A Revolution in Statutory Sick Pay (SSP)

The Employment Rights Act 2025 is set to fundamentally reform Statutory Sick Pay (SSP), expanding eligibility to thousands of workers and increasing costs for employers. These changes are expected to take effect from April 2026.

Is Your Business Ready for the Biggest Shift in Employment Law?

What's New?

  • End of Waiting Days: The three "waiting days" before SSP becomes payable will be removed. SSP will be payable from the first qualifying day of absence.

  • Removal of the Lower Earnings Limit (LEL): The requirement for a worker to earn above the LEL (currently £129 per week) to qualify for SSP will be abolished.

  • New Payment Rate for Lower Earners: All workers will be entitled to SSP. Those earning below the LEL will receive a rate of 80% of their weekly earnings or the standard flat rate of SSP, whichever is lower.

These reforms mean more staff will be eligible for sick pay from their very first day of absence, representing a significant new cost for businesses.

Solid speech marks

How to Prepare

  • Update your Sickness Absence Policy: Your policy must be updated to remove waiting days and reflect the new eligibility criteria.

  • Budget for Increased Costs: Model the financial impact of increased SSP eligibility and payments from day one.

  • Strengthen Absence Management: With SSP becoming a day-one right, robust procedures for managing and monitoring sickness absence are more critical than ever.

placeholderImage

Manage Absence and Compliance with CIPD HR-inform Pro

The new SSP rules require immediate attention. CIPD HR-inform Pro provides the updated policies, absence management tools, and expert guidance you need to control costs and ensure compliance from day one.

Employment Rights Act 2025 Download a summary

After more than a year of debate, the Employment Rights Bill became law on 18 December 2025 as the Employment Rights Act 2025. This is the biggest shake-up of employment law in a generation, with over 28 changes rolling out between December 2025 and into 2027. While this phased approach to the reforms gives employers time to prepare, now is the moment to get ahead. Explore what’s changing and what it means for your organisation, including key updates on sickness absence, paternity leave, parental leave, trade union access, and more.

download-a-summary.webp

Prepare for the Employment Rights Act 2025

The Employment Rights Act 2025 ushers in the most significant changes to UK employment law in a generation. Our CIPD HR-inform Pro product service is designed to be your essential guide, providing comprehensive resources, expert advice, and practical tools to ensure your business remains compliant and agile.