First day sick pay

04 June 2025

The Employment Rights Bill has removed the period of three days before Statutory Sick Pay kicks in and has removed the lower earnings threshold. In short this means that every employee – regardless of the number of hours worked – will now qualify for SSP if they have any earnings at all.

This change is likely to come into force from April 2026, and so from this date employees will be entitled to receive Statutory Sick Pay from day one of absence. This is a change that will result in almost instant cost implications for employers. This will especially be the case for those experiencing high levels of short-term absence.

If this sounds like your business, then this something worth addressing now before the changes come into effect. Sickness absence and enhanced sick pay schemes should be assessed in light of the proposed changes – for example if you have enhanced sick pay that is in line with the current statutory entitlement the result will be employees being automatically on full pay from the first day of absence unless the policy is amended.

Due the factors above, short-term absences will have a much-increased financial impact. This means employers will want to ensure they are properly monitoring patterns of absence and following up absences with effective processes for returning to work.

If you are making policy or contractual changes, be mindful of the impending loss of the fire and rehire backstop as outlined above.

Our employment team can help you prepare for the financial and procedural impact of first day sick pay. Contact Backhouse Jones for tailored legal advice.

This article was written by Laura Smith.