Does the upcoming change in Employers National Insurance contribution constitute a X2 change in law and therefore a Compensation Event

NEC3 and NEC4 Contracts
1

Does the upcoming change in Employers National Insurance contribution constitute a X2 change in law and therefore a Compensation Event ?

1 Like
2

The answer is dependent on when your contract was signed and executed as changes in the law under X2 are governed by the Contract Date. If the legislation is in force before your Contract Date then no it’s not a CE, but if it isn’t then it will be.

As far as I know the legislation that will make the NI increases legally binding on employers has not yet had Royal Assent and as such we don’t yet know what the date is that will be the boundary between CE / no CE.

If you’re already in contract then this doesn’t really matter as it will be a CE but if you’re tendering for work over the next few months you will need to keep an eye on this to make sure the contract you sign reflects how you priced.

5 Likes
3

Neil/Mark It became law on the 20th October 2021 when the Health and Social Care Levy Bill 2021-22 received Royal Assent and became the Health and Social Care Levy Act 2021.

2 Likes
4

Credit goes to Sean Acton for pointing this out to me :grin:

1 Like