The Entitlement
When an employee is incapacitated for work due to illness or injury, their right to continued remuneration depends on statutory provisions and their contract of employment:
- Statutory Sick Pay (SSP): Under the Social Security Contributions and Benefits Act 1992 and the Statutory Sick Pay (General) Regulations 1982, eligible employees who earn at least the Lower Earnings Limit (LEL) are entitled to receive SSP. It is payable from the fourth "qualifying day" of incapacity (after three unpaid waiting days) for up to 28 weeks.
- Contractual / Occupational Sick Pay (CSP/OSP): Many UK employers provide enhanced contractual sick pay schemes that offer full or partial salary continuation for defined periods (for example, full pay for four to twelve weeks, tapering to half pay). Contractual sick pay operates alongside SSP, with SSP typically being offset against or included within the enhanced contractual payment.
Employees may self-certify their sickness absence for the first seven calendar days. From the eighth day of absence onwards, medical evidence in the form of a Statement of Fitness for Work (a "fit note") issued by an authorised healthcare professional is required to maintain entitlement.
Linked Periods of Incapacity (Recurring Illness)
Under UK SSP rules, if an employee has two or more periods of sickness absence separated by eight weeks (56 calendar days) or less, and each period lasts for at least four consecutive days, these absences are treated as linked Periods of Incapacity for Work (PIWs):
- Waiting Days: If the three waiting days were already served during the initial period, the employee does not need to serve them again for a linked absence; SSP is payable from day one of the subsequent absence.
- Maximum 28-Week Limit: The total duration of linked periods is cumulative. Once the combined linked absences reach the statutory ceiling of 28 weeks, SSP entitlement is exhausted. The employer must then issue form SSP1 to enable the employee to apply for state benefits, such as Employment and Support Allowance (ESA).
If an employee is absent with an independent illness after more than eight weeks have elapsed since their last sick leave, a new, unlinked PIW begins, requiring fresh waiting days and resetting the 28-week counter.
Calculation
The calculation of continued pay varies according to the applicable scheme:
- Statutory Sick Pay: SSP is paid at a fixed statutory weekly rate (set annually by the UK Government) and pro-rated across the employee’s agreed qualifying days in their normal working week.
- Contractual Sick Pay & Loss-of-Pay Principles: Where contractual schemes provide full or partial continued wages, employers must pay the remuneration the employee would have received had they been working, including regular contractual allowances.
- Irregular & Variable Hours: For workers with variable hours, calculating entitlement thresholds (such as the average weekly earnings test for SSP eligibility) requires analysing earnings over an eight-week relevant period prior to the absence. Reliable, compliant digital time tracking and payroll records are essential for calculating these averages accurately.
Further Instances of Continued Remuneration
Beyond sickness absence, UK employment law governs several other categories where remuneration continues during non-working periods:
- Statutory Annual Leave: Under Regulations 13 and 13A of the Working Time Regulations 1998, workers are entitled to 5.6 weeks of paid statutory annual leave (28 days for a full-time employee). Holiday pay must reflect "normal remuneration", including regular overtime, commission, and allowances, calculated over a 52-week reference period for variable-hour staff.
- Public & Bank Holidays: Payment for bank holidays depends on the contract of employment; employers may include bank holidays within the statutory 5.6-week holiday entitlement.
- Time Off for Dependants & Compassionate Leave: Under Section 57A of the Employment Rights Act 1996, employees have a statutory right to reasonable unpaid time off to handle unexpected emergencies involving dependants. Many employers choose contractually to provide paid compassionate or bereavement leave (alongside statutory provisions such as Statutory Parental Bereavement Pay).
- Statutory Family-Related Leave: Statutory payments also apply under defined rules for Maternity, Paternity, Adoption, and Shared Parental Leave.
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