Sick pay: Low paid employees to get 80% of wage when sick

A couple of million low-paid employees within the UK are to be entitled to 80% of their weekly wage as sick pay from the primary day of sickness, beneath authorities plans.

At present, to qualify for statutory sick pay, you should have been sick for greater than three days in a row and earn a mean of no less than £123 every week.

“Nobody ought to ever have to decide on between their well being and incomes a dwelling, which is why we’re making this landmark change,” mentioned Work and Pensions Secretary Liz Kendall.

The British Chambers of Commerce referred to as the 80% fee a “truthful compromise”, however warned permitting sick pay from day one might result in increased employees absenteeism that smaller corporations might battle to deal with.

“Employers usually battle to search out shift cowl at brief discover, resulting in disruption for patrons,” mentioned Jane Gratton, deputy director of public coverage on the BCC.

“The federal government’s affect evaluation didn’t produce compelling proof on the day-one rights concern, so there might but be unexpected penalties.”

The federal government says the modifications will imply about 1.3 million individuals on low wages who fall sick will obtain both 80% of their common weekly earnings or statutory sick pay – which is presently £116.75 per week – whichever is lowest.

“The brand new fee is nice for employees and truthful on companies as half our plan to spice up rights and make work pay, whereas delivering our plan for change,” Kendall mentioned.

Nevertheless, some teams are asking the federal government to set sick pay for the bottom paid employees at at least 95% of their weekly pay.

TUC basic secretary Paul Nowak mentioned: “This should not be the top of the story.

“We urge ministers in future to boost the alternative fee for the bottom earners past 80% and undertake a wider evaluate of the statutory sick pay fee.”

The change to sick pay is a part of a variety of updates to the Employment Rights Invoice anticipated to be introduced on Tuesday, and goals to maintain extra individuals off advantages and increase dwelling requirements.

The invoice, which was revealed final 12 months, set out plans to enhance sick pay and permit employees larger rights to ask for versatile working and unpaid parental depart.

Nevertheless, the deliberate enhance in employees’ rights, along with the rising minimal wage and hike in employers’ Nationwide Insurance coverage, has led to criticism from many companies, who say the mixed affect will hit progress and employment.

On the weekend it emerged that the federal government wouldn’t be together with the “proper to change off” for employees within the invoice.

This measure had been proposed to cease employers contacting employees out-of-hours on telephones, emails and texts.

A authorities supply informed the Sunday Occasions that: “The fitting to change off is lifeless. We now have to decrease enterprise compliance prices as a lot as attainable.”