In this month’s article we look to Statutory Sick Pay (SSP), specifically as it is relevant to Northern Ireland. With both long- and short-term absence rates increasing nationwide, alongside greater interconnectedness with other legislative protections such as Disability Discrimination, managing sickness absence is getting all the more complex.
We can however, ensure we have the absolute basics of entitlements, processing and payments right, particularly in the face of upcoming change.
The rules around SSP had remained relatively stable since its introduction in 1983, no huge shakes, with the exception of a general inflationary uplift in statutory payments annually.
In recent years SSP has faced public and political challenge regarding its suitability, the SSP rate, which is one of the lowest in Europe, also ranks among the least generous rates in the developed world.
SSP hit the headlines via the concurrent consultations and subsequent approvals for elements of the Employment Rights Bill & the Good Jobs Bill in NI with the heavy media coverage associated with each. With a complex process of approvals and assent, changes which are expected in phases, and a system of SSP in NI which is devolved and is the responsibility of Department for the communities, this has only added to confusion for many employers, it is any wonder many are unsure if they are coming or going.
As noted, whilst Employment Law changes do not and will not automatically come into effect in NI, Department of Communities has already confirmed that the proposed changes to SPP in the UK will also apply in Northern Ireland, with the rollout here following the same timeline.
Currently in NI, SSP is paid from the fourth day of sickness absence at a flat weekly rate (currently £118.75). Employees are only eligible if they are earning above the Lower Earnings Limit, which currently stands at £125 per week.
However, under the new legislation, SSP will become payable from the first full day of sick leave, removing the existing three-day waiting period.
Additionally, the Lower Earnings Limit will be abolished, meaning more employees will qualify for SSP.
Eligible workers will receive either the flat SSP rate or 80% of their weekly earnings, whichever is lower.
There is already no length of service eligibility criteria on SSP, however, employees would have needed to earn at least the lower earnings limit, which may be demonstrated in one weeks pay. With the abolishment of the 3 day waiting and the lower earnings limit, this means ALL employees will be eligible for SSP from their first day of employment.
These changes are expected to increase both the number of employees eligible for SSP and the speed at which payments begin, potentially impacting patterns of short-term absence and placing administrative pressure on payroll processors.
If you have any queries regarding the management of Statutory Sick Pay, or need support with updating policies, procedures and processes in preparation for the approaching changes to legislation, please do reach out to us.