The average number of sick days taken by UK employees has increased to 7.8 per year, the highest level in over a decade. This increase is troubling, particularly given the pre-pandemic average of 5.8 days. As an employer, you must be well-versed in your responsibilities when it comes to managing sick leave in the UK. You must understand your duties for sick leave, particularly the complexities of statutory sick pay (SSP). This knowledge will assist you in ensuring that you meet legal standards and that your employees receive the necessary support during their absence. This article is intended to help you negotiate the complexity of sick leave in the UK, from establishing when staff are eligible for SSP to comprehending the payment procedure and knowing what to do when SSP entitlement expires.
What is Sick Leave in the UK?
In the United Kingdom, sick leave is when an employee cannot work due to illness and is eligible for government-mandated statutory sick pay (SSP). SSP is a legal requirement that businesses provide financial assistance to eligible employees who are too unwell to work. This clause applies to part-time and fixed-term contract workers who have been absent for at least four consecutive working days, with a maximum of 28 weeks.
It is vital to note that self-employed individuals are not eligible for SSP. The goal of SSP is to provide some amount of income security for employees who become ill during their recovery period, allowing them to focus on getting better without the extra stress of financial hardship.
How Much is Statutory Sick Pay in the UK?
The UK’s statutory sick pay (SSP) rate has been set at £116.75 per week for the 2024/25 tax year, up from £109.70 the previous year (2023/24). Employers are legally required to pay at least this amount to eligible employees on sick leave. SSP payments are usually made on a weekly or monthly basis, depending on the employer’s normal pay schedule.
Employers must ensure that SSP payments are properly incorporated into employees’ payslips, including with the relevant deductions for tax and national insurance obligations. Employers must stay up to speed on current SSP rates and ensure that all payments match the minimal legal standards, otherwise they risk violating employment regulations. Understanding how much SSP to pay and when to pay it is critical for companies managing sick leave in the UK.
Who’s Entitled to Claim Sick Leave in the UK?
People who work part-time or on fixed-term contracts in the UK can get Statutory Sick Pay (SSP) if they meet certain government requirements. To get SSP, an employee must first show that they are sick and can’t work. Employees can self-certify, which means they can report being sick without a doctor’s note, for illnesses that last up to seven days. To keep getting SSP, though, you need a medical certificate from a doctor if you’re sick for more than seven days.
When employees need to report being absent, they are also expected to follow their company’s rules. This could mean telling their boss within a certain amount of time or giving HR the right paperwork. If you don’t follow these steps, your SSP funds could be delayed or denied.
Who Pays for Sick Leave in the UK?
The Statutory Sick Pay (General) Regulations 1982 say that it is the employer’s job to make sure that qualified workers get SSP. SSP is not a benefit paid for by the government. Instead, it is paid for by the employer directly through the worker’s normal paycheck. Employers must make sure that SSP payments are included in their workers’ normal weekly or monthly payslips, along with their regular wages. Employers are also required to take out the appropriate tax and National Insurance contributions from these payments.
When certain conditions are met, companies do not have to pay SSP. This means that if a worker makes less than £123 a week on average, they can’t get SSP. Also, SSP is not needed if the employee is absent for three days or less and the absence has nothing to do with COVID-19. Other exceptions include not telling the boss about the leave as required by company policy, not having the right medical proof or the employee has already used up their 28-week SSP entitlement.
When Does Statutory Sick Pay Officially Start?
In the UK, an employee starts getting Statutory Sick Pay (SSP) on the fourth day in a row that they miss work. On the fourth day, this is called the first “qualifying day” for SSP status. The first three days of leave are called “waiting days,” and employees don’t get SSP during those days unless they’ve already gotten it in the last eight weeks. There may be times when the waiting period is not needed.
Legally, employers don’t have to pay SSP for absences shorter than three days. However, some companies choose to offer sick pay from the first day of absence as part of their hiring practices. If your company has this kind of policy, it’s important to spell out the rules in the employee handbook or contract so that no one gets confused. If an employee is sick for more than three days, they should start getting SSP payments on the fourth day and keep them going for up to 28 weeks, if they are still qualified.
What Happens When SSP Runs Out?
When an employee’s Statutory Sick Pay (SSP) runs out after 28 weeks, they have a few choices. You should tell the worker to apply for Employment and Support Allowance (ESA) or Universal Credit if your company doesn’t offer extra sick pay. Give them the SSP1 form at least seven days before their SSP stops to help with this. This form is very important for starting the process of applying for ESA or Universal Credit.
Start this process early, preferably three months before your SSP runs out. This gives the ESA application enough time to be handled. Remember that the contract between you and your employee remains even after SSP ends. The worker should keep you up to date on their health and any plans to go back to work. It is very important to keep information clear. It keeps everyone on the same page about the company’s sick policy and avoids confusion.
FAQs
No, companies can’t get SSP back from the government since April 6, 2014. Because of this change, companies now have to pay for SSP in full.
The most an employee can get in SSP is £3,269. People often call this amount “28 weeks of SSP,” but it’s better to think of it as a limit on how much money you can spend.
Set up a “return-to-work” meeting for when an employee comes back to work. This meeting makes sure they’re healthy enough to work, lets them talk about any ongoing health issues, and helps set up any help they might need for their return to work.
Pick EOR Services UK for the correct and on-time payroll
The reason we are the top EOR provider is that we have extensive senior management expertise in the HR and Payroll industries in the UK. With this unmatched experience, you can be sure that no staff is more qualified or better suited to provide the best possible personnel assistance and management. Pick EOR Services UK for the correct and on-time payroll