Statutory Sick Pay: What Small Employers Need to Know

Statutory Sick Pay, commonly known as SSP, is one of those employer obligations most business owners have heard of but don't always fully understand until they're dealing with it in practice. Getting it wrong - paying the wrong amount, applying it from the wrong date, or missing eligibility criteria - is one of the more common payroll errors among small employers, so it's worth having a clear grasp of how it actually works.

Who Is Eligible

Employees are eligible for SSP if they're classed as an employee and have done some work for you, are sick for four or more consecutive days including non-working days, earn at least the Lower Earnings Limit on average, and have properly notified you of their sickness in line with your normal notification process. It's worth noting that the four-day qualifying period includes weekends and days the employee wouldn't normally work, provided the sickness itself is genuinely continuous across that period - a common misunderstanding is only counting scheduled working days towards the threshold.

The Waiting Days Rule

SSP isn't payable for the first three "waiting days" of a period of sickness, meaning payment effectively starts from the fourth qualifying day of absence, assuming the employee remains off sick for at least four days in total. If an employee has had a linked period of sickness within the previous eight weeks - broadly, a second spell of sickness close enough to the first to be treated as connected - waiting days may not apply again, and SSP can start from the first day of the new absence instead. This linking rule is one of the more commonly missed details in SSP administration, particularly for employees with recurring health conditions leading to intermittent short absences.

How Long It Lasts

SSP can be paid for up to 28 weeks of sickness absence, at a flat weekly rate set by the government and reviewed each April, pro-rated for the employee's normal working pattern. It's paid through payroll in the same way as normal wages, with tax and National Insurance deducted as usual, rather than as a separate benefit payment. Once the 28-week entitlement is exhausted, an employee may be able to claim Employment and Support Allowance directly from the Department for Work and Pensions instead, and it's good practice to make sure affected employees are aware of this well before their SSP entitlement runs out.

Notification and Evidence Requirements

Employers can set their own reasonable rules for how and when employees should notify them of sickness, provided those rules are communicated clearly in advance, typically through a staff handbook or contract of employment. For absences of more than seven days, employees are usually asked to provide medical evidence, commonly a fit note from a GP, though you cannot insist on medical evidence for the first seven days of an absence - self-certification is sufficient for shorter periods, and requiring more than that isn't in line with the rules.

Common Mistakes Small Employers Make

A handful of errors recur regularly among small employers managing SSP without dedicated HR support. Applying waiting days incorrectly when a linked period of sickness should mean they don't apply again. Failing to keep adequate records of sickness absence, which becomes a genuine problem if an employee later disputes what they were paid, or if HMRC queries your SSP calculations. And treating every absence the same regardless of pattern, rather than recognising when frequent short absences might indicate an underlying health issue worth discussing with the employee directly, separate from the pay calculation itself.

Keeping Records That Actually Hold Up

Good SSP administration comes down to consistent, contemporaneous record-keeping - noting when an absence was reported, what evidence was provided and when, and how the qualifying days and waiting days were calculated for each case. Doing this properly at the time an absence occurs is far easier, and far more reliable, than trying to reconstruct the detail later if a query or dispute arises.

Beyond the Statutory Minimum

It's worth remembering that SSP is a legal minimum, not necessarily what your business has to offer. Many employers choose to provide enhanced company sick pay on top, particularly to support staff retention and wellbeing, and if your business does this, it's important that your payroll and HR processes clearly distinguish between the statutory element and any additional company scheme, since the rules and record-keeping requirements differ between the two. If you're reviewing your sickness policy or want help making sure your SSP process is compliant, we're happy to talk it through.