Employment Rights Bill - Statutory Sick Pay

The Employment Rights Bill plans to make changes to the employment law landscape. As more information is released, we’re going to be delving into the changes and explaining what they mean for employers. 

Speak to Croner’s employment law and HR experts now to understand what the bill means for you on 0808 501 6650 

What is the existing framework when looking into statutory sick pay (SSP)? 

In the UK, for an employee to be eligible for statutory sick pay, they need to have at least the average earning (or above) of the Lower Earning Limit (LEL). Which currently sits at £123 per week. If an employee is eligible to earn statutory sick pay, they will only be paid from the fourth day of absence. 

As it currently stands, 1.3 million individuals in the UK aren’t eligible for statutory sick pay, and no one is eligible for statutory sick pay if their absences are less than four days. As a result, this forces low paid employees to work while they aren’t well. In turn spreading illnesses and disease, worsening long-term illnesses and reducing workplace productivity. 

What does Labour plan to change? 

One of the biggest changes to statutory sick pay that Labour are planning to make, is removing the Lower Earning Limit. This will mean that the before 1.3 million people across the UK will be eligible to claim statutory sick pay. 

Not only this, but they are planning to remove the existing waiting period of four days. So, employees will be eligible from day one of their absence. 

These changes aim to support employees through their illness, and allow them to take the time they need to recover with financial security. 

This will help individuals and improve workplace productivity, by reducing the spread of infectious disease. 

How does it plan to work? 

As part of the new bill, statutory sick pay measures will include the following: 

• Including statutory sick pay (inc. current enforcement and dispute process) with the single enforcement body (The Fair Work Agency). 
• Removing the Lower Earning Limit, to ensure that statutory sick pay is available to all employees no matter what their weekly earning is. This will ensure that lower earners including those who earn less than the existing LEL will be given a rate that is either a percentage of their earnings, or a flat rate of £166.75 - whichever is lower.
• The removal of the waiting period for the statutory sick pay system and amend the period of incapacity for work. This will ensure eligible employees are entitled to statutory sick pay from day one of absence. 

How can Croner help?

If you’re asking yourself, how do I implement the new statutory sick pay into my business? Or what documentation updates are required? Then let Croner’s experts help you. 

Our advisors are on hand 24/7 to help support and advise you through the changes. Get in contact on 0808 501 6650