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The Court of Appeal has dismissed HMRC's appeal against the decision of the High Court in a case concerning agency workers' entitlement to statutory sick pay (SSP).

In Commissioners for HMRC V Thorn Baker Limited and others ("Thorn Baker"), the decision of the High Court (given on 14 July 2006) that SSP is not payable to agency workers whose contract with the agency is for a specified period of three months or less, still stands. However, in response to the Court of Appeal decision, HMRC state that agencies should note that their workers can become entitled to SSP if, in a single contract:

• they work longer than the original period specified and the total period actually worked exceeds three months, or
• the contract is extended for more than three months.

Agency workers whose contracts are for three months or less can also become entitled to SSP if two or more such contracts with the same agency are separated by eight weeks or less, (56 days) and

• the total length of the contracts is more than 13 weeks;
• the total period actually worked becomes more than 13 weeks; or
• the contracts are extended so that together they can run for more than 13 weeks.

The ruling applies to agency workers only. Other short-term contract workers are unaffected and remain entitled to SSP.

HMRC, the Department for Work and Pensions (DWP) and the Department for Business, Enterprise and Regulatory Reform (formerly the Department of Trade and Industry (DTI)) will be considering the implications of the judgement and further information will be published in due course.

Link

HMRC: Judgement in the case of Commissioners for HMRC v Thorn Baker and others