What’s happening?
The Statutory Sick Pay (SSP) reforms included in the Employment Rights Bill are as follows:
– The Lower Earnings Limit will be removed to make SSP available to all employees regardless of their weekly earnings.
– Currently, SSP is only payable from the fourth day of absence. The first three days are known as ‘waiting days’. These waiting days will be removed so that eligible employees are entitled to SSP from their first full day of sickness absence.
– A newly established single enforcement body called the Fair Work Agency will have the power to enforce compliance with SSP rules.
– SSP will be paid at a flat rate (currently £116.75 per week) or a percentage of the employee’s earnings, whichever is lower. The Government has committed to consulting on what the percentage rate for those earning below the current flat rate of SSP should be. After consultation, the percentage rate will be specified in the legislation and a change to the Bill will be made accordingly.
Why is this important?
The removal of the requirement to earn at or above the Lower Earnings Limit will mean that up to 1.3 million low-paid employees will now be entitled to SSP. This change, alongside the removal of the waiting days, will ensure that all employees are supported to take the time off they need to recover by providing better financial security.
These changes can also help prevent the spread of infectious diseases in the workplace and reduce the overall rate of sickness absence.
What should you do?
Stay Tuned: Keep an eye out for more of our Legal Updates that will be published over the coming weeks with more detail on each of the reforms.
Advice: If you require advice relating to the Employment Rights Bill, please contact [email protected] who will put you in touch with someone from our Trethowans Employment Team.
