Statutory Sick Pay Changes: What Small Business Owners Need to Know (and Do)

Red sign with "Paid Sick Leave" (statutory sick pay) in white letters rests on a keyboard, accompanied by a stethoscope and a cup of coffee, symbolising workplace health policies.

The government is expected to make changes to Statutory Sick Pay (SSP) under the upcoming Employment Rights Bill. If you run a small business, it’s a good idea to get ahead of these changes so you're not caught off guard.

In this blog, I’ll break down what’s likely to change, how it could affect your day-to-day, and what practical steps you can take right now.

No fluff, no jargon, just the facts and what you need to do about them.

What’s Changing?

The government’s review of Statutory Sick Pay includes three big shifts:

• Scrapping the current 3-day waiting periodRight now, SSP kicks in from the fourth day of illness. This could change so that it starts from day one.

• Making more people eligibleCurrently, workers must earn a minimum weekly amount to qualify for SSP. The proposed change would include lower-paid workers too.

• Clearer employer responsibilitiesThe rules around what you, as an employer, need to do will become more detailed and easier to follow — but also stricter.

These changes are meant to support workers more fairly and make the process simpler and clearer for employers.

What Does This Mean for You?

If you employ people, even just one or two here’s how these changes to Statutory Sick Pay might affect you:

• You’ll need to pay SSP from the first sick day, not the fourth.

• More staff will be eligible for sick pay, including some part-timers or casual staff who previously didn’t qualify.

• Your sickness procedures and payroll processes may need updating.

Yes, it means a bit more admin. But with some early planning, it doesn’t need to be overwhelming.

"Desk scene with a laptop bearing a bright orange note indicating 'I'm on sick leave,' alongside a closed yellow notebook and matching highlighter."

What You Can Do Now: 5 Easy Steps:

Here’s how you can prepare your business in a way that’s simple, low-cost, and stress-free:

1. Review Your Sickness Policy

Dust off that document.Make sure it covers:

• How staff should report absences

• Who to contact and when

• What they can expect in terms of support and sick pay

If you don’t have a policy in writing yet, now’s the time.

2. Get a Simple System in Place for Tracking Absences

Even a basic spreadsheet is better than nothing.Keep a log of:

• When someone is off

• Why (if they’ve shared)

• When they returnedThis helps you spot patterns and keeps your records clean.

  
  

3. Start Having Return-to-Work Chats

When someone comes back from being off sick, have a quick check-in. It doesn’t need to be formal. Just:

• Ask how they’re feeling

• See if any support is needed

• Keep a short note of the conversation

  
  

It’s a simple way to show you care, and helps prevent longer-term issues.

4. Update Your Budget

If SSP will be paid from day one and more people are eligible, factor that into your cash flow planning now.Set a rough monthly figure aside to prepare for future costs.

5. Talk to Your Team

Let your team know changes are coming and that you’re working to keep things fair and clear for everyone.If you have line managers, make sure they know the basics too — consistency matters.

Balancing Support and Business Needs

Supporting sick staff doesn’t have to mean compromising your business.

The key is finding a balance where:

• Employees feel looked after

• You have clear processes to follow

• You can plan ahead with confidence

Making statutory sick pay processes a normal part of your business rather than a scramble when someone is off is the difference between stress and calm.

A woman reviews her budget on a tablet while using a calculator and smartphone, combining digital and traditional tools for financial planning.

Final Thoughts: Prepare Now, Avoid Stress Later

The changes to statutory sick pay are still being finalised, but they’re coming. By taking some simple steps now, you’ll save yourself headaches down the road.

This is a chance to:

• Get your sickness policy in shape

• Support your team better

• Stay compliant with changing rules

Need help putting this into practice in your business?

I work with small businesses to make sure your people processes are practical, simple and supportive no jargon, no overwhelm.

Get in touch if you’d like a quick chat about getting your business SSP-ready.

Rest is not a reward. It’s part of a healthy workplace. Let’s make sure your business is set up to reflect that.

Lets Chat

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