Statutory Sick Pay (SSP) is a government-mandated payment provided by employers to eligible employees who are unable to work due to illness. It ensures a basic level of income during periods of incapacity. However, the requirement to pay SSP is limited. There are clear rules and employers must be aware of them to make sure they comply.
How long must you pay SSP?
SSP stops when an employee either returns to work or no longer qualifies for it for any of these 5 reasons:
- SSP ends after 28 weeks for each ‘period’ of incapacity for work
- If the employee has a continuous series of linked absences lasting more than 3 days each (which are 8 weeks or less apart) for more than 3 years
- If your employee starts receiving maternity or adoption pay
- If your employee resigns or is dismissed (unless the reason for termination is to avoid SSP liability)
- If an employee is arrested, imprisoned or taken into legal custody you are longer obliged to pay SSP.
Advice for employers – Keep records
While there is no legal requirement to keep specific SSP records, we advise employers to keep accurate documentation because you may need to provide evidence to HMRC, particularly in cases of disputes.
Suggested approaches include:
- Completing the record keeping SSP2 form
- Maintaining form P11 or equivalent payroll records, as these are often requested by HMRC to confirm SSP payments.
What if your employee is NOT eligible for SSP?
If your employee is not eligible for SSP, or their entitlement ends, you must notify them using an SSP1 form which enables your employee to apply for Universal Credit or Employment and Support Allowance (ESA).
- Give the form to your employee within 7 days of their first sick day (if they are ineligible from the outset).
- By week 23 of SSP (if it will end before their return to work).
- Within 7 days of SSP ending unexpectedly while they are still off sick.
By understanding these rules, maintaining clear records, and issuing the necessary forms, employers can ensure compliance with SSP regulations while supporting their employees effectively.
Further reading
- Statutory Sick Pay (SSP) : Overview – GOV.UK
- Employer form SSP1: Statutory Sick Pay and an employee’s claim for benefit – GOV.UK
- Statutory Sick Pay: record sheet (SSP2) – GOV.UK
- P11 (2013) deduction Working sheet P11
- Government reviews statutory sick pay for low earners – Hunter Law
- Employment Rights Bill – Top 8 significant changes – Hunter Law
- Government announces new statutory rates for family leave and sick pay – Hunter Law
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