Last updated 2 December 2020

Eligibility for Statutory Sick Pay

Many businesses willl have had, and continue to have, employees absent from work either because they are suffering from COVID-19 or self-isolating/shielding in line with the Government’s recommendations.

Statutory Sick Pay, SSP is payable to qualifying employees who are off work for four or more days in a row at a rate of £95.85 per week, for up to 28 weeks. 

SSP can be paid if an employee is unable to work because they:

• have COVID-19 symptoms;
• are self-isolating on or after 13 March 2020 because someone they live with has symptoms;
• are self-isolating on or after 28 May 2020 because they’ve been notified by the NHS or public health bodies that they have come into contact with someone with COVID-19; 
• are self-isolating on or after 6 July 2020 because someone in their support bubble (extended household in Scotland or Wales) but not their own household has symptoms, or has tested positive for COVID-19;
• are self-isolating on or after 26 August 2020 because they've been advised to do so by a doctor or healthcare professional before going into hospital for surgery; or
• are shielding on or after 16 April 2020 and have a letter from the NHS or a GP telling them to stay home for at least 12 weeks.

Employees will not qualify for SSP if they are self-isolating after entering or returning to the UK, and do not need to self-isolate for any other reason.

Normally, SSP is not payable for the first three days an employee is off sick, which are referred to as ‘waiting days'. However, at Budget 2020, it was announced that, from 13 March 2020 SSP would be payable for the first 'qualifying day' the employee is off work, provided they are off for at least 4 days in a row (including non-working days).

Following this announcement, guidance on GOV.UK was updated to provide more information as to exactly how this will operate in practice for each of the circumstances set out above.

In order to claim SSP for COVID-19 related reasons, employees must inform their employer within any normal sickness notification time limit which their employer has set (or within seven days if they have not set a time limit). They also need to provide evidence such as a copy of any NHS shielding notice or an isolation note (available online from NHS 111) if they cannot work for seven or more days because of COVID-19 self-isolation. There is no need for an employee to visit a GP or hospital to get a fit note as they would for other forms of sickness absence.

Claiming back Statutory Sick Pay paid to employees

Alongside the above changes, the Government have launched a new Coronavirus Statutory Sick Pay Rebate Scheme which will repay employers up to two weeks of the standard rate of SSP paid to current or former employees.

The scheme can be used by employers who:

• have already paid the employee's SSP;
• are claiming for an employee who is eligible for sick pay due to COVID-19;
• have a PAYE payroll scheme that was created and started on or before 28 February 2020; and
• had fewer than 250 employees (taking into account any connected companies or charities) on 28 February 2020.

The scheme covers all types of employees, including full-time, part-time, agency workers and those on flexible / zero hours contracts.

Employees do not need to provide a fit note, but can be asked to provide either an isolation note (available online from NHS 111) if they are self-isolating, or the NHS / GP letter telling them they are high risk and should therefore shield.

Applications to reclaim SSP can be made using an online service which launched on 26 May 2020. Claims made using the service will be checked, and if valid paid directly into the nominated bank account within six working days.

Agents who are authorised for PAYE online can claim on behalf of their clients.  If a business would like to use an agent, but do not have one authorised to do PAYE online for them, they can authorise them by accessing their HMRC online services and selecting ‘Manage Account’.  The business must be enrolled in PAYE online for employers to do this and will need to ask their agent for their agent ID. The agent can get this from the HMRC online service for agents by selecting ‘authorise client.’

Employers must keep the following records for at least three years in respect of all SSP payments they wish to claim for:

• the reason why the employee could not work;
• details of each period when the employee could not work, including start and end dates;
• details of the SSP qualifying days when the employee could not work; and
• National Insurance numbers of all employees they have paid SSP to.