Statutory Sick Pay (SSP) is a crucial financial support system designed to assist employees who are too ill to work. However, not every worker is eligible to receive SSP, and understanding the rules can be complex.
Employers and employees alike must be aware of the circumstances in which SSP might not apply to avoid confusion and ensure proper compliance with employment laws.
In this article in what circumstances would an employee not qualify for ssp, we will break down who qualifies for SSP, the specific situations where an employee may not be eligible, and the alternative support options available for those who cannot claim it.
What Is Statutory Sick Pay (SSP) and How Does It Work?
Statutory Sick Pay (SSP) is a mandatory employer-paid benefit in the UK that provides financial assistance to employees who are unable to work due to illness.
Unlike workplace-specific sick pay schemes, SSP is a legal requirement, meaning all employers must comply with the scheme if their employees meet the eligibility criteria.
How SSP Applies to Employees?
Employees who meet the eligibility criteria are entitled to receive SSP from their employer after being off work for at least four consecutive days (including weekends and non-working days).
Some key points about how SSP works include:
- Employers cannot refuse to pay SSP if an employee qualifies.
- The standard SSP payment rate (as of April 2024) is £116.75 per week.
- Employees can receive SSP for up to 28 weeks.
- SSP is not means-tested, meaning income or savings do not affect eligibility.
- The employer pays SSP in the same way as wages, through payroll and with tax and National Insurance deductions applied.
Recent Updates to SSP in the UK
The UK government reviews SSP regulations periodically, and businesses must stay updated with any policy changes. For example, temporary changes were introduced during the COVID-19 pandemic, allowing employees to claim SSP from the first day of sickness. However, this rule no longer applies.
Who Is Eligible for SSP in the UK?
To qualify for SSP, an employee must meet specific criteria. If they fail to meet any of these conditions, they may not be eligible.
Minimum Earnings Threshold
- An employee must earn at least £123 per week before tax to be eligible for SSP.
- This includes part-time workers, agency staff, and those on flexible contracts, as long as their earnings meet the required threshold.
Employment Status
- SSP applies only to employees.
- Self-employed workers are not eligible.
- Agency workers and zero-hour contract employees may qualify, but only if they meet the earnings and employment duration requirements.
Duration of Sickness Absence
- Employees must be off work for at least four consecutive days (including weekends and non-working days).
- The first three days are unpaid, unless the employer offers additional benefits.
- From the fourth day, SSP payments begin.
Notification Rules
- Employees must inform their employer within the required timeframe set by the company.
- A sick note from a doctor is only needed if the absence lasts longer than seven days.
If an employee meets all the above conditions, they should be entitled to SSP. However, there are several exceptions where an employee may not qualify.
In What Circumstances Would an Employee Not Qualify for SSP?
While Statutory Sick Pay (SSP) provides crucial financial support for employees unable to work due to illness, not everyone qualifies. There are specific legal and employment-related conditions that determine whether an individual is eligible.
Here’s a detailed breakdown of the most common circumstances where an employee would not qualify for SSP:
Earning Below the Minimum Threshold
- To qualify for SSP, an employee must earn at least £123 per week before tax.
- This is known as the Lower Earnings Limit (LEL), and it applies regardless of whether an employee works full-time, part-time, or on a zero-hour contract.
Who Is Affected?
- Low-paid workers: Employees earning less than £123 per week do not meet the SSP earnings threshold.
- Casual or irregular workers: Some zero-hour contract workers may not meet the earnings limit.
- Apprentices and trainees: Those on low-wage training schemes may fall below the LEL.
What Can They Do?
- If an employee earns below the threshold, they may be eligible for Universal Credit or Employment and Support Allowance (ESA) instead.
- Employers must issue an SSP1 form if an employee is ineligible due to low earnings.
Short-Term or New Employment
- Employees must have started work before they can qualify for SSP.
- If an employee has not worked at least one full day under their contract, they may not be entitled to SSP.
Examples:
- A new employee calls in sick on their first day: They are not eligible because they haven’t completed a full working day.
- A temporary worker hired for a short period (e.g., a one-week contract): They may not qualify if their employment period ends before they meet the SSP eligibility criteria.
Employer Responsibility
- If an employee has worked at least one full day, they may still be entitled to SSP.
- Employers should check employment records and provide guidance to employees who do not qualify.
Self-Employed Workers and Freelancers
- SSP only applies to employees. Self-employed individuals, freelancers, and gig workers do not qualify for SSP, as they are not on an employer’s payroll.
Why Are Self-Employed Workers Excluded?
- Self-employed workers do not pay Class 1 National Insurance contributions (which fund SSP).
- They are responsible for their own sick pay and must rely on personal savings or insurance.
Alternative Support Options
- Employment and Support Allowance (ESA): Self-employed workers who are too ill to work may qualify for ESA if they meet the National Insurance contributions requirements.
- Universal Credit: If a self-employed worker’s income is too low due to illness, they may apply for financial support through Universal Credit.
Certain Exempt Worker Categories
- Some employees are automatically excluded from SSP eligibility due to the nature of their work or legal status.
Who Is Exempt?
- Members of the armed forces: Military personnel have their own sick pay schemes.
- Share fishermen: Those who work independently and share profits rather than earning a salary.
- Employees working abroad: If an employee is not paying UK National Insurance contributions, they may not qualify.
