As an employer or employee in the United Kingdom, it is important to understand what statutory sick pay (SSP) is and how it works. SSP is a government-mandated payment that employers are required to make to their employees who are unable to work due to illness or injury. In this article, we will explore what statutory sick pay is, who is eligible to receive it, how much employees can receive, and other important details about this important benefit.
Who is eligible for SSP?
Employees who are classified as “employees” and have been off work due to illness or injury for at least four consecutive days are eligible for statutory sick pay. This includes full-time, part-time, and casual employees, as well as agency workers and some self-employed individuals. Employees must also earn a minimum amount per week to qualify for SSP, which is currently £120 per week.
How much is SSP?
As of April 2021, eligible employees can receive £96.35 per week in statutory sick pay. This amount is paid by employers for up to 28 weeks. Employers are required to pay SSP to employees even if they only work part-time or have a fixed-term contract. SSP is paid in the same way as regular wages, either weekly or monthly, and is subject to tax and National Insurance contributions.
How do employees claim SSP?
Employees who are off work due to illness or injury must inform their employer as soon as possible and provide a doctor’s note, also known as a “fit note,” if they are off work for more than seven days. The doctor’s note should outline the employee’s condition and how long they are expected to be off work. Employers may have their own sick pay policies in place, but they must still pay SSP to eligible employees as required by law.
How does SSP impact employers?
Employers are responsible for paying SSP to eligible employees and can reclaim some or all of the cost from the government. If an employee is off work due to illness or injury for more than four days in a row, employers must begin paying SSP from the fourth day onwards. Employers are not required to pay SSP to employees who are on maternity or paternity leave, adoption leave, or shared parental leave, as these employees are entitled to other forms of statutory pay.
Employers must keep accurate records of SSP payments and retain them for at least three years in case of an audit by HM Revenue & Customs (HMRC). Employers can use the government’s statutory sick pay Calculator to determine how much SSP to pay their employees and to check their eligibility for SSP reimbursement.
What happens if an employee is not eligible for SSP?
If an employee is not eligible for SSP, they may still be entitled to other forms of financial support, such as Universal Credit or Employment and Support Allowance (ESA). Employees should contact their local Jobcentre Plus office or the ESA helpline for more information about these benefits.
Employers should be aware that they cannot withhold SSP from eligible employees or discourage them from taking time off work due to illness or injury. Doing so could result in legal action and penalties against the employer. Employers should also have clear policies in place regarding sick pay, including how to report absences due to illness, how SSP will be paid, and what documentation is required from the employee.
In conclusion, statutory sick pay is an important benefit that provides financial support to employees who are unable to work due to illness or injury. Employers are required to pay SSP to eligible employees and can reclaim some or all of the cost from the government. Employees should follow the proper procedures to claim SSP and seek other forms of financial support if they are not eligible. By understanding how SSP works and their rights and responsibilities, both employers and employees can ensure a smooth and fair process for managing sick leave.