Sickness can have a serious impact upon your business.
It should be managed properly to ensure that no more sick days than are absolutely necessary are lost.
In these days of disability discrimination and other equality laws you need to make sure you follow the correct procedures when dealing with sickness and termination of employment in these circumstances, should it become necessary.
Make sure you have a sickness policy in place. This will guide you when dealing with sickness issues as and when necessary.
Do we have to pay sick pay?
Usually, yes – unless any of the following apply:
- The employee has not yet done any work for you
- They do not earn enough to qualify for sick pay (their average weekly earnings calculated over at least 8 weeks up to the last normal pay date are below £112 per week (currently the lower earnings limit)
- They have already been off for 28 weeks on SSP over a 3-year period
- They are off work because of a trade union dispute
How much do we pay?
If you do not have a company sick pay scheme, then you must pay Statutory Sick Pay (SSP) after the first 3 days of absence (Waiting Days), at a current rate of £88.45 per week.
Is sick pay paid gross or do I deduct tax and national insurance?
You should deduct tax and national insurance from sick pay.
What do I pay part-time employees – the full SSP or pro rata based on their hours of work?
If the employee earns £112 or more per week they are entitled to full SSP, not a pro rata amount.