- Prisoners and those in police custody: Individuals serving a sentence or detained by authorities do not qualify for SSP.
Employer Responsibility
- Employers should check if an employee falls under an exempt category and inform them of alternative options, if available.
Receiving Other Benefits That Overlap with SSP
- Employees already receiving certain government benefits may not be eligible for SSP, as they cannot receive both payments at the same time.
Which Benefits Affect SSP Eligibility?
- Statutory Maternity Pay (SMP): Employees on maternity leave cannot claim SSP during the paid period of maternity leave.
- Employment and Support Allowance (ESA): If an employee is already receiving ESA, they cannot claim SSP for the same period of illness.
- Incapacity Benefits: Some long-term sickness benefits may override SSP eligibility.
What Can Employees Do?
- If an employee is on maternity leave but falls ill, they will continue to receive Statutory Maternity Pay (SMP) or Maternity Allowance instead of SSP.
- Employees on long-term sick leave may transition from SSP to ESA once SSP payments stop.
Late SSP Claims
- Employees must notify their employer within the timeframe specified in the company’s sick leave policy.
- If an employee fails to report their sickness within this period, they may lose their entitlement to SSP.
Typical Notification Requirements
- Employers set their own deadline for employees to report sickness (often within 7 days).
- Some companies require employees to provide a self-certification form for short-term sickness.
- For illnesses lasting more than 7 days, employees must provide a doctor’s fit note.
When Can Employers Deny SSP?
- If the employee fails to inform the employer on time.
- If the sickness report is not backed up with proper documentation (e.g., a medical certificate if required).
Employer Responsibility
- Employers must have a clear sick leave policy.
- If an employee is denied SSP due to late notification, they should be informed in writing.
Exhausted SSP Allowance
- SSP is only payable for a maximum of 28 weeks per period of sickness.
- If an employee has already received 28 weeks of SSP, they are no longer eligible for further payments.
What Happens After SSP Ends?
- Employers must issue an SSP1 form before the 23rd week of SSP payments so the employee can apply for ESA or other benefits.
- Employees with long-term illness or disability may need to transition to Employment and Support Allowance (ESA).
Example:
- A worker has been off sick for six months and has already received 28 weeks of SSP. They are no longer entitled to additional SSP payments.
- Their employer must provide them with an SSP1 form to apply for ESA.
Agency Workers and Zero-Hour Contract Employees
- While agency workers can qualify for SSP, those on zero-hour contracts or irregular work schedules may face complications.
Key Factors That Affect Their Eligibility
- They must earn at least £123 per week (average over the last 8 weeks).
- If they work irregular hours, their earnings might fluctuate below the threshold.
- If an agency worker has multiple employers, SSP eligibility may depend on each employer separately.
Employer Responsibility
- If an agency worker qualifies, the agency is responsible for paying SSP.
- Zero-hour contract workers should check their average earnings over the past 8 weeks to determine eligibility.
What Are the Alternatives If an Employee Does Not Qualify for SSP?
For employees who do not qualify for SSP, there are alternative sources of financial support:
Employment and Support Allowance (ESA)
- For those unable to work due to long-term illness or disability.
- Requires a medical assessment.
- Paid by the Department for Work and Pensions (DWP) rather than the employer.
Universal Credit
- Can provide financial assistance for those on low incomes or unable to work.
- Available to both employees and self-employed individuals.
Occupational Sick Pay (OSP)
- Some employers offer their own sick pay schemes that provide more than SSP.
- Employees should check their employment contract for details.
What Are an Employer’s Responsibilities Regarding SSP?
Informing Employees About SSP
- Employers should provide clear SSP eligibility guidelines in contracts and HR policies.
Issuing the SSP1 Form
- If an employee is not eligible for SSP, the employer must issue an SSP1 form within seven days.
- This allows the employee to apply for alternative benefits such as ESA.
Ensuring Legal Compliance
- Employers must accurately calculate SSP payments.
- Records of sick pay must be kept for at least three years.
- Failure to comply with SSP regulations can result in penalties.
Conclusion
While many employees qualify for SSP, some do not meet the criteria due to their earnings, employment status, or other benefit entitlements. Employers must ensure they follow the correct procedures when assessing SSP eligibility and issuing the appropriate paperwork.
For those who do not qualify, alternative financial support such as ESA, Universal Credit, or occupational sick pay may be available. Understanding these options is vital for both employers and employees to navigate sick pay entitlements effectively.
FAQs on SSP Qualification
What is the minimum earnings threshold for SSP?
To qualify for SSP, an employee must earn at least £123 per week before tax.
Can self-employed workers claim SSP?
No, self-employed individuals are not eligible for SSP. They may need to apply for Employment and Support Allowance (ESA) instead.
How long can an employee receive SSP?
Employees can receive SSP for up to 28 weeks per period of sickness.
What should an employer do if an employee is not eligible for SSP?
Employers must provide an SSP1 form to the employee so they can apply for alternative benefits such as ESA.
Do part-time or zero-hour contract workers qualify for SSP?
Yes, but they must meet the minimum earnings threshold of £123 per week.
Can an employee appeal if denied SSP?
Yes, employees can challenge an SSP decision by contacting HMRC’s Statutory Payment Disputes Team.
What alternative benefits are available if SSP is not granted?
Alternatives include Employment and Support Allowance (ESA), Universal Credit, and Personal Independence Payment (PIP).
