🚨 Employment Rights Bill Update – SSP 🚨
The Department for Work and Pensions published a new factsheet at the end of April, giving more detail on the planned changes to SSP.
In case you’re not up to speed yet, here’s what’s changing…
📌A new SSP rate
80% of normal weekly earnings or £118.75 per week (whichever is lower).
📌Removal of the Lower Earnings Limit
Currently employees need to earn above £125 per week to qualify for SSP.
📌Expanded eligibility
Removing the LEL extends SSP eligibility to 1.3 million additional employees.
📌Scrapping the waiting period
SSP being payable on the first day of absence, instead of day 4.
But what’s the real impact of these changes to employers?
Increased sick pay costs from removal of the LEL and waiting period.
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Updates needed to absence management policies and procedures.
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Updates needed to payroll processes to support new calculations.
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The new Fair Work Agency pursuing employers for underpayment of SSP
The Bill remains a work in progress, but the government are hoping it could receive royal assent before July, meaning some changes could come into force this Autumn.
You can read the full factsheet here 👉 https://assets.publishing.service.gov.uk/media/6809098f0324470d6a394f33/statutory-sick-pay-lower-earnings-limit-removal-structure.pdf
If you would like to ask questions or get advice on specific elements of the Employment Rights Bill, our team are always up to date and just a phone call away.
Contact me to book a FREE 30-minute call today.
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