Statutory sick pay, often referred to as SSP, is a payment made by employers to employees who are unable to work due to illness or injury. This payment is a legal requirement in the United Kingdom and is designed to provide financial support to employees during periods of sickness. Understanding how statutory sick pay works is important for both employers and employees, as it can have significant implications for both parties.
Who is Eligible for statutory sick pay?
In order to qualify for statutory sick pay, employees must meet certain criteria set out by the government. Firstly, employees must be classified as an employee, meaning that they must have a contract of employment with their employer. Self-employed individuals and workers on a casual or freelance basis are not eligible for statutory sick pay.
Secondly, employees must have been off work due to illness for at least four consecutive days, including non-working days such as weekends. This is known as a “qualifying period” and must be met in order to be eligible for statutory sick pay.
Employees must also be earning at least £120 per week in order to qualify for statutory sick pay. This is known as the “lower earnings limit” and is reviewed annually by the government.
How Much is statutory sick pay?
The amount of statutory sick pay that employees are entitled to depends on their earnings and length of sickness absence. As of 2021, employees are entitled to £96.35 per week for up to 28 weeks. This amount is paid by the employer and is subject to tax and national insurance deductions.
Employers may choose to offer more than the statutory sick pay amount, known as “contractual sick pay”, but this is not a legal requirement. However, employers must pay at least the statutory sick pay amount to eligible employees.
How to Claim statutory sick pay
Employees who need to take time off work due to illness should inform their employer as soon as possible. Some employers may have specific procedures in place for reporting sickness absence, so it is important for employees to follow these instructions.
In most cases, employees will need to provide their employer with a doctor’s note, known as a “fit note”, in order to qualify for statutory sick pay. This note should outline the employee’s medical condition and how long they are expected to be off work. Employers may also request additional information from the employee’s healthcare provider in order to assess their eligibility for statutory sick pay.
Once the employee has provided the necessary information, their employer should start paying statutory sick pay from the fourth day of sickness absence. Employers are required to pay statutory sick pay for up to 28 weeks, after which time employees may be eligible for other forms of financial support, such as Employment and Support Allowance.
Employers’ Responsibilities
Employers have certain responsibilities when it comes to statutory sick pay. Firstly, employers must keep accurate records of their employees’ sickness absences and statutory sick pay payments. This information may be requested by HM Revenue and Customs (HMRC) during an audit, so it is important for employers to maintain thorough records.
Employers must also ensure that they pay statutory sick pay correctly and on time. Failure to do so could result in penalties from HMRC, including fines and legal action. Employers should familiarize themselves with the rules and regulations surrounding statutory sick pay in order to avoid any potential issues.
Employees’ Rights
Employees have the right to claim statutory sick pay if they meet the eligibility criteria outlined by the government. Employers cannot refuse to pay statutory sick pay to eligible employees, and they must follow the correct procedures for assessing and paying statutory sick pay.
If an employee believes that they have been unfairly denied statutory sick pay, they have the right to appeal the decision. Employees should seek advice from a trade union representative or legal professional if they are unsure about their rights or how to proceed with an appeal.
In conclusion, understanding statutory sick pay is crucial for both employers and employees. By knowing the eligibility criteria, payment amounts, and claims process, both parties can ensure that statutory sick pay is paid correctly and in accordance with the law. By following the rules and regulations surrounding statutory sick pay, employers can support their employees during periods of sickness and mitigate any potential risks or issues. Similarly, employees can access the financial support they need while off work due to illness, giving them peace of mind during a challenging time.