statutory sick pay, often abbreviated as SSP, is a legal requirement in the United Kingdom that mandates employers to pay their employees a minimum sum while they are off work due to illness. This payment is intended to provide financial support to employees who are unable to work due to sickness or injury. In this article, we will discuss everything you need to know about statutory sick pay.
Who is Eligible for statutory sick pay?
Not all employees are eligible for Statutory Sick Pay. To qualify for SSP, an employee must meet the following criteria:
– They must be classified as an employee, not a worker or self-employed individual.
– They must have been off work due to illness for at least four consecutive days, including non-working days.
– They must earn at least £120 per week.
– They must inform their employer of their illness within the required timeframe.
If an employee meets these criteria, their employer is legally obliged to pay them SSP. This payment must be made for up to 28 weeks, with a minimum entitlement of £96.35 per week.
How is Statutory Sick Pay Calculated?
The amount of Statutory Sick Pay an employee is entitled to receive is calculated based on the employee’s average weekly earnings. To calculate this, the employer must use the employee’s earnings over an 8-week period leading up to the first day of sickness.
If an employee’s average weekly earnings are equal to or greater than £120, they are entitled to the full rate of SSP, which is £96.35 per week. If their earnings are below £120, they are not entitled to SSP.
It is important to note that employers are responsible for calculating and paying SSP to their employees. Failure to do so can result in penalties from HM Revenue and Customs.
Can Statutory Sick Pay be Enhanced?
Some employers choose to enhance Statutory Sick Pay by offering additional sick pay benefits to their employees. This often takes the form of company sick pay schemes, which provide employees with a higher level of sick pay than the statutory minimum.
Enhanced sick pay schemes are not a legal requirement, but they can be a valuable employee benefit. By offering enhanced sick pay, employers can demonstrate their commitment to supporting their employees during times of illness and injury.
Employees should check their employment contract or company handbook to determine if they are entitled to enhanced sick pay. If they are unsure, they should speak to their employer or HR department for clarification.
What Happens if Statutory Sick Pay Runs Out?
If an employee’s entitlement to Statutory Sick Pay runs out (after 28 weeks), they may be eligible for other forms of financial support. This could include benefits such as Employment and Support Allowance (ESA) or Universal Credit.
Employees should contact their local Jobcentre Plus or seek advice from a welfare rights service to find out what benefits they may be entitled to. It is important to note that eligibility for these benefits will depend on individual circumstances, such as income, savings, and household composition.
Conclusion
Statutory Sick Pay is a valuable source of financial support for employees who are unable to work due to illness or injury. Employers have a legal obligation to pay their employees SSP if they meet the eligibility criteria, and failure to do so can result in penalties.
While SSP provides a basic level of financial support, some employers choose to enhance their sick pay policies to offer additional benefits to their employees. Enhanced sick pay schemes can be a valuable employee benefit and demonstrate an employer’s commitment to supporting their workforce.
If an employee’s entitlement to SSP runs out, they may be eligible for other forms of financial support, such as ESA or Universal Credit. It is important for employees to be aware of their rights and entitlements when it comes to sick pay.
Overall, Statutory Sick Pay plays a crucial role in supporting employees during times of illness and injury, and both employers and employees should be aware of their rights and responsibilities when it comes to SSP.