covered by the terms and conditions of the Agricultural Wages Board will be eligible for statutory payments if they meet the appropriate qualifying conditions.
Directors
Companies incorporated after 1 October 2009
There are new regulations for companies incorporated after 1 October 2009. These provide new articles of association for these companies and will:
- apply by default if other articles are not adopted
- allow its directors to determine a director’s remuneration
Directors can decide what and when to pay remuneration. There is no need for a resolution of the company’s shareholders at its Annual General Meeting. In such cases payment of director’s fees will be regarded as earnings for the purpose of entitlement to Statutory Parental Bereavement Pay on the date payment was made.
Companies incorporated before 1 October 2009
The previous standard articles, which apply in default, continue to apply. An ordinary resolution is required to determine director’s remuneration. The method of calculating director’s remuneration by an annual figure (after an ordinary resolution has been passed by shareholders) will apply to these companies. Any payments made in anticipation of the annual vote cannot be taken into account for calculating average weekly earnings.
Paid contractually
If the director is contractually paid a regular salary their average weekly earnings are calculated like any other employee.
Paid by a determination of the directors (not a formal vote)
To determine the total earnings during the relevant period, calculate the average weekly earnings by adding together:
- the monies paid
- any other payments of earnings
Use the date monies were paid instead of the date of the shareholders’ resolution at the AGM.
Paid both contractually and by formal vote
A director who is paid contractually may also be paid a bonus or fees by a formal vote. You must still calculate their average weekly earnings like any other employee. You should only include the monies voted by formal vote if the date of the vote falls in the relevant period.
Paid only by a formal vote
If the director is paid only by a formal vote calculate their average weekly earnings in the usual way. You must substitute the dates of the formal votes in place of the normal paydays. A formal vote usually takes place at the company’s AGM and is agreed in the company minutes.
Monies drawn in anticipation of a formal vote
Some directors may regularly draw money from the business in anticipation of a formal vote. Do not include this money when working out the director’s average weekly earnings, even if NICs were deducted at the time they were paid.
Employees with more than one employer
If your employee has more than one employer they can get Statutory Parental Bereavement Pay from each employer if they satisfy all the qualifying conditions. They can choose to take different time off from each employer.
Employees who have more than one job with you
Your employee could have more than one job with you.
If you add all the employee’s earnings together to work out Class 1 NICs:
- you would do the same to work out the employee’s average weekly earnings
- the employee can only get one lot of Statutory Parental Bereavement Pay - 2 weeks’ statutory pay which they can take together or seperately
If you work out Class 1 NICs separately on the employee’s earnings:
- you must work out their average weekly earnings separately
- the employee can then get more than one lot of Statutory Parental Bereavement Pay - 2 weeks statutory pay for each set of average weekly earnings
If employees can only get one payment of Statutory Parental Bereavement Pay from you, they should take the same time off from each job. If they do not, they will lose some of their statutory pay because they are working for you.
If they are entitled to more than one lot of Statutory Parental Bereavement Pay from you, they can choose to take different time off from each job. If they do this they will not lose their entitlement to Statutory Parental Bereavement Pay.
Employees who work abroad
Where your employee works for you outside the UK:
- from the latest start date for employment with you
- up to and including the Sunday of the relevant week
They can get Statutory Parental Bereavement Pay if:
- they continue to work for you until the date of death or stillbirth
- you are liable to pay Class 1 NICs on their earnings throughout the period (or would have been liable if their earnings had been high enough)
If you are not liable to pay Class 1 NICs, your employee may still be able to get Statutory Parental Bereavement Pay if they work for you within the EEA:
- from the latest start date for employment with you
- up to and including the Sunday of the relevant week
They must:
- continue to work for you until the date of death or stillbirth
- have worked for you in the relevant week
You must have been liable to pay Class 1 NICs on their earnings for that week.
For the period after the relevant week the employment can be in either the UK or European Economic Area (EEA).
The relevant week is the week, ending with a Saturday, immediately before the one in which the child died or was stillborn.
Mariners
Mariners can get Statutory Parental Bereavement Pay if you have a place of business in the UK and they are on a home-trade ship.
NHS employees
Some NHS employees have contracts that are split between strategic health authorities and NHS Trusts. This occurs as a result of NHS reorganisation.
These employees can choose to have all their earnings added together for working out average weekly earnings for Statutory Parental Bereavement Pay purposes.
Supply teachers, seasonal workers or other irregular employment
Generally the same rules apply as for agency workers. But supply teachers, seasonal workers or other irregular employees can be treated as having worked in the relevant week if they are:
- sick throughout the relevant week
- not required to work during that week
The relevant week is the week, ending with a Saturday, immediately before the one in which the child died or was stillborn.
This applies even if they do not resume work before commencing their bereavement absence.