Age discrimination and PAYE

The Employment Equality (Age) Regulations 2006 become law from 1 October 2006 and this has far reaching implications. HMRC have published some guidance which looks at the implication of the legislation on payment of some statutory payments which employers make. Payments affected include statutory sick pay (SSP), maternity pay and paternity pay.

From 1 October 2006 it will be necessary to pay sick pay to those employees who are under 16 or over retirement age. SSP will be due as long as the employee satisfies all the other payment conditions such as the length of time they are off sick (known as a period of incapacity for work) and level of earnings. HMRC guidance clarifies the treatment of the situation where the employee is already sick before 1 October and gives examples.

Statutory maternity and paternity pay will also be payable to employees under the age of 16 as long as they satisfy the level of earnings and length of service requirements.

HMRC have published some guidance on the impact of these changes from a payroll perspective which is available from the link below.

Internet link: HMRC guidance