This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn what UK employers must do when staff go off sick, including eligibility for Statutory Sick Pay (SSP), how to calculate and pay it, reporting duties, and the interplay with contractual sick pay. This guide explains employer responsibilities under current and forthcoming sick pay laws in England and Wales.
When an employee in England and Wales is unable to work due to sickness, the law sets out specific obligations that employers must follow in relation to Statutory Sick Pay (SSP). These duties are designed to ensure workers receive a minimum level of financial support when they cannot work due to illness. This guide explains those employer duties in clear, practical terms, and includes recent and forthcoming legal changes that affect how sick pay must be administered.
Introduction
Sick pay refers to payments that employers must make to workers who are too ill to carry out their job duties. In the UK, the core legal duty for most employers is to pay Statutory Sick Pay (SSP) when certain conditions are met. SSP is the minimum legal entitlement; some employers also offer more generous contractual or occupational sick pay under terms agreed with the employee. This article outlines when employers must pay SSP, how much, how to calculate it, record‑keeping requirements, and the implications of non‑compliance. It also addresses how sick pay interacts with contractual sick pay schemes.
Legal Basis for Sick Pay
Statutory Sick Pay is established in UK social security legislation and employer guidance issued by HM Revenue & Customs (HMRC). Employers are legally obliged to make payments to eligible employees for periods when they are too sick to work, subject to specified eligibility criteria and payment rules. SSP is payable regardless of employer size, and failure to comply can have legal and financial consequences.
Employers must ensure SSP is paid correctly through their payroll systems, with appropriate deductions for income tax and National Insurance, and reported to HMRC via Real Time Information (RTI).
Who Qualifies for Sick Pay
An employer's duty to pay SSP applies only to workers who meet specific eligibility requirements. These include:
- Employment status: The person must have a contract of employment and be classed as employed for tax purposes.
- Work performed: The worker must have done some work under the contract.
- Period of incapacity: The employee must be sick for a continuous period of at least four days in a row (including non-working days) to trigger SSP.
- Earnings threshold (current rule): The employee must earn at least the Lower Earnings Limit (currently around £125 per week) for SSP to be payable.
Keep in mind that from 6 April 2026, the earnings threshold is being removed and SSP will be payable from the first full day of sickness absence, making sick pay accessible to more workers regardless of income.
Employees who do not meet SSP criteria should be provided with an SSP1 form explaining their ineligibility. This form enables them to claim alternative support such as Universal Credit or Employment and Support Allowance.
How Much and How Long to Pay
Rate and Duration
Employers must pay SSP at the statutory weekly rate for eligible periods of sickness. The current weekly rate in the 2025/26 tax year is £118.75. SSP can be paid for up to 28 weeks within one sickness period or linked sickness periods.
The payment should be made in the same way as wages, with tax and National Insurance deducted. Employers decide whether to pay weekly or on normal paydays, but SSP must be processed through payroll.
Waiting and Qualifying Days
Under current rules, SSP usually does not start until the fourth qualifying day of sickness. The first three qualifying days are often known as “waiting days.” A qualifying day is a day the employee would normally have worked. However, proposed changes from April 2026 will remove these waiting days, meaning SSP will be payable from the first qualifying day.
Employer Administrative Duties
Employers have a number of practical duties when administering SSP, including:
Establishing a Sickness Reporting Process
Employers should set out clear procedures for how employees should report sickness, including deadlines and points of contact. Good internal communication helps ensure notifications are timely and correctly recorded.
Checking Eligibility and Calculating Pay
Employers must assess whether an employee qualifies for SSP based on contract status, earnings, and sickness duration. They must identify “qualifying days” and calculate the correct amount of SSP payable for those days.
Recording and Documentation
While employers are not legally required to retain a separate SSP payment ledger, they must keep sufficient records of sickness notifications, SSP calculations, fit notes (doctor's statements), and any SSP1 forms issued. These records may be requested by HMRC in the event of a dispute.
Payroll and Reporting
SSP must be correctly included in payroll and reported through RTI submissions to HMRC. Payroll systems must reflect SSP payments accurately to prevent underpayment and disputes.
Fit Notes and Evidence
Employees absent for more than seven calendar days may be asked to provide a fit note from a registered healthcare professional. Employers should handle these notes sensitively and in line with their sickness absence policies.
Contractual Sick Pay Schemes
Some employers offer contractual (or occupational) sick pay that provides enhanced pay beyond the statutory minimum. These schemes are governed by the terms of the employment contract and may vary widely between employers.
It is important to distinguish contractual sick pay from SSP:
- Contractual sick pay must be provided if the contract expressly provides it.
- SSP is the legal minimum that applies even if there is no contractual scheme.
- Employers cannot contract out of their statutory duty to pay SSP.
If contractual sick pay policies are discretionary, they must be clearly set out in writing and communicated to employees.
Employer Risks and Practical Considerations
Underpayment and Disputes
If an employer fails to pay SSP when due, an employee may raise a dispute with HMRC's Statutory Payment Disputes Team. Proving entitlement may involve reviewing payroll records and sickness notifications.
Record‑Keeping and Compliance
Accurate record‑keeping enhances compliance and reduces the risk of disputes or tribunal claims. Employers should maintain transparent policies and ensure payroll staff understand SSP rules.
Impact of Changing Rules
With reforms planned from April 2026 that remove the earnings threshold and waiting days, employers should prepare to update policies and payroll systems to reflect the new entitlement structure.
Common Questions
Can an employer insist on annual leave instead of sick pay?
No. While some employers may offer discretionary enhancements, they cannot require an employee to use annual leave instead of receiving SSP when they are eligible for sick pay.
Is SSP payable during notice periods?
Yes. If an employee is eligible for SSP during a contractual notice period, the employer must pay SSP alongside normal notice pay entitlements, subject to the same eligibility conditions. This reflects SSP's status as a statutory entitlement.
Can an employer refuse to pay SSP for short absences?
SSP generally applies only where the sickness absence is long enough to meet the qualifying period (currently four days). There is no statutory obligation to pay SSP for shorter absences unless there is a contractual sick pay scheme in place that covers them.
Key Takeaways
Employers in England and Wales must meet legal duties to pay Statutory Sick Pay to eligible employees who are unable to work due to sickness. This involves determining eligibility, calculating the correct rate, administering payments through payroll, and maintaining appropriate records. Employers should also be prepared for legislative changes that broaden access to SSP from April 2026. Contractual sick pay schemes may provide additional benefits, but they do not replace the statutory obligation. Compliance with sick pay duties helps protect businesses from disputes and tribunal claims related to underpayment or unfair treatment.
