The Jobseeker’s Allowance Regulations 2013

Earnings of employed earners

58.—(1) Subject to paragraphs (2) and (4), “earnings” means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes—

(a)any bonus or commission;

(b)any compensation payment;

(c)any holiday pay except any payable more than four weeks after the termination or interruption of employment but this exception does not apply to a person who is, or would be, prevented from being entitled to a jobseeker’s allowance by section 14 of the Act (trade disputes);

(d)any payment by way of a retainer;

(e)any payment made by the claimant’s employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the claimant’s employer in respect of—

(i)travelling expenses incurred by the claimant between their home and place of employment;

(ii)expenses incurred by the claimant under arrangements made for the care of a member of their family owing to the claimant’s absence from home;

(f)any payment or award of compensation made under section 112(4), 113, 117(3)(a), 128, 131 or 132 of the Employment Rights Act 1996 (the remedies: orders and compensation, the orders, enforcement of order and compensation, interim relief)(1);

(g)any payment made or remuneration paid under section 28, 34, 64, 68 or 70 of the Employment Rights Act 1996 (right to guarantee payments, remuneration on suspension on medical or maternity grounds, complaints to employment tribunals)(2);

(h)any award of compensation made under section 156, 161 to 166, 189 or 192 of the Trade Union and Labour Relations (Consolidation) Act 1992 (compensation for unfair dismissal or redundancy on grounds of involvement in trade union activities, and protective awards)(3);

(i)the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person’s earnings in accordance with Part 5 of Schedule 3 to the Social Security (Contributions) Regulations 2001.

(2) “Earnings” does not include—

(a)subject to paragraph (3), any payment in kind;

(b)any periodic sum paid to a claimant on account of the termination of their employment by reason of redundancy;

(c)any remuneration paid by or on behalf of an employer to the claimant in respect of a period throughout which the claimant is on maternity leave, paternity leave or adoption leave or is absent from work because they are ill;

(d)any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;

(e)any occupational pension;

(f)any redundancy payment within the meaning of section 135(1) of the Employment Rights Act 1996;

(g)any lump sum payment made under the Iron and Steel Re-adaptation Benefits Scheme(4);

(h)any payment in respect of expenses arising out of the claimant’s participation as a service user.

(3) Paragraph (2)(a) does not apply in respect of any non-cash voucher referred to in paragraph (1)(i).

(4) In this regulation, “compensation payment” means any payment made in respect of the termination of employment other than—

(a)any remuneration or emolument (whether in money or in kind) which accrued in the period before the termination;

(b)any holiday pay;

(c)any payment specified in paragraphs (1)(f), (g), or (h) or (2);

(d)any refund of contributions to which the person was entitled under an occupational pension scheme.