These notes cover Statutory Sick Pay (SSP) payroll queries. Further guidance on the new Statement of Fitness for work for HR absence management purposes, can be found on the Department for Work and Pensions (DWP) website.
Read more on the DWP website (Opens new window)
Doctors are not required to provide a Statement for any period of sickness absence lasting seven days or less. As a result, employees should self-certify as being unfit for work for the first seven days of sickness. Employers are entitled to ask an employee for a Statement after this seven day period.
There are no changes to the qualifying conditions for payment
of SSP as a result of the introduction of the Statement of Fitness
for Work. The normal qualifying conditions still apply.
You are entitled to set your own rules and conditions of entitlement for
Occupational Sick Pay (OSP) - also know as contractual sick pay. The Government
does not set the rules and conditions of OSP schemes and their rules and
conditions are a matter between employers and their employees.
OSP may be due under the terms of your scheme when SSP is not payable or it may top up SSP. Similarly, you have the discretion to make alternative arrangements for payment during periods of sickness provided you continue to meet any SSP liability.
SSP is only a minimum provision - employers have discretion to pay above the minimum provision. For example, you may have an Occupational Sick Pay scheme in place or make alternative payments.
In cases where it may be appropriate to support your employee back to work, for example by reducing the hours they work for a period, you should consider the financial impact on the employee and whether they might be disadvantaged by returning to work. Payments above the minimum level could help in your employee’s rehabilitation and support them to make an earlier return to work.
You may want to discuss the implications further with your HR department, if you have one, and consider whether it would be beneficial to the business and the individual to pay above the minimum provision of SSP.
Under the SSP scheme a person has to be ill for at least four or more days in a row - a Period of Incapacity for Work (PIW) - before payment of SSP can be considered. Also, remember that if the first period of sickness absence is greater than four days in a row and it does not link to a previous PIW, the usual three waiting days will apply. Waiting days are discussed later.
However, if you run an OSP scheme you may be able to consider payment of OSP for days when SSP cannot be paid depending on the terms and conditions of your scheme.
Alternatively, you have the discretion to make alternative arrangements for payment. This could help in your employee’s rehabilitation and help them return to work earlier.
The normal rules for paying SSP apply during a phased return to work. During a period of phased return you must consider payment of SSP for days not worked. Any day for which SSP is paid will count towards the maximum entitlement of 28 weeks. Any day worked will not be counted as a day of incapacity for SSP purposes, but your employee will be entitled to their normal pay under their contract of service for days worked.
If you run an OSP scheme you may be able to consider payment of OSP. You may also make alternative payments for days when SSP cannot be paid.
Susan was off for 6 weeks and received SSP during this time. She normally works full time, Monday to Friday. She has agreed with her employer to return to work on a phased basis.
For the first 2 weeks Susan returns to work 3 days a week on Wednesday, Thursday and Friday. The next week she increases this to 4 days a week by also coming in on Tuesday, before returning to her normal full-time working pattern of Monday to Friday the following week.
For the first 2 weeks of her phased return she received SSP for Monday and Tuesday, and received her normal pay for working on Wednesday, Thursday and Friday.
In the third week of her phased return she was not entitled to SSP for Monday as a PIW was not formed. However, her employer made arrangements for payment at the equivalent rate of SSP for the Monday. She received her normal pay for working on Tuesday, Wednesday, Thursday and Friday that week.
When she returned to work full time she went back to receiving full pay as normal.
|
Mon |
Tue |
Wed |
Thur |
Fri |
Sat |
Sun |
|---|---|---|---|---|---|---|---|
Weeks 1 and 2 |
Sick absence |
Sick absence |
Worked |
Worked |
Worked |
|
|
Week 3 |
Sick absence |
Worked |
Worked |
Worked |
Worked |
|
|
Week 4 |
Back to work full time |
Back to work full time |
Back to work full time |
Back to work full time |
Back to work full time |
|
|
It is important to remember that a PIW is a period of four or more days in a row. Saturdays and Sundays can form part of the PIW. If we refer to the table above:
Before agreeing a phased return to work, the employer should consider if the employee could be financially disadvantaged as a result. For example, if the employee were to work alternate days they would not form a PIW and as a result would not qualify for SSP. Again, you could consider OSP or make alternative arrangements for payment to allow your employee to return to work.
SSP is not payable for any work done in a day, even if only one hour is worked. You must pay the employee their normal pay under their contract of service for the hours worked.
You may be able to pay OSP for the hours not worked depending on the rules and conditions of your scheme, or make some other discretionary arrangements for payment.
Where an employer cannot accommodate any changes the Statement is taken as the employee being not fit for work. The period covered will be that as stated by the doctor. The employee is not required to get a further Statement as a result of the employer not being able to accommodate any changes. Payment of SSP must be considered under the normal rules.
For SSP once a PIW is formed, the normal rules for imposing waiting days apply. Waiting days are imposed on all PIWs that do not link.
Therefore, for an employee who returns to work, for example, on a phased return, a PIW must be formed before payment of SSP can be considered. If the PIW does not link to a previous PIW, waiting days will be imposed.
OSP schemes may have their own qualifying conditions and you also have the discretion to make alternative arrangements for payment during periods of sickness.
Where the line manager and /or HR department believe that, on the basis of the advice given and their knowledge of the workplace, they can support the employee to return to work and the employee disagrees, the first option should always be to discuss the matter with the employee to find out why they believe they cannot return to work. There may be an aspect of their condition or the workplace that was not considered.
If no agreement on the employee’s fitness for work can be reached, the employer may want to consult an occupational health specialist and, if needed, should consider the organisational policy for absence disputes. More information on best practice and support can be found on the Acas website – use the link below.
Find advice and support on disputes with employees on the Acas website (Opens new window)
The aim should be to ensure that both the employer and the employee are comfortable with the support that is being offered. If there is disagreement the employer may wish to suggest that the employee seeks advice from their trade union or an advice centre.
Under the SSP scheme, it is up to the employer to decide in the first instance whether they accept that their employee is incapable of work. If the disagreement is about the payment of SSP then there is a prescribed HMRC procedure – follow the guidance in HMRC’s publication E14, ‘Employer Helpbook for Statutory Sick Pay’.
Download E14, ‘Employer Helpbook for Statutory Sick Pay’ (PDF 316K)
You may want to consider revisiting the terms and conditions for your OSP scheme as a result of the introduction of the Statement of Fitness for Work. You should seek to review it in consultation with your employees or their representatives, such as trade unions.
