22 July 2019

The government is consulting on new measures to make the lowest paid workers eligible for Statutory Sick Pay. Statutory Sick Pay is currently £94.25 a week for a maximum of 28 weeks during a three-year period after an employee has been off work sick for 4 or more days in a row, including non-working days. Statutory annual leave is accrued while the employee is off work sick, not matter how long they are off work.

However, only those earning the lower earnings limit of at least £118 per week, are eligible for Statutory Sick Pay. Two million people, particularly part-time workers, earn less than that. The consultation will consider lowering the threshold at which employees are eligible, and how long Statutory Sick Pay should last.

The consultation will also look at ways of encouraging people who have had a period of long-term sick leave back into work. According to the Department for Work & Pensions and the Department of Health & Social care, around 100,000 people never return to work after a sickness absence. Small businesses may be given a sick pay rebate if they support their employee back into work.

Hilary Hall comments, "We agree that it is important for salon owners to retain their staff after a period of sickness, especially as it is currently so hard to recruit qualified and experienced staff. However, part-time working is very common within the hair and beauty sectors. Reducing the earnings needed to qualify for Statutory Sick Pay, and therefore bringing more people into scope, will have an impact on costs for employers. This is extremely challenging at a time when other employment-related costs are rising year on year, including wages and pensions.”