Statutory Sick Pay (SSP), Sickness and Fit Notes: A Comprehensive Guide

If you or someone you employ is unable to work due to illness or injury, you may be entitled to Statutory Sick Pay (SSP). SSP is a payment made by employers to their employees who are unable to work due to illness or injury. Understanding the rules around SSP is crucial to ensure that you are paying the correct amount and following the correct procedures. For more detailed guidance on managing employee payments and deductions, you can check out this guide to payroll and pensions.

To be eligible for SSP, an employee must have been off work for at least four days in a row, including weekends and bank holidays. The current rate of SSP is £116.75 per week and can be paid for up to 28 weeks. It is the employer’s responsibility to pay SSP to eligible employees and keep records of payments made. For tips on maintaining accurate financial records, visit this small business accounting guide.

If an employee is off work due to illness or injury, they may need to provide their employer with a fit note (formerly known as a sick note) from their doctor. A fit note provides information about the employee’s condition and how it affects their ability to work. It may suggest adjustments that could be made to enable the employee to return to work, such as a phased return or altered hours. Employers need to understand the role of fit notes in the SSP process and ensure that they are following the correct procedures.

Understanding Statutory Sick Pay (SSP)

Definition and Purpose of SSP

If you are an employee in the UK and you are too ill to work, you may be eligible to receive Statutory Sick Pay (SSP) from your employer. SSP is a payment made by your employer to help you cover your living expenses while you are unable to work due to illness or injury. The purpose of SSP is to provide financial support to employees who are unable to work due to sickness or injury, and to encourage them to take time off work to recover fully before returning to work.

Eligibility Criteria for SSP

To be eligible for SSP, you must meet certain criteria. First, you must be an employee and have done some work for your employer. Second, you must earn an average of at least £123 per week. Third, you must have been ill for more than three days in a row (including non-working days). Fourth, you must provide your employer with a fit note from your doctor if you are off work for more than seven days in a row. If you’re a contractor or freelancer, check out this article on working under IR35 and its impact on SSP.

SSP Rates and Payment

The current rate of SSP is £96.35 per week, and it is paid for up to 28 weeks. Your employer will pay you SSP for the days you would have worked, except for the first three days of your illness (known as ‘qualifying days’). You will not receive SSP for the first three qualifying days unless you have been off sick for more than seven days in a row and have provided your employer with a fit note. For more on tax implications and deductions, read about tax rates and allowances for 2023-24.

It is important to note that SSP is subject to tax and National Insurance contributions. Your employer will deduct these from your SSP payments before paying them to you.

The Role of Fit Notes

Understanding Fit Notes

A fit note (also known as a GP fit note or sick note) is a medical certificate issued by a healthcare professional that provides evidence of your fitness for work. It is used to help you return to work or to support your claim for Statutory Sick Pay (SSP) if you are unable to work due to illness or injury. The fit note replaces the old sick note and includes information about what you can do at work, rather than just what you cannot do.

Obtaining a Fit Note

If you are unable to work due to illness or injury for more than seven days, you should obtain a fit note from your doctor. You can also obtain a fit note from an allied health professional, such as a physiotherapist or occupational therapist, if they are treating you for your condition. The fit note will provide information about your condition and what you can do at work, such as reduced hours or modified duties.

Using Fit Notes for SSP Claims

If you are unable to work due to illness or injury and you need to claim SSP, you will need to provide your employer with a fit note. The fit note will provide evidence of your condition and the expected length of your absence from work. Your employer may also use the information in the fit note to make adjustments to your work, such as modified duties or reduced hours, to help you return to work sooner.

A fit note does not automatically entitle you to SSP. Your employer will need to assess your eligibility for SSP based on the information in the fit note and their own SSP policy. If you are not eligible for SSP, you may be able to claim other benefits, such as Employment and Support Allowance (ESA), if you are unable to work due to illness or injury.

