A Comprehensive Guide To Statutory Sick Pay (SSP) For Employers
As an employer, it’s crucial to understand your obligations when it comes to Statutory Sick Pay (SSP) in order to effectively manage employee absences due to illness SSP is a legal requirement in the UK, designed to support employees who are unable to work due to ill health In this guide, we will provide all the information you need to know about SSP and how to administer it correctly in your organization.
What is SSP?
SSP is a financial benefit provided to employees who are unable to work due to illness for a certain period of time It is paid by employers and is intended to help employees during periods of sickness when they are unable to earn their usual income The current rate of SSP is £95.85 per week, and it is paid for up to 28 weeks.
Who is Eligible for SSP?
To be eligible for SSP, an employee must meet the following criteria:
– They must be classified as an employee, rather than a worker or self-employed individual.
– They must have been off work due to illness for at least four days in a row, including non-working days.
– They must earn at least £120 per week.
– They must inform their employer of their sickness absence within the company’s specified time frame.
It is important to note that SSP is not payable for the first three days of sickness absence, known as ‘waiting days’ Employers can choose to pay employees for these days at their own discretion, but this is not a legal requirement.
Administering SSP
As an employer, it is your responsibility to keep accurate records of your employees’ sickness absences and to pay SSP when required Here are the steps you need to follow to administer SSP effectively:
1 Requesting Proof of Illness: Employees are required to provide proof of their illness in the form of a doctor’s note, often referred to as a ‘fit note’ This should be provided after seven days of sickness absence If an employee is off work for more than seven days, you can request the fit note as evidence of their illness Failure to do so may result in the employee not being eligible for SSP.
2 Calculating SSP: The current rate of SSP is £95.85 per week, paid for up to 28 weeks SSP should be paid alongside regular wages, at the employee’s usual pay intervals If an employee’s earnings are variable, you will need to calculate their average weekly earnings over a specified reference period to determine their SSP entitlement.
3 ssp guide for employers. Communicating with Employees: It is important to communicate openly and clearly with your employees about their entitlement to SSP and the process for claiming it Employees should be made aware of the company’s sickness absence reporting procedures and any documentation required to support their claim for SSP.
4 Keeping Records: Employers are required to keep accurate records of SSP payments made to employees, including the dates of sickness absence, the amount of SSP paid, and any supporting documentation This information should be kept for at least three years and may be requested by HM Revenue & Customs (HMRC) during a compliance check.
5 SSP Reclaim Scheme: Employers with fewer than 250 employees may be eligible to reclaim a proportion of the SSP paid to employees This scheme is designed to help smaller businesses manage the cost of SSP during periods of high sickness absence Employers can claim back up to two weeks’ worth of SSP per employee, per year More information on the SSP reclaim scheme can be found on the HMRC website.
Managing Long-Term Sickness Absences
If an employee’s sickness absence extends beyond 28 weeks, they may be eligible for other forms of financial support, such as Employment and Support Allowance (ESA) It is important to stay in regular contact with employees who are on long-term sick leave to provide support and guidance on their return to work.
Employers should also consider implementing a return-to-work plan for employees who have been off sick for an extended period This may involve making adjustments to their role or working hours to support their gradual return to work.
Conclusion
Understanding your responsibilities as an employer when it comes to SSP is essential for effectively managing employee absences due to illness By following the guidance provided in this article, you can ensure that you administer SSP correctly and support your employees during periods of sickness absence Remember to keep accurate records, communicate openly with your employees, and seek advice from HMRC if you have any questions about SSP.