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Sick Pay, starting from scratch

Toria

Hi all - I wonder if someone in the know could help?

We are a quick-growing start up, just getting to grips with all of our policies and procedures. I'm nearly there but want to get my knowledge/facts right on sick pay. At the moment our old generic employment contracts state the following:

"During such absence the Employer will pay the Employee as contractual sick pay, the difference between the Employee's statutory sick pay and the employee's full pay, thereby bringing the Employee's wage up to the level of full pay, provided the Employer will pay a maximum of £5,500.00 (GBP) to the Employee as contractual sick pay in any 12-month period, the period commencing on the first day for which the Employee is paid contractual sick pay. Any statutory sick pay will be calculated on the basis of the Employee's usual work days, being Monday to Friday"

I have many questions!

1. Am I right in thinking that the government no longer pay SSP? But that this government-stated rate now has to come from the company? So our statement above no longer makes sense?

2. Is Contractual sick pay a figure the company chooses? 

3. When does SSP or contractual start? How long does someone have to be sick for before it kicks in.

Thank you so so much for your help and apologies for our complete ignorance!

Best regards

Toria

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  • Welcome to the communities

    I have never ever seen contractual sick pay described as a financial amount before - its very odd. I am not sure what behaviour it will drive doing it that way or what you gain - but it seems very complicated.

    Sick pay is usually described as X days / weeks / months

    Most smaller organisations would pay somewhere between 0 and 4 weeks sick pay with many at the bottom end

    SSP as in the notes above doesn't start till day 3 - a few organisations apply this to OSP but usually where they have short term absence issues (often retail)

    I think you ought to really think through the culture you want to achieve as OSP plays some part in setting this
  • in reply to Keith
    Hi Keith - thank you. Those are really useful comments. As you can see we are starting blind. And interesting to know that it is normally done in 'time' rather than amount. I am not sure where that original detail comes from. Possibly an accountant. Thanks again, I will arrange to involve the directors.
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  • in reply to Keith
    Hi Keith - thank you. Those are really useful comments. As you can see we are starting blind. And interesting to know that it is normally done in 'time' rather than amount. I am not sure where that original detail comes from. Possibly an accountant. Thanks again, I will arrange to involve the directors.
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