Employer Responsibilities

As an employer, you have certain responsibilities when it comes to Statutory Sick Pay (SSP) and sickness and fit notes. Here are some of the key things you need to know:

Record Keeping and SSP Management

You are required to keep accurate records of all SSP payments made to your employees. This includes the dates of any periods of sickness, the amount of SSP paid, and the dates when payments were made. You must keep these records for at least three years.

It is important that you manage SSP correctly, as failure to do so can result in penalties from HMRC. You must ensure that you pay SSP to eligible employees, and that you do not pay it to those who are not entitled to it. You should also ensure that you pay the correct amount of SSP, which is currently £95.85 per week.

Dispute Resolution and SSP1 Form

If an employee disputes their entitlement to SSP, you should try to resolve the issue amicably. If this is not possible, the employee may submit an SSP1 form to HMRC. This form provides HMRC with details of the employee’s sickness and is used to determine their entitlement to SSP.

If you receive an SSP1 form from an employee, you must complete your section of the form and return it to HMRC within seven days. Failure to do so can result in penalties.

Holiday Entitlement During Sickness

Employees who are off sick continue to accrue holiday entitlement, and can take paid holiday during their sickness absence. However, they must give you notice of their intention to take holiday in the usual way.

If an employee is unable to take their holiday entitlement due to sickness, they may be able to carry it over to the next holiday year. However, you should check the rules around this, as there are certain circumstances where carry-over is not permitted.

Employee Rights and Obligations

As an employee, you have certain rights and obligations when it comes to Statutory Sick Pay (SSP), sickness, and fit notes. Here are some important things you need to know:

Evidence of Incapacity

If you are off sick for more than 7 days, you will need to provide a fit note from your doctor. This will provide evidence of your incapacity for work and help your employer determine whether you are eligible for SSP. Your employer may also require you to attend a medical assessment to determine your fitness for work.

Sick Leave and Returning to Work

If you are unable to work due to sickness, you may be entitled to SSP for up to 28 weeks. However, you must inform your employer as soon as possible that you are unable to work. You may also need to provide regular updates on your condition and expected return to work date.

When you are ready to return to work, you should inform your employer and provide a fit note from your doctor if required. Your employer must make reasonable adjustments to help you return to work, such as providing additional support or modifying your duties if necessary.

Financial Support Beyond SSP

If you are unable to work due to sickness for an extended period of time, you may be eligible for additional financial support beyond SSP. This may include Employment and Support Allowance (ESA) or Universal Credit.

ESA is a benefit for people who are unable to work due to illness or disability. It provides financial support and access to work-related support to help you return to work if possible.

Universal Credit is a means-tested benefit for people on a low income or out of work. It may provide additional financial support if you are unable to work due to sickness.

SSP Eligibility and Calculation

To be eligible for Statutory Sick Pay (SSP), you must meet certain criteria. The following subsections will outline the requirements for SSP eligibility and calculation.

Qualifying Days and Waiting Period

To qualify for SSP, you must have been ill for at least four days in a row, including weekends and bank holidays. These are known as qualifying days. The first three days of your illness are not qualifying days and are known as waiting days. You will not receive SSP for waiting days.

Linking Periods of Incapacity for Work

If you have more than one period of incapacity for work (PIW) within a period of eight weeks, these periods may be linked together. This means that you will only receive SSP for one period of incapacity for work. The linking period is four days.

National Insurance Contributions and SSP

To be eligible for SSP, you must be an employee and earn at least the lower earnings limit (LEL) for National Insurance contributions. Your employer must also pay Class 1 National Insurance contributions for you. If you are not eligible for SSP, your employer may still pay you contractual sick pay.

The rate of SSP is £96.35 per week (as of 2021/2022 tax year) for up to 28 weeks. If you earn less than £96.35 per week, you will receive SSP at the same rate as your earnings.

Special Situations and Considerations

SSP During the Covid-19 Pandemic

If you are unable to work due to COVID-19, you may be eligible for Statutory Sick Pay (SSP). This includes if you are self-isolating because you or someone in your household has symptoms of COVID-19, or if you have been advised to self-isolate by NHS 111 or a healthcare professional. You may also be eligible for SSP if you are clinically extremely vulnerable and have been advised to shield.

