Low earners are set to receive statutory sick pay (SSP) at a rate of 80% of their normal weekly earnings. This follows the recent consultation on the government’s proposed reform of SSP in the Employment Rights Bill (the Bill).
The Bill, if passed, will remove the lower earnings threshold, so that all employees are eligible for SSP. After publishing its response to the consultation on SSP reforms, the government has introduced an amendment that would ensure that all employees receive the lower of the existing flat rate (£118.75 from 6 April 2025) and 80% of their normal weekly earnings.
The Bill already proposed removing the three-day waiting period so that employees receive SSP from day one of their absence. The government’s rationale for the change is to allow employees to take the time they need to recover from short-term illnesses or prevent a worsening of fluctuating or long-term conditions.
The government also proposes to include SSP within the remit of the planned new Fair Work Agency. We blogged here about the agency’s proposed remit. Recent amendments to the Bill would give wide-ranging powers to the Fair Work Agency, which would be able to:
- pursue employers for underpayments of national minimum wage, holiday pay and sick pay, with potential financial penalties payable to the government in addition to the unpaid amount due to employees;
- pursue employment tribunal claims on behalf of workers; and
- offer legal assistance for employment tribunal claims, with a losing employer potentially having to pay the Fair Work Agency’s costs.
The Bill still has several stages of the Parliamentary process to go through and we will keep a close eye on any further changes to its provisions. The changes to SSP are reasonably straightforward and could be one of the earlier changes to take effect. The set-up of a Fair Work Agency, and transfer of powers from existing enforcement bodies, will be complex and is likely to take longer to accomplish.
We are running a series of 30-minute webinars to highlight the key points employers should be aware of and thinking about. You can sign up for these here.
