What Should Employers Know About the New Statutory Sick Pay Reforms?
Overview
The Employment Rights Bill proposes several important changes to Statutory Sick Pay (SSP) that employers should begin preparing for now.
For many businesses, the concern is straightforward:
"Will sickness absence become more difficult and expensive to manage?"
The reality is that the proposed reforms are unlikely to remove an employer's ability to manage attendance. However, they may increase entitlement and place greater emphasis on effective absence management.
What Changes Are Proposed?
The Government has indicated plans to:
- Remove the lower earnings limit for SSP eligibility
- Remove waiting days before SSP becomes payable
- Extend access to SSP for lower-paid workers
The intention is to provide greater financial protection for employees who are unable to work due to illness.
What Does This Mean for Employers?
The practical impact will vary between businesses.
Employers may see:
- More employees qualifying for SSP
- SSP becoming payable sooner
- Increased sickness-related costs
- Greater focus on attendance management
The legal framework around capability, attendance management and long-term sickness absence is not expected to disappear.
Why Good Absence Management Matters
The first priority should always be understanding what is causing the absence.
Absence can be influenced by:
- Physical health
- Mental wellbeing
- Workplace pressures
- Personal circumstances
- Underlying medical conditions
Managing attendance effectively requires understanding the situation before deciding what action is appropriate.
Practical Steps Employers Should Take
Review Your Sickness Policy
Check that your policy explains:
- Reporting procedures
- Certification requirements
- Contact expectations
- Sick pay arrangements
- Return-to-work processes
Train Managers
Managers should understand:
- How to conduct welfare conversations
- When to seek medical advice
- When Occupational Health may be helpful
- How to manage attendance fairly
Monitor Trends
Look for patterns such as:
- Frequent short-term absences
- Particular departments with higher absence levels
- Seasonal trends
- Repeat reasons for absence
Identifying patterns early often helps prevent larger problems later.
Review Enhanced Sick Pay Arrangements
If your business offers contractual sick pay, consider whether those arrangements remain appropriate and sustainable.
Key Takeaway
The proposed SSP reforms are designed to increase support for employees during periods of illness.
For employers, the best preparation is not focusing solely on cost. It's ensuring absence management processes are clear, consistent and well managed.
Businesses that understand the reasons behind absence and address concerns early are likely to be best placed to manage the changes effectively.