In April 2026, proposed new legislation on Statutory Sick Pay (SSP) is coming into force. SSP will apply from the first day of sickness absence.
As we all know, currently SSP is not paid for the first three qualifying days of a sickness absence, and these days are known as waiting days. To be eligible for SSP, the employee/worker must be sick for a period of incapacity which is at least four consecutive days.
This means that employers will be required to pay SSP from the first day of absence.
With current sickness absence rates at a record high, it is reported that the change to sick pay in 2026 is going to impact further, with potentially more employees taking sick leave.
The cost to UK businesses each year is reported to be in billions.
Having a robust sickness absence process in place to manage sickness absence levels in the workplace is going to be even more vital. In addition, a more proactive approach to sickness absence fosters a culture of support, tackling short and long term absence, and improves wellbeing. Applying improved processes into the business now will help to reduce any impact following the changes in 2026.
What businesses can do?
- Monitor sickness absence rates and the reasons for absence. If the company does not have a platform for reporting absence then Breathe HR provides a cost effective platform
- Conduct ‘Return to work interviews’ to support the employee returning back into the workplace, and to pick up on any triggers/trends e.g. Bradford factor trigger, trends of repeat days of absence.
- Utilise the companies resources for medical guidance e.g. health insurance, Employee Assistance Programme, Occupational Health.
Training line managers to identify triggers and trends of sickness absence will support the management of the process and embed the culture.
Making changes
The legislation provides for the removal of the lower earnings limit, which means that employees will be eligible for SSP even if they earn less that the previous threshold (£125). Payroll systems will need to reflect the changes to the legislation.
Company policies e.g. sickness absence, and employment contracts that reflect the waiting days and lower earnings limit will need to be updated in 2026 following the legislation coming into force.
Do not wait for 2026 to update your internal practices on monitoring sickness absence. The company will benefit from training line managers now, to embed a culture recognising the support that employees may need to manage a medical condition and also to recognise the processes associated in reducing sickness absence levels.
To discuss improvements on managing sickness absence in the business, reach out to our team of HR Consultants on 0345 646 0406 or fill in our online enquiry form and we will be in touch.