The Employment Rights Bill: Statutory Sick Pay

Statutory Sick Pay (SSP) is a fundamental aspect of employee rights in the workplace, providing financial support to employees who are unable to work due to illness.

Under clauses 8 and 9 of the Employment Rights Bill (ERB), the Government intends to make changes to the payment of SSP by removing the lower earning limit (LEL) and the waiting period.

The Current SSP Framework

Under the current system, SSP is payable to eligible employees who are off work due to illness for four or more consecutive days (including non-working days). Employers must pay SSP for up to 28 weeks, with a standard weekly rate set by the Government. The rate is currently £116.75 and is expected to rise to £118.74 on 6 April 2025.

To be eligible for SSP, an employee must have average weekly earnings at or above the LEL, which is currently £123 per week.

Key changes to SSP under the Employment Rights Bill

The Government aims to modernise the SSP framework, making it more flexible and accessible for employees, while balancing employer responsibilities. The Government plans to:

• Remove the requirement to earn at or above the LEL, meaning that up to 1.3 million low-paid employees will be entitled to SSP. For employees earning below the LEL, their rate of SSP will be a percentage of their earnings or the flat rate, whichever is lower.
• Remove the waiting day so that all employees are eligible for SSP from the first day of sickness absence.

It is the Government’s view that these changes will ‘support all employees to take the time off they need to recover which will help prevent the spread of infectious diseases in the workplace, reduce the overall rate of sickness absence and deliver productivity benefits for business and the economy’.

Preparing for the changes

To ensure a smooth transition when the changes take effect, employers should:

1. Assess current sick pay and absence management policies to determine the changes that will be required.
2. Collaborate with payroll to plan for changes in SSP calculations.
3. Prepare to inform employees about the new rules once the Government has confirmed when the changes will take effect.

Comment

The upcoming changes to SSP are a significant development, aimed at creating a fairer system for employees and employers alike. While these changes may require adjustments to your processes, they also present an opportunity to enhance workplace policies and demonstrate your commitment to employee well-being. By preparing now, you can ensure a seamless transition and maintain compliance with the upcoming changes.

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