Many employers ask me: do employers have to pay sick pay by law in the UK? I’m John Bloor from EBS Law, and in this article I explain the statutory requirements, when sick pay applies, and what choices you have as an employer when dealing with employee absence.
Understanding statutory sick pay obligations
Statutory Sick Pay (SSP) is the minimum level of sick pay that employers must provide to eligible employees. It is set by the government and must be paid by employers for up to 28 weeks of sickness absence. Employers cannot reclaim SSP from the government except in very limited circumstances. Whether you need to pay beyond SSP depends on the terms of your contracts and policies.
Eligibility for statutory sick pay
Not all absences qualify for SSP. Employees are entitled if they:
- Are classed as an employee and have done some work for you
- Earn on average at least £123 per week (before tax)
- Have been ill for four or more consecutive days (including non-working days)
Employees must also inform you promptly about their sickness absence. Employers can require medical evidence, such as a fit note, after seven days of absence.
So, do employers have to pay sick pay every time?
Employers must pay SSP where the legal conditions are met. You do not have to pay for the first three “waiting days” unless contractual sick pay applies. After that, SSP starts from day four of sickness absence. If an employee is not eligible for SSP, you must inform them and provide the SSP1 form so they can claim other benefits.
Contractual sick pay vs statutory sick pay
Some employers offer enhanced contractual sick pay as part of their employment package. This may cover full pay or a percentage of pay for a set period. Offering contractual sick pay can help attract and retain staff, but it also increases costs. You should ensure your contracts and policies clearly set out whether enhanced pay is offered, for how long, and under what conditions.
Risks of not paying sick pay correctly
If you fail to pay SSP when due, employees can complain to HMRC or bring claims in the employment tribunal for unlawful deduction of wages. Where contractual sick pay is offered, failure to pay may also amount to breach of contract. Additionally, inconsistent treatment between employees could result in discrimination claims. Employers should therefore apply clear, consistent policies to avoid risk.
If you would like free advice, John Bloor and the team are here to help. Call John today on 01625 875587 or email enquiries@ebslaw.co.uk for tailored support.
Sick pay and part-time or agency workers
Part-time employees and agency workers may also qualify for SSP provided they meet the earnings and length of absence criteria. Employers should not assume that only full-time staff are eligible. Equally, fixed-term employees have the same statutory rights during their contract period.
Long-term sickness absence
SSP runs for a maximum of 28 weeks. After this, the employee may be able to claim Employment and Support Allowance (ESA) or Universal Credit. Employers should manage long-term absence carefully, including considering reasonable adjustments where disability may be a factor. Dismissing an employee while they are sick without considering adjustments can amount to disability discrimination.
How much sick pay do employers have to pay?
As of April 2025, the statutory rate of SSP is £116.75 per week. This is a flat rate and does not depend on the employee’s normal earnings, provided they meet the earnings threshold. Contractual sick pay schemes may provide more generous rates, but you must always meet at least the statutory minimum. Current rates and guidance can be checked at gov.uk: statutory sick pay.
Managing sickness absence fairly
While SSP sets the minimum you must pay, managing sickness absence goes beyond pay. Employers should have clear absence reporting procedures, keep in touch during sickness, and use return-to-work interviews. Where absence is persistent, you may need to consider capability procedures, but always with caution and legal advice.
Checklist for employers:
- Have you confirmed the employee meets SSP eligibility rules?
- Have you applied the three waiting days correctly?
- Have you provided SSP1 forms for ineligible employees?
- Do your contracts clearly state if contractual sick pay is offered?
- Are you applying absence policies fairly and consistently?
Why seek legal advice?
Sick pay seems straightforward, but issues often arise when SSP overlaps with maternity, disability, or long-term capability cases. Employers also face challenges with repeated short-term absences, inconsistent reporting, or when sickness coincides with disciplinary action. Taking advice ensures compliance while protecting your business against costly claims.
Contact John Bloor today for expert support at EBS Law. We’re here to ensure your business stays protected every step of the way. Call 01625 875587 or email enquiries@ebslaw.co.uk.
You may also find these EBS Law resources helpful:
- Can an Employer Claim Back Statutory Sick Pay?
- Long-Term Sickness Employment Rights
- Employee Called in Sick but Seen Out?
Disclaimer: This article provides general information only and does not constitute legal advice. For tailored advice on your specific circumstances, please contact us directly.