On 6 April 2026, we will see one of the biggest reforms of statutory sick pay (SSP) in over a decade under the Employment Rights Act 2025. Whilst these changes will enhance employee entitlements and strengthen financial support for workers, they will bring substantial implications for employers and HR / payroll teams.
What’s changing?
The changes are designed to protect workers from financial hardship during sickness absence and boost long-term productivity:
- The 3-day waiting period will be removed so SSP will be payable from the first day of sickness absence.
- The lower earnings limit (LEL) will be removed, meaning all employees, regardless of earnings, will be eligible.
- SSP will be calculated at 80% of average weekly earnings or the statutory rate (£123.25 per week), whichever is lower.
What does this mean for employers?
The upcoming changes will present significant operational and financial implications for employers, requiring careful planning and proactive action. One of the most important implications is the potential for increased SSP costs, particularly with short-term absences that were previously unpaid due to the 3-day waiting period or earnings thresholds.
With wider eligibility, SSP will be payable to workers who were previously excluded, including low-paid, part-time, zero-hours and casual workers. This is likely to have a notable impact on sectors such as hospitality and retail which have a high proportion of seasonal or temporary roles.
How to prepare
- Update policies: Ensure absence policies and processes are updated for all employees to reflect the removal of the 3-day waiting period and amount to be paid, regardless of earnings or hours worked.
- Update payroll systems: Ensure the new calculation is applied to payroll systems and that SSP is paid from the first day of absence to all employees.
- Managing absence: Monitoring short-term sickness absence is essential to maintain productivity and manage costs. Analyse trends to identify recurring short-term absences which may uncover any underlying issues and implement interventions where necessary.
- Training: Ensure line managers are trained to accurately record and report sickness absence, conduct return-to-work interviews, recognise triggers and understand when reasonable adjustments may be required.
Return to work interviews
Return to work interviews are short, structured conversations held when an employee returns after a period of absence, even if just one day, and should not be treated as a simple tick box exercise. They can:
- Confirm the employee is fit to return to work.
- Highlight any adjustments or support required.
- Discourage avoidable time off.
- Spot patterns such as frequent short-term absences before they develop into bigger issues.
- Identify the root cause of absence which can help reduce the likelihood of repeated absence.
- Demonstrate that absence is taken seriously by the employer.
- Minimise disruption for colleagues who are required to step in to cover.
Outsourced HR support
SSP reforms will lower the threshold for taking time off when employees might otherwise attend work and remove financial penalties for short-term absence. As a result, short-term absences are expected to rise and employers across all sectors will likely see an overall increase in sickness absence days.
The time to prepare is now. Putting these actions into practice will help employers navigate the changes smoothly, ensuring compliance while fostering an engaged workforce that feels supported during sickness absence.
Implementing these new rules doesn’t have to be challenging with outsourced HR support. Whether it’s SSP compliance or any other HR, Employment Law or Health, Safety & Wellbeing issue, we are here to provide expert guidance and support.
If you’re looking to strengthen your absence management skills, explore our CPD-certified online courses including ‘Effective Absence Management’, providing interactive, bite-sized management and professional training from as little as £25 per employee, per course. Get in touch on 01942 727200 or email enquiries@employeemanagement.co.uk to find out more. We also have a range of factsheets available free download on our website, including managing persistent short-term absence and long-term ill health.