Significant changes to Statutory Sick Pay (SSP) are coming into force under the Employment Rights Bill, and they will have a direct impact on employers — particularly SMEs. While the intention is to provide greater protection and financial security for workers, these changes are likely to increase sickness absence levels and, in turn, costs for businesses.
Now is the time for employers to understand what’s changing and put the right measures in place.
What’s Changing?
Two of the biggest changes to Statutory Sick Pay are:
- Removal of Waiting Days
Under the new rules, SSP will be payable from day one of sickness absence. The current waiting days, where SSP only becomes payable after several days off, will no longer apply. - Changes to the Lower Earnings Limit
The lower earnings limit is being adjusted so that more employees will qualify for SSP, including lower-paid and part-time workers who may previously have fallen outside eligibility.
Together, these changes mean that more employees will be entitled to SSP, and they will receive it sooner.
What This Means for Employers
While these reforms aim to support employees, there is a clear expectation that:
- Sickness absence levels may rise
- SSP costs for employers are likely to increase
- Short-term and sporadic absences may become more common
For small employers in particular, these costs can add up quickly. Budgeting for increased SSP payments is essential, especially if you operate with tight margins or a small workforce where absences have a bigger operational impact.
The Importance of Robust Sickness Absence Management
With SSP payable from day one, effective sickness absence management has never been more important. Employers should ensure they have:
- A clear and up-to-date sickness absence policy
- Consistent processes for reporting and recording sickness
- Defined triggers for reviewing absence levels
A well-written policy sets expectations, ensures fairness and consistency, and gives you a framework to manage absence confidently.
Why Return-to-Work Interviews Are a Must
Return-to-work interviews should be standard practice following any period of sickness absence — even short ones.
They help to:
- Confirm the reason for absence
- Identify any underlying health or workplace issues
- Deter unnecessary or casual absence
- Demonstrate that absence is monitored and managed
These conversations don’t need to be confrontational, but they should be structured, documented, and consistent. Over time, they can significantly reduce absence levels.
Managing Frequent or Persistent Sickness Absence
If you have a member of staff who is frequently off sick, it’s important to act early and follow a fair, legally compliant process. This can include:
- Reviewing absence patterns
- Holding formal absence review meetings
- Considering medical evidence or occupational health input
- Making reasonable adjustments where appropriate
Handled correctly, this protects both the business and the employee. Handled incorrectly, it can expose employers to risk.
If you’re unsure how to manage a particular situation, getting advice early can save time, stress, and potential legal issues later.
How We Can Help
If you’re dealing with sickness absence concerns, or simply want to prepare for the new SSP rules, we can help.
We can:
- Provide practical, tailored advice for managing frequent sickness absence
- Supply all the necessary forms and template letters
- Support you through absence reviews and return-to-work processes
- Update your existing sickness and absence policies to ensure they are compliant with the new legislation
Being proactive now will put you in a much stronger position as these changes take effect.
If you’d like support or want to review your current policies, get in touch — we’re here to guide you through it.