Absence Management and the Upcoming Changes to Statutory Sick Pay (SSP)

Managing employee absence is something every employer has to deal with. While sickness absence is inevitable from time to time, it can quickly become challenging without clear processes in place.

At the same time, changes to Statutory Sick Pay (SSP) expected in April 2026 mean employers may soon see more employees qualifying for sick pay and payments starting earlier than they currently do.

For businesses, this is a good opportunity to review absence management policies and ensure they are prepared for upcoming changes.

In this blog, we look at what absence management involves, the upcoming SSP changes, and what employers should do now to prepare.

Why Absence Management Matters

Effective absence management is about more than simply recording when someone is off sick. It helps organisations:

• maintain productivity and service levels

• ensure fairness and consistency across teams

• Identify patterns of absence early

• support employee wellbeing

Without a clear absence management process, businesses can struggle to manage recurring short-term absence or support employees who may need additional help returning to work.

A well-structured approach typically includes:

• a clear sickness reporting procedure

• consistent absence recording and monitoring

• return-to-work meetings

• trigger points for reviewing absence levels

• support for employees experiencing long-term illness

Putting these measures in place helps create a fair system that supports employees while protecting the business's needs.

Current Statutory Sick Pay Rules

Statutory Sick Pay (SSP) provides a minimum level of income for employees who are unable to work due to illness.

Under the current system:

• SSP is usually paid from the fourth day of sickness (the first three days are known as “waiting days”).

• Employees must earn above the Lower Earnings Limit to qualify.

• The standard rate is £118.75 per week and can be paid for up to 28 weeks (UK Government guidance: gov.uk/statutory-sick-pay).

However, reforms planned under the Employment Rights legislation will change how SSP works from April 2026.

Key SSP Changes Expected in April 2026

Sick Pay from Day One

One of the most significant changes is the removal of the three waiting days.

From April 2026, eligible employees are expected to receive SSP from the first day they are off sick, meaning even short periods of absence may trigger sick pay.

For employers, this may increase the number of paid sickness days across the workforce.

More Employees Will Qualify for SSP

The government plans to remove the Lower Earnings Limit requirement for SSP eligibility.

This means workers who previously did not qualify – such as some part-time or lower-paid employees – could become eligible for sick pay.

As a result, more businesses may see an increase in SSP claims across their workforce.

New Calculation Method for Some Employees

Under the proposed changes, sick pay for lower earners may be calculated as 80% of their normal weekly earnings, where this is lower than the standard SSP rate.

The aim is to make sick pay more accessible without paying more than someone would normally earn.

What This Means for Employers

Although these changes are designed to provide greater financial security for employees when they are unwell, they may also create additional challenges for employers.

Businesses may see:

• More employees qualify for sick pay

• Higher short-term absence costs

• Greater administrative pressure to track absence accurately

This is why having a clear and well-managed absence process will become even more important.

How Employers Can Prepare

If you haven’t reviewed your absence management procedures recently, now is a good time to do so.

Some practical steps include:

Review your sickness absence policy

Ensure your policy reflects the upcoming SSP changes and clearly explains how employees should report sickness.

Train managers

Line managers play a key role in managing absence. Training helps ensure they handle sickness consistently and conduct effective return-to-work conversations.

Monitor absence trends

Tracking absence data can help identify patterns early and highlight where additional support may be needed.

Focus on employee wellbeing

Supporting employee wellbeing through flexible working, mental health support, and occupational health referrals can help reduce long-term absence.

Final Thoughts

The upcoming SSP reforms represent one of the biggest changes to sick pay in recent years. While the changes aim to provide better support for employees, they will also mean employers need to take a proactive approach to absence management.

Reviewing your policies now can help ensure your business remains compliant and prepared for the new rules when they take effect.

Need Support with Absence Management?

Managing absence and keeping up with employment law changes can be time-consuming for busy businesses.

If you would like support reviewing your absence management policies, preparing for SSP changes, or training your managers, our HR team is here to help.

Get in touch with us today to discuss how we can support your business.