Q: I hear the changes to sick pay took effect this month and we’re still playing catch-up on what the reforms really mean. Help.
A: The changes to statutory sick pay are some of the most impactful reforms from the Employment Rights Act; I speak to business owners daily who don’t know where to start when it comes to modernising their policies and procedures.
Since April 6, sick pay has been payable to employees from day one of illness, as opposed to the previous arrangement where it was only paid after the third consecutive day of absence.
There are a number of steps to take to ensure you are compliant.
The first thing is to look at your sickness absence policy to make sure it is up to date. You will need to change it to include the removal of the lower earnings limit and waiting days, as well as information on the new sick pay calculation method.
Any sick pay falling due since last week will be paid at 80 per cent of weekly earnings or the flat rate, whichever is lower. All workers, regardless of their earnings, are entitled to this from the first full day of absence. This means a small group of workers who earn just over the lower earnings limit will actually receive a lower weekly rate than under the previous system.
If your organisation offers company sick pay you may wish to review how it is applied in light of these changes. Each company’s policy will be specific to them, so check the wording on your contracts. If it says “company sick pay is in line with...
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