Statutory Sick Pay changes during the pandemic

The COVID-19 pandemic has necessitated rapid changes to employment legislation, particularly concerning Statutory Sick Pay (SSP). The government has introduced temporary measures to ensure employees are supported if they need to self-isolate, and to help small employers manage the financial burden of increased sickness absence.

Understanding these new rules is essential for processing payroll correctly and ensuring compliance with public health directives.

SSP from day one

Under normal rules, SSP is only payable from the fourth qualifying day of sickness absence. However, emergency legislation dictates that if an employee is absent from work due to COVID-19, SSP is payable from the first qualifying day. This applies to employees who are sick with the virus, as well as those who are self-isolating in accordance with government guidelines (for example, because someone in their household has symptoms).

The SSP Rebate Scheme

To support small and medium-sized employers, the government has launched the Coronavirus SSP Rebate Scheme. Employers with fewer than 250 employees (as of 28 February 2020) can reclaim up to two weeks of SSP paid to current or former employees for absences related to COVID-19. The scheme is designed to be simple, allowing employers to make claims through a dedicated online portal. Employers must keep records of the absences and the SSP payments made, but employees do not need to provide a GP fit note to trigger the rebate.

Shielding employees

Employees who have been advised by the NHS to 'shield' because they are extremely vulnerable to severe illness from COVID-19 are also entitled to SSP, provided they cannot work from home. Employers should engage with shielding employees to explore home-working options where possible, or consider utilising the Coronavirus Job Retention Scheme (furlough) as an alternative to SSP, as this provides a higher level of financial support for the employee.