16 October 2024
There are a number of key employment changes coming from the Employment Rights Bill, however, one that will specifically impact payroll processing is changes to how we operate Statutory Sick Pay (SSP).
Removal of Waiting Days
The first change in this area to discuss is the removal of waiting days. This means that any time off from work is now deemed as a period for incapacity for work. We therefore will not need to track these periods for payroll processing as much as previously, as SSP will be paid from day one, linked periods are no longer needed to establish entitlement.
This does represent a slight reduction in administrative burden. But wait for it, there is more.
Changes to SSP Employee Eligibility
In addition to being paid from day one, SSP will also be payable to all employees, including those paid under the Lower Earnings Limit, the rate may be different depending on their earnings. The Social Security Contributions and Benefits Act (SSCBA) 1992 section 157 will be amended to state:
The weekly rate or statutory sick pay that an employer must pay to an employee is the lower of -
(a) £116.75, and
(b) the prescribed percentage of the employee’s normal weekly earnings.
From this we can see that additional calculations will be required for lower earners who may not have earnings high enough to qualify for the full rate of SSP. This looks like it may operate in the same way that average weekly earnings calculations for Statutory Maternity Pay (SMP) does. However, the exact percentages and mechanisms have not been decided or portrayed to us.
DWP Arranging SSP Consultation
The department for Work and Pensions (DWP) and the Department for Health and Social Care (DHSC) join work and health directorate have reached out the CIPP policy team. They have informed us that a consultation is imminent, and they are prepared to hold a Think Tank with our members in the near future. If you are a full, fellow or Chartered member, keep an eye out for an invite soon.
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