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It can be an uncomfortable subject for some, but it’s important that employers are aware of long-term sick pay requirements - and that employees know their rights.
With that in mind, we’ve rounded up the details of long-term sick pay, so everyone can know where they stand.
What is long-term sick pay?
Long-term sick pay refers to the financial support that someone can receive from their employer, when illness or injury means they’re unable to work for an extended period. In the UK, there are a few different options that both employers and employees should be aware of.
Statutory Sick Pay
Statutory Sick Pay (SSP) is the minimum legal requirement for sick pay in the UK. SSP is paid to employees who are too ill to work, provided they meet certain eligibility criteria. Since April 2024, SSP is paid at a flat rate of £109.40 per week, although this is subject to change each year.
To qualify for SSP, the following conditions must be met:
- The employee must have an employment contract with the company, and have done some work under that contract
- They must have been off sick for more than three days in a row
- The employee must earn at least £123 per week (as of April 2024)
- The illness or injury must be genuine, and the employee must provide medical evidence (such as a doctor's note) if required by the employer
SSP is generally paid for up to 28 weeks. After this period, employees who are still unable to return to work may need to explore other options for support, such as employer-provided sick pay, private health insurance, or government benefits like Employment and Support Allowance (ESA).
After Statutory Sick Pay
After the 28-week SSP period expires, employees who still aren’t able to return to work may not be eligible for further SSP. It’s a worrying situation, but there are still options available.
Employer sick pay
Some companies offer sick pay schemes that go beyond the SSP minimum, giving employees another option. But these are not guaranteed in every business, and many will choose to stop paying sick pay after a certain period.
Employment and Support Allowance (ESA)
ESA is a government benefit designed to support people who are unable to work due to illness or disability, giving people an option if they’ve used up their SSP allowance.
There are two types of ESA:
- Contributory ESA: Based on National Insurance contributions, typically for people who have paid enough contributions during their working life.
- Income-related ESA: For individuals who have limited savings and income.
Employees can apply for ESA once their SSP ends, and they may be entitled to receive a payment based on their circumstances.
Personal injury or disability insurance
Some employees may have taken out personal injury or disability insurance that can provide an additional income in the event of long-term illness or injury. These policies vary, so it’s important to review exactly what coverage they offer.
Long-term sick pay schemes
As we mentioned, lots of employers offer sick pay schemes that go beyond the statutory minimum. This is often called Contractual Sick Pay (CSP) and is a benefit that many employers offer as part of the employment contract.
It’s usually more generous than SSP and can vary widely between employers. Some employers may offer full pay for a set period, while others may offer a percentage of regular pay for a longer period.
The duration of CSP depends on the employer's policy. Some businesses provide sick pay for a limited period, while others offer it for up to a year or more. After this, employees might transition back to SSP, or the employer may cease paying any sick pay.
Returning to work
Returning to work after a long-term illness or injury can be challenging, both for the employee and the employer. So it’s important to approach the return with sensitivity and care.
Occupational health assessments
In some cases, an employer may request an occupational health assessment to determine if the employee is fit to return to work.
This is typically done in consultation with the employee, and the assessment will take into account the employee's medical condition, the requirements of the job, and any necessary adjustments.
Phased return
If both the employer and employee feel they should return to work, this is often done in a phased way, where the employee gradually increases their hours and shift patterns over time. This helps stop the employee getting overwhelmed and allows them to adjust back into their routine, while making sure they’re still well-supported during recovery.
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