Pay for time off due to illness
Sick pay is when an employee's wages or salary are paid to them while they are unable to work due to illness.
What is Statutory Sick Pay?
Sick pay is divided into two categories: statutory sick pay ('SSP'), which most employees are entitled to get if they are unable to work, and contractual sick pay, which are earnings that an employee is entitled to receive if they are unable to work due to illness.
SSP, which is now £96.35 per week for up to 28 weeks, may be available to employees.
SSP is compensated in the following ways:
- for the days that an employee works on a regular basis ('qualifying days')
- deducting tax and national insurance in the same way as earnings are deducted on a regular pay day
When employees are eligible for sick leave, employers cannot force them to take yearly leave.
When an employee is sick for at least four days in a succession, SSP is paid (including non-working days, such as weekends). From the fourth 'qualifying day,' the employer should begin paying SSP. The first three qualifying days are known as 'waiting days,' and the employee is not paid SSP during this time unless they had been off sick and receiving SSP within the previous eight weeks.
When an employee returns to work or no longer qualifies for SSP, it typically ends.
When an employee meets the following criteria, they will be eligible for SSP:
- having a contract of employment (either written or verbal)
- having completed some work for them as part of their contract
- have been sick for four or more days in a row (including non-working days) - this is referred to as a 'period of incapacity for work.'
- a weekly wage of at least £120 (before tax)
- provide you with the proper notice
- after 7 days of being sick, provide you with documentation of their condition
SSP is still available to employees who have been paid for fewer than 8 weeks of work. To figure out how much SSP should be paid, use GOV.UK's sick pay calculator.
Sick pay based on a contract
If your firm has a sick pay plan, you can offer more; however, you cannot offer less. Company sick pay plans, often known as 'contractual' sick pay, are required to be included in an employee's employment contract.
When an employee is away due to illness, their contract may provide that they will be paid their regular salary (in which case SSP will not be required), or that they will be paid their regular salary less the amount of statutory sick pay. If the employee's contract does not provide for any contractual sick pay, the employee will only be eligible for SSP.
Some firm illness rules stipulate that the employer has the option of paying SSP instead of contractual sick pay. If an employee is confused about how their employer handles sick leave, they should review their company's Sickness policy.
The Data Protection Act of 2018 is something that employers should be aware of (DPA). The DPA is the major piece of legislation that puts the General Data Protection Regulations into action (GDPR).
Employers must follow the DPA's standards for processing personal data, which include being transparent and informing employees about their personal data and how it is used. When an employee starts work, employers can meet this responsibility by publishing a privacy notice outlining how data acquired to keep a record of absence and manage absence procedures is processed.
Data relating to an employee's health is considered a'special category' of data, which means it is treated according to certain criteria. If an employer has effective data protection and security policy in place, the DPA will allow them to process particular categories of data including criminal records for the purposes of completing responsibilities or exercising rights under employment law.
Are you seeking for assistance in reorganising your company? Our Accountants in Camberwell can help you protect your business with the correct guidance. Discuss your plans with us. Let us handle your losses, whether you're an employee or a private contractor. In Camberwell, you can get a tax planning service. When looking for efficient accountants in London, you know you want someone that is both cost-effective and professional.