Let’s Talk About SSP (Statutory Sick Pay)
Remember Salt-N-Pepa's classic hit "Let's Talk About Sex"? Well, this week I'm channeling those vibes but with a distinctly less glamorous topic: 🎶 Let's Talk About SSP, baby. Let's talk about day one pay. Let's talk about all the good things and the bad things that may be... coming our way on April 6th. 🎶
(Sorry!)
The Calls Keep Coming
This week, my phone has been ringing off the hook and my inbox has been flooded with messages from concerned clients all asking the same thing: "How is this day one SSP right going to impact my business?"
And I get it. For many small businesses across West Sussex, Hampshire, and Somerset that we work with, this change feels seismic.
The Current Reality for Small Businesses
Here's the truth: a lot of SMEs don't have company sick pay schemes in place. Many small businesses have been quietly relying on the fact that Statutory Sick Pay only kicks in after a three-day waiting period. This has meant that when employees take the odd day or two off here and there, they simply don't get paid for it because they don't meet the waiting time requirements.
It's not ideal, but it's been a reality that small business owners have factored into their operational costs and planning.
What Changes on April 6th?
Under the new Employment Rights Act 2025, that waiting period disappears. From day one of sickness absence, employees will be entitled to SSP. Those one, two, or three-day absences? They're now going to be paid.
But there's another significant change that's flying under the radar for many businesses: the lower earnings limit is changing too.
Currently, if an employee doesn't meet the lower earnings limit (the minimum amount they need to earn to qualify for SSP), they don't get paid SSP at all. But from April 6th, employees who fall below that threshold will be entitled to 80% of their average weekly earnings as SSP.
For businesses employing part-time workers, casual staff, or lower-earning employees, this means people who were previously not entitled to any sick pay will now be covered. It's another layer of change that catches many small business owners by surprise.
The Real Impact on Small Businesses
Let's be honest about what this means:
The Financial Hit
For small businesses, every penny genuinely counts. This isn't a corporate entity with deep pockets absorbing costs across hundreds of employees. This is a business owner looking at their margins and wondering how to make this work. And now, not only are you paying SSP from day one, but you're also potentially paying it to employees who previously weren't even eligible.
The Double Whammy
I work with cleaning companies, hospitality businesses, salons, and service providers where clients are booked in and expecting service. Here's the problem: when an employee calls in sick, you still have to deliver that service. Which means you're likely paying someone else to cover. So you're paying for the absent employee through SSP AND paying for their replacement. The cost becomes significant very quickly.
The Management Challenge
Here's what keeps me up at night on behalf of my clients: it's those short-term, one or two-day absences that become really disruptive for small businesses. And the reality is that most small businesses are under-resourced. They don't have trained HR people keeping on top of absence management, conducting return-to-work interviews, maintaining proper records, or monitoring patterns. They don't have the time, the resources, or sometimes the skills to do this effectively.
The impact is going to be pretty big. And with April 6th approaching fast, we don't have long to prepare.
So What Can We Do About It?
The legislation isn't going anywhere. We can't fight against it. But what we can do is use this as an opportunity to tighten up our processes and get really clear on expectations. Here's where to start:
Get Crystal Clear on Your Absence Policy
Have a really clear reporting process in place. What exactly do you expect from your people when they need to report an absence? Who do they call? By when? What information do they need to provide? Remove any ambiguity.
Make Return-to-Work Meetings Non-Negotiable
Return-to-work meetings are one of the biggest deterrents for people taking those short one or two-day absences that might be more about hangovers than genuine illness. Why? Because you're having to eyeball them. You're having to have a face-to-face conversation. Make these standard practice for every single absence, no matter how short.
Log Every Single Absence
Don't leave it to chance or memory. Get a system in place. Tools like Breathe HR (which we work with extensively) offer a really simple and cost-effective way of managing and tracking absences. When you can see patterns emerging, you can address issues before they become major problems.
Train Your People Managers
This is crucial: you need to upskill the people in your business who manage others on how to deal with absence management human to human. ChatGPT can't have these conversations with your employees. Your managers need to know how to conduct return-to-work interviews with empathy but also with consistency. They need to understand when to escalate concerns and how to document conversations properly.
Adapt and Move Forward
This new legislation is here to stay. Rather than resisting it, let's use it as a catalyst to implement robust absence management processes that should have been in place anyway. When we manage absence well, we create healthier, more engaged teams and more sustainable businesses.
Need Support?
If you're feeling overwhelmed about reviewing your absence processes, implementing new systems, or training yourself or your team to handle these conversations effectively, that's exactly what we're here for.
At The People Consultancy, we've got resources, training, and hands-on support to help you navigate these changes without the stress. Get in touch, and let's make sure your business is ready for April and beyond.
We are running two free events to update you on all the changes and what actions you need to consider right now as a business owner who employs staff.
Registration is essential as places are limited.
Online (23rd February): https://luma.com/6aiz2912
In-person in Portsmouth (26th February): https://luma.com/lm78ff1u
