How can HR prepare for statutory sick pay changes?

Some low earners could be up to £100 better off per week, under the upcoming Bill

The Employment Rights Bill looks set to ensure that statutory sick pay (SSP) is available to all workers, from the first day of sickness absence.

Employees who earn below the lower earnings limit will also be able to claim 80% of their weekly earnings as sick pay, or the current rate of SSP, whichever is lower. Though the proposals mean that some low earners could be up to £100 better off per week, others could receive less sick pay than they currently receive.

How can HR help employers prepare for these changes, and further support employees who have health conditions?

Karen Lough, director of people for HR software provider Ciphr

While this change improves financial security for employees, it does mean businesses will need to adapt. It will make sick pay more accessible, which is a positive step for employees. For employers however, there are practical challenges to navigate, including increased costs and potential rises in short-term absences.


Read more: Liz Kendall: Sick pay reform is overdue, it’s time to put it right


HR can help employers prepare for these changes by focusing on the operational impact, ensuring that payroll and policies are aligned, as well as upskilling managers on absence management. Organisations also need to look at how these changes fit into their wider wellbeing approach, balancing business needs with the right level of support for employees.

Clear communication, flexible working practices, an empathetic approach to absence management, and a strong focus on workforce planning will be key to making it work effectively for everyone.

Maxine Blackwell, people and culture director for Zen Internet

HR can play a leading role in helping employers prepare for these changes by updating company policies to reflect the new SSP entitlements and ensuring clear communication with employees about their rights. Additionally, HR can support people with health conditions by fostering a compassionate workplace culture, offering flexible working arrangements, and providing access to occupational health services, and other available benefits.

At Zen, we also have manager training in place so our people managers can recognise and accommodate the needs of employees by offering flexible working arrangements. By proactively addressing these changes, HR can help create a healthier, more productive workforce, ultimately benefiting both employees and employers.

Sarah Smith, policy and research officer for the Chartered Institute of Payroll Professionals

The main thing HR leaders can do is have understanding and empathy. In a fast-paced environment, it’s very easy to get lost in facts, figures and processes – that’s your world; you look at figures day in, day out. Sometimes people can lose sight of the magnitude of what they’re doing, and what they may perceive as a small amount of money. But that payment could make a massive difference to somebody’s family income. I’ve seen people lose sight of that.

Communicate. Ensure that you have policies and procedures in place, and that employees know and can see what’s in their contract, and what their entitlements are, if there is any entitlement over and above SSP.

Sandhya Iyer, managing director of consultancy, HR Dept

The introduction of day-one SSP to all workers and employees may seem like an additional burden to the SMEs. Having said this, a robust sickness management policy forms the bedrock of any well-managed capability process, regardless of the size of an organisation. An ideal approach must consider three main areas, specifically to manage those short-term ‘sickies’: a sickness reporting system, return to work meetings and a trigger system which will enable you to manage unacceptable sickness rates, through a formal capability process.

Illnesses and non-work-related injuries are unavoidable. Therefore, alongside having a robust capability management process, it is imperative that employers seek professional advice from occupational health, rather than rely solely on GP fit notes. This is mainly relevant for underlying medical conditions or longer-term illnesses. Introducing meaningful benefits such as a private medical insurance or an employee assistance programme will go further in empowering employees to manage their health and wellbeing.

 

This article was published in the March/April 2025 edition of HR magazine.

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