40Case Management Activity Agreements—self‑employment

#### 40 Case Management Activity Agreements—self‑employment Prior receipt of allowance and commercial viability of self‑employment (1) A Case Management Activity Agreement must not require a person to undertake as an activity any development of self‑employment unless: (a) at all times during the 6 months immediately preceding the undertaking of the activity, the person has been, or will have been, receiving either of the following: (ii) a newstart allowance under the Social Security Act 1991; (iii) a youth training allowance under the Student and Youth Assistance Act 1973; and (b) the Employment Secretary is satisfied that the activity: (i) will be commercially viable 12 months after the person begins the activity; and (ii) is likely to provide the person with sustainable full‑time employment that will provide the person with a level of income at least equivalent to the person’s maximum basic rate. Maximum basic rate (2) For the purposes of subparagraph (1)(b)(ii), a person’s maximum basic rate is: (a) if the person had been receiving newstart allowance and is under 18—the person’s maximum basic rate worked out under Module B of Benefit Rate Calculator A (within the meaning of the Social Security Act 1991); or (b) if the person had been receiving newstart allowance and is 18 or over—the person’s maximum basic rate worked out under Module B of Benefit Rate Calculator B (within the meaning of the Social Security Act 1991); or (c) if the person had been receiving youth training allowance—the person’s maximum basic rate worked out under Module B of Schedule 1 to the Student and Youth Assistance Act 1973. Other conditions (3) A Case Management Activity Agreement must not require a person to undertake as an activity any development of self‑employment if: (a) the person is to undertake the activity for more than 12 months; or (b) subject to subsection (4), the person has previously been subject to a requirement under: (i) that agreement; or (ii) any other Case Management Activity Agreement; or (iii) a Job Search Activity Agreement; or (iv) a Newstart Activity Agreement; or (v) a Youth Training Activity Agreement; to undertake the same activity or a similar activity; or (c) at any time during the 6 months immediately preceding the time at which the activity is to start, the person has been subject to a requirement under: (i) that agreement; or (ii) any other Case Management Activity Agreement; or (iii) a Job Search Activity Agreement; or (iv) a Newstart Activity Agreement; or (v) a Youth Training Activity Agreement; to undertake as an activity other development of self‑employment. Special circumstances (4) Paragraph (3)(b) does not apply if the Employment Secretary determines in writing that there are special circumstances that justify inclusion of the activity in the Case Management Activity Agreement. Activities to which section does not apply (5) This section does not apply to an activity to which a paragraph of subsection 39(1) other than paragraph 39(1)(f) or (g) applies. Definitions (6) In this section: > Job Search Activity Agreement has the same meaning as in the Social Security Act 1991 as in force immediately before 20 September 1996. > Newstart Activity Agreement has the same meaning as in the Social Security Act 1991. > Youth Training Activity Agreement has the same meaning as in Part 8 of the Student and Youth Assistance Act 1973.