To be eligible for SSP, you must earn at least £120 per week and have been off work for at least four days in a row (including non-working days). If you are eligible, you can receive SSP for up to 28 weeks.

SSP for Self-Employed Individuals

If you are self-employed, you may be eligible for SSP if you have been paying Class 2 and/or Class 4 National Insurance contributions. To be eligible, you must have been off work for at least four days in a row (including non-working days) due to illness or self-isolation. You can receive SSP for up to 28 weeks.

Appealing SSP Decisions

If you believe that you have been unfairly denied SSP, you can appeal the decision. You should first speak to your employer and try to resolve the issue informally. If this does not work, you can contact HM Revenue and Customs (HMRC) for advice.

The rules around SSP are subject to change in response to the coronavirus pandemic, so make sure to regularly check government guidelines for the latest information on SSP and COVID-19.

Additional Financial Support Options

If you are unable to work due to illness or injury, Statutory Sick Pay (SSP) may not be enough to cover your living expenses. Fortunately, there are additional financial support options available to you.

Universal Credit and SSP

If you are receiving SSP but it is not enough to cover your living expenses, you may be able to claim Universal Credit. Universal Credit is a means-tested benefit that provides financial support to people who are on a low income or who are out of work. You can claim Universal Credit if you are over 18 and under State Pension age, and you are on a low income or out of work.

If you are claiming Universal Credit and SSP at the same time, your SSP will be taken into account when your Universal Credit payment is calculated. This means that your Universal Credit payment may be reduced if you are receiving SSP.

Employment and Support Allowance

If you are unable to work due to illness or injury and you are not eligible for SSP, you may be able to claim Employment and Support Allowance (ESA). ESA is a benefit that provides financial support to people who are unable to work due to illness or disability.

To be eligible for ESA, you must be under State Pension age and have a health condition or disability that affects your ability to work. You will also need to have paid enough National Insurance contributions to qualify for the benefit.

Other Sickness Allowances and Benefits

In addition to SSP, Universal Credit, and ESA, there are other sickness allowances and benefits that may be available to you. These include:

• Incapacity Benefit: This is a benefit that provides financial support to people who are unable to work due to illness or disability. It has now been replaced by ESA, but some people may still be receiving Incapacity Benefit.
• Other welfare system benefits: Depending on your circumstances, you may be eligible for other welfare system benefits such as Housing Benefit or Council Tax Reduction.

There may be deductions taken from your SSP payment. These deductions can include things like tax and National Insurance contributions. You should also be aware of the minimum income floor if you are self-employed and claiming Universal Credit.

Legal Framework and Government Guidance

SSP Regulations and Compliance

As an employer, you have a legal obligation to provide Statutory Sick Pay (SSP) to your eligible employees. The SSP scheme is governed by regulations that are set out in the Social Security Contributions and Benefits Act 1992. To be eligible for SSP, employees must meet certain qualifying conditions, such as earning at least £120 per week and notifying you of their sickness within a specified time limit. Failure to comply with the regulations could result in penalties or legal action.

HMRC Guidelines for SSP

HM Revenue and Customs (HMRC) provides guidance on the administration of SSP. You should familiarise yourself with these guidelines to ensure that you are complying with the rules. The guidelines cover topics such as qualifying conditions, record-keeping requirements, and national insurance deductions. HMRC also provides guidance on how to deal with statutory payment disputes and how to claim back SSP if you have overpaid it.

Time Limits and Record-Keeping Requirements

As an employer, you must keep accurate records of SSP payments. This includes the dates of sickness, the amount of SSP paid, and the employee’s qualifying days. You also need to record any fit notes provided by the employee. These records must be kept for at least three years and made available to HMRC if requested. Complying with these record-keeping requirements is important to avoid penalties or legal action.