Is Sick Pay a Legal Requirement? Everything You Need To Know
As an employer, it is important to know what you are required to do when your workers take a leave of absence. This article will cover who is eligible to be paid for sick pay, how much they are paid, and the legal requirements you must abide by.
Do employers have to pay for sick days?
Statutory Sick Pay (SSP) must be paid to employees when they are sick for more than 3 days in a row, including non-working days.
For instance, if an employee becomes ill on the Friday before they begin work, by Monday, 3 days have passed and the employer should begin paying statutory sick pay.
Employees with agency, casual and zero-hour contracts are still entitled to SSP if they meet the eligibility criteria. The weekly rate is £116.75 for up to 28 weeks.
After the first 7 consecutive days of absence, employers must request their employee’s fit note, which is a sick note from their doctor giving their medical opinion on their ability to work and how long their sickness absence may last.
As long as employees meet the eligibility criteria for sick pay, employers must honour their eligibility and pay their absent employees.
Sick pay entitlement
To be able to receive SSP, employees must:
- Have been sick for more than 3 days in a row
- Have an employment contract
- Have completed some work for their employer
- Earn an average of at least £123 per week, before tax
- Provide you with proof of illness when requested
However, they do not qualify if they:
- Have already received 28 weeks of SSP
- Are being paid for maternity reasons/off work for maternity-related issues 4 weeks before their baby is due
- Received Employment and Support Allowance within their first 12 weeks of starting or returning to work for you
If they are not eligible for sick pay or their SSP payments are ending, applying for Universal Credit or Employment and Support Allowance are alternative options that may be available to assist them. Your employees should fill out an SSP1 form if this is the case.
Additionally, you can offer Occupational Sick Pay. See below for more information.
What is enhanced sick pay?
In addition to SSP, Occupational Sick Pay (OSP) is an enhanced sick pay scheme that employers can add to employment contracts. As an employer, you may offer enhanced sick pay to employees who have been receiving SSP. This would provide additional financial support to them during illness.
Specific terms can vary depending on employer policies, but enhanced pay generally covers higher pay rates, longer durations of leave, and more flexible requirements for eligibility compared to the SSP minimum.
Unlike SSP, which is a statutory right granted when the government criteria is met, OSP is granted at the discretion of the employer.
Manager discretion in sick pay decisions
Although most businesses have a Statutory Sick Pay policy in place and OSP procedures, sometimes flexible decisions need to be made.
Some individuals may need additional sick pay support, which can lead to flexible sick pay terms that range outside of the standard policy. This may include:
- Extending enhanced sick pay if an employee has a long-term illness
- Granting enhanced sick pay to a new employee who doesn’t meet all the criteria for SSP yet
- Making adjustments for employees who are experiencing difficult or sensitive medical circumstances
These decisions can be made on a case-by-case basis, ensuring that employee well-being is at the forefront of decision-making. It can consolidate the fairness of your sick pay policies and procedures.
Is sick pay mandatory?
If an employee meets the above criteria, employers must pay for their sick leave. The minimum amount to pay per week is £116.75, but employers can write in their contracts that their employees receive more than this amount.
It is recommended that employers have written sick pay rules to always refer back to, and so that employees know their entitlements and obligations. If you already have a policy in place, it prevents unnecessary confusion and reduces the likelihood of employees frequently approaching HR or involving union representatives for clarification.
For an employer to grant enhanced sick pay – or OSP – you highlight your devotion to supporting employee health and well-being. It’s an opportunity to set a positive standard.
Trusted HR’s Services
If you need assistance creating an employee handbook, a sick pay policy, or general advice about Statutory Sick Pay, Trusted HR offers professional HR services that will help.
We provide a range of services across the UK, including:
- Managing Conduct
- Management and Leadership Development
Request a consultation to learn more about how our consultancy service can help your organisation succeed. Trusted HR offers a free, 45-minute, no-obligation consultation on any HR issue to help you get started.
