Part 1: Secondary Class 1 Contributions Freeports Section 2: Freeport conditions
Section 2(1) sets out the conditions that must be met to qualify for the relief under section 1.
	Section 2(1)(a) sets out that the start date for the Freeport employment must be between 6 April 2022 and 5 April 2026.
	Section 2(1)(b) provides that the relief applies for three years per earner starting from the first day of employment subject to subsection (6).
	Section 2(1)(c) specifies that relief can only be claimed for contributions paid in respect of tax weeks in a qualifying period, and that the whole of a tax week must be within that period. The qualifying period is defined at subsection (3).
	Section 2(1)(d) states that, at the time the qualifying period begins, a Freeport employer must reasonably expect that the earner will spend 60% or more of their employed time (defined by subsection 4(a)) in a single Freeport Tax Site in which the Freeport employer must also have business premises.
	Section 2(2) stipulates that an earner cannot have been employed by the Freeport employer or a person connected with the employer in the 24 months prior to the employment. Connected person is defined by reference to section 993 of the Income Tax Act 2007.
	Section 2(3)(a) specifies that the qualifying period begins with the start of the employment, or a substantial change in the earner’s circumstances. Subsection (3)(b) specifies that the qualifying period ends with either the end of the employment, a substantial change in the earner’s working arrangements or the relevant end date of the relief. The effect of subsection (3) is that an employer is required to make an assessment at the start of the employment and maintain that assessment until there is a substantial change in the earner’s working arrangements at which point an employer must reassess. This assessment must be made each time there is a substantial change in the earner’s working arrangements.
	Section 2(4)(a) defines employed time as the time that an employee is expected to provide services to the employer, and that includes periods of leave.
	Section 2(4)(b) has the effect of disregarding periods of leave for the 60% test.
	Section 2(4)(c) clarifies that it does not matter if the earner provides services under multiple contracts provided that the employment does not cease.
	Section 2(4)(d) specifies that the employment also ceases to qualify for this relief when the employer’s expectation that the earner spends 60% of their employed time in the Freeport ceases to be reasonable. Note, this does not preclude the employment from qualifying for this relief in future if there is a substantial change in the earner’s working arrangements.
	Section 2(5) has the effect of ensuring that where the employer and the secondary contributor are not the same person, then the secondary contributor, instead of the employer, must meet the condition at subsection (1)(d) (the assessment of employed time in the Freeport, see paragraph 38). Both the employer and secondary contributor need to meet the condition at subsection (2) (connected person rule, see paragraph 39).
	Section 2(6) provides that the latest date that earnings may qualify for this relief is the earlier of:
The last day of the three-year period beginning with the day after the date specified in subsection (1)(a)(ii); and
5 April 2031.
						This allows for the full qualifying period to be utilised by employers if this relief is extended beyond 5 April 2026, but has the effect of not extending the qualifying period beyond 5 April 2031.