Managing Sickness Absence – Your HR Top 10 Tips

SSP - What is changing?

From 6 April 2026 the Lower Earnings Limit (or LEL) is being removed, making SSP available to more of the workforce. Moreover, SSP will be payable from the first day of sickness absence, removing the current “waiting day” system. Lastly, SSP will be calculated as 80% of average weekly earnings or the flat rate (£123.25) — whichever is lower. According to government estimates, these changes will mean that 1.3 million additional workers may now qualify for SSP. Employees who are already receiving SSP from 6 April 2026 will continue to receive it until they either return to work, exhaust their entitlement or their contract ends.

As SSP is a business cost and not recoverable, these changes will bring an additional financial burden. Management of sickness absence is therefore key.

Your Top 10

1. Update contracts of employment and sickness absence policies

Make sure that any references to SSP in both contracts of employment and policies are amended to reflect the new SSP regime. Top tip – as the rate of SSP changes annually, I would avoid stating the actual rate but instead refer to the statutory rate set each year. Include the Qualifying Days for SSP and reference the need to certify absence (see below). With regards to Qualifying Days, the reforms mean that any day an employee is expected to work can now be a Qualifying Day.

2. Update managers and HR teams

Put simply when the changes occur, anyone having one day of sickness absence will be entitled to receive SSP as per the new SSP regime. It is important, therefore, that managers (and HR teams) understand the changes and what it means for the business in terms of additional cost.

3. Keep accurate and updated records

If you are not recording absences accurately, how can the business manage absence effectively? However you do it – online, a software tool, spreadsheets – records need to be up to date and also reviewed regularly with information being passed to the HR team so that support plans are put in place. Tracking absences will also help with calculations regarding average weekly earnings as well as linked periods of sickness absence.

4. Use return-to-work (RTW) meetings

Return‑to‑work meetings will become even more important but are your managers having them? Such meetings are really useful to understand what issues there might be, what support the employee may need and also whether there are any patterns or “triggers” which need to be considered, or referred to HR.

5. Update payroll systems

Remember employees – which can also include casual workers – are entitled to either the statutory SSP rate (which will increase to £123.25 per week from 6 April 2026) or 80% of their average weekly earnings (calculated over an 8-week reference period) whichever is the lower amount. It is important that payroll information is accurate and up to date.

6. Review company or occupational sick pay schemes

Is this a time to think about the business’s overall costs when it comes to sickness absence? Are sick pay schemes being applied consistently by managers (particularly if they are termed as “discretionary)? Please be