'Cost & legal risk' | Short-term sickness already employers' biggest challenge ahead of major sick pay reforms

Short-term, frequent absences are employers’ biggest sickness-related challenge which could be exacerbated by the looming reforms to Statutory Sick Pay (SSP) and entitlement in the Employment Rights Bill, according to new research. 

The findings from WorkNest suggest that pressure is already placed on businesses with more than a third (37%) saying high levels of short-term, frequent absence is their main challenge when it comes to managing sickness. 

From April, SSP will be payable from the first day of sickness, removing the current three unpaid waiting days. At the same time, the lower earnings limit will be abolished, extending SSP entitlement to the lowest-paid employees. It is estimated that 1.3 million low-paid workers will now be entitled to SSP.

The combined effect is that more employees will qualify for sick pay, more short absences will be paid, and payments will more closely reflect actual wages - increasing both cost and operational pressure for employers.