Employment Rights Bill Hub:
Essential Insights for Compliance & Success

The Employment Rights Bill removes the lower earnings limit for Statutory Sick Pay (SSP) and abolishes the three-day waiting period. From 2025, all eligible workers will receive SSP from the first day of absence, regardless of how much they earn.

The reforms are expected to take effect in 2025, although the precise date will be confirmed after the final reading of the Employment Rights Bill. Businesses should start preparing their payroll systems and policies now.

The biggest impact will be on:

• Low-paid employees (previously earning below the lower earnings limit).
• Part-time or casual workers who were not previously eligible for SSP.
• Workers will now qualify for sick pay from their first day of illness, not after a 3-day waiting period.

Yes. Many zero-hours and casual workers who previously earned under the threshold will now be entitled to day-one SSP, provided they meet the basic SSP eligibility criteria (e.g., employment contract, illness, and reporting the absence properly).

The rate of SSP remains unchanged under the reforms. In 2025, the standard rate is expected to remain around £116.75 per week (or the government’s updated figure), but businesses will need to apply this from day one of sickness instead of after 3 days.

SMEs may face:

• Higher short-term sickness absence costs.
• Increased payroll administration (e.g., processing more SSP claims).
• More absences reported from employees who previously couldn’t afford to take time off unpaid.

• Update your sick pay policy to reflect day-one entitlement.
• Review your payroll systems to ensure SSP kicks in immediately.
• Train managers on the updated rules and absence reporting procedures.
• Communicate clearly with employees to avoid confusion.

Failure to comply with SSP changes could result in:

• Legal penalties for non-payment.
• Increased risk of employment tribunal claims.
• Reputational damage as an employer, affecting recruitment and retention.

Yes. The SSP reforms apply to the statutory minimum entitlement. SMEs may still choose to offer enhanced company sick pay schemes on top of SSP, but you must ensure statutory sick pay is applied correctly first.

Yes. The SSP rules for providing fit notes (sick notes) remain unchanged. Employees can self-certify for up to 7 days, after which a medical certificate is required to continue receiving SSP.