Changes to Statutory Sick Pay: an employer’s guide

Statutory Sick Pay (SSP) is set to change, following a series of consultations between the Government and key stakeholders. The new rules include making it a day-one right for employees to receive SSP. Our employment solicitors explain more.

Statutory Sick Pay: what’s changing?

Following the consultation, the Government has proposed two new rules for SSP in England and Wales:

• Removal of the current three ‘qualifying days’ that employees have to wait before receiving SSP.
• Scrapping the earnings threshold; currently, employees must earn at least £123 per week to receive SSP.

The Minister for Employment Rights, Justin Madders, explained that waiting until the fourth day of sickness before SSP is paid means that many people are forced to make the difficult choice between going to work when they are unwell or receiving no income.

What does this mean for employers?

These new rules for Statutory Sick Pay are no doubt good news for employees, however, many employers have already raised concerns about how it may cost their business. Some business owners are concerned that the day-one right to be paid SSP will lead to reduced productivity, increased workplace absences, and an impact on staff well-being as their workforce struggles to provide cover for illness.

What do I need to do? Checklist for employers

The new rules are not expected to take effect until Autumn 2025, but it is important for employers to get ahead and revise their policies. Early preparation will be critical for compliance, managing costs, and minimising disruption.

To prepare for the changes to SSP, employers should review their sickness and absence policies. A robust sickness policy can include a requirement for staff to attend a return-to-work interview to help managers understand the reasons behind absences and identify any need for additional support or reasonable adjustments.

When writing or reviewing any policy, it is a good idea to seek advice from an employment lawyer to ensure it is fair and non-discriminatory, bearing in mind a rise in disability-related absences, including time off work for mental health illnesses.

In addition to revising your policies and procedures, it is important to share the changes to SSP with all staff and provide training for managers where needed. By demonstrating a serious approach to absence management, you create a work environment where it’s not easy for individuals to ‘pull a sickie’ when they simply want a day off.

Dealing with sickness absence

Dealing with suspected sick leave misuse requires a balanced and thorough approach. It is wise for employers to conduct a proper investigation and engage in open communication with the employee involved. Handling these incidents with care can foster a culture of trust, transparency, and accountability within your organisation.

If you have taken these steps and still find any employee’s behaviour unacceptable and are considering disciplinary action, it is wise to seek legal advice before taking further steps. An employment lawyer can help you navigate the situation appropriately, considering the specific circumstances and potential legal implications.

Watch this space

The Government has said that there are no plans to make further changes; however, other issues raised in the consultation included:

• Extending SSP to the self-employed.
• Extending SSP to all workers, not just those classified as employees.
• Calculating SSP so it is calculated on an hourly rate, rather than a daily basis.
• Extending the duration of SSP from 28 weeks to 52 weeks.

We will update you if any more comes from these suggestions.

Contact our employment law solicitors

For advice on managing sickness absence, your capability procedures, updating your policies, or any other employment law-related matter, get in touch. Call our employment lawyers on 0117 325 2929 or fill out this form, and we will be in touch.