Sick Pay: What are the rules?

What are the sick pay rules?

Legal Obligations

First and foremost, an employer is under no legal obligation to pay an employee when they are off sick. In general, it has been found that employers offer between one and five days per annum as paid sick leave, but ultimately it is down to the terms and conditions written in the employment contract.

Sick Days

In the UK there is no legal definition as to how many sick days are too many sick days. Pre Covid, the Office for National Statistics (ONS) stated that the average number of sick days per employee was 4.4 days. Post-Covid this figure has risen to 4.9 days, with certain industries suffering more absenteeism than others.

Most sick periods tend to be short-term and employees only need to complete a self-certification form. Self-certification covers a period of absence for up to seven days. Beyond that time a doctor’s “fit note” is required. Again, terms and conditions in the employment contract can override the basic rules.

Period In Waiting & Statutory Sick Pay

The first three days an employee is off is termed as the Period in Waiting (PIW). Whether or not a company pays sick to its staff, the PIW begins on the first day of sickness. Statutory Sick Pay (SSP) becomes payable on the fourth full day of sickness, it is not payable for half days. If, during a period of paid sickness, SSP is also payable, the employer can reduce the amount of company sick pay to take into account the total SSP the employee receives.

Employees are entitled to 28 weeks of SSP. The current rate is £116.75 per week and this is subjected to normal PAYE regulations. If the employee exceeds the 28 weeks of SSP, then the employer needs to send them a SSP1 form. By law the form should be sent to the employee after 23 weeks so that the employee can apply to the Director of Work and Pensions (DWP) for Universal Credit or Employment Support Allowance.

Since April 2014, employers can no longer reclaim any monies paid to employees under SSP.

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Disclaimer - All information in this post was correct at time of writing.