What’s happening?
In October 2024, the government began several 6-week consultations as part of its plan to Make Work Pay. On 4 March, the government published its responses and confirmed several key amendments to the Employment Rights Bill (ERB). As a reminder, the ERB is still subject to parliamentary approval and is estimated to come into force at some point in 2026 so we will provide further updates when this happens.
This article is part of a mini-series where we are exploring the government’s recent responses to the various ERB consultations. You can find our other articles in the series here:
- Make Work Pay – Collective Redundancy & Fire and Rehire
- Make Work Pay – Umbrella Companies
- Make Work Pay – Trade Unions
- Make Work Pay – Zero Hour & Agency Workers
However, in this article we are focussing on some of the key changes being made to the ERB in relation to Statutory Sick Pay (SSP).
Why is this important?
The ERB already contains provisions to remove the lower earnings limit for SSP (to make all employees eligible). It further provides for SSP to be paid from the first day of absence, removing the current “waiting days” system, whereby the first three days of sickness are unpaid and the employee is only paid for the fourth day of absence onwards.
Following consultation, the government has now confirmed that SSP for those employees earning below the rate of SSP (as in force at the relevant time) will be 80% of their normal weekly earnings.
This clearly has a huge knock-on impact for employers, and it is estimated that these measures will result in an additional 1.3 million employees being eligible for SSP.
What should you do?
Stay Tuned: These amendments are still subject to consultation. We will continue to update you of amendments as we receive them and will confirm the final position when the ERB is officially passed.
Prepare: Review how the changes may impact your business financially and operationally. In particular, you may want to consider an appropriate budget increase to cover the additional SSP payable to employees who will be eligible for SSP moving forward. You may also need to update your sick pay policy.
Advice: If you require advice relating to these changes or the ERB in general, please contact [email protected] who can put you in touch with one of our specialist employment lawyers.
Disclaimer
This information is intended for general informational purposes only and does not constitute legal advice. We recommend seeking professional advice before taking any action on the information provided. If you would like to discuss your specific circumstances, please feel free to contact us on 0800 2800 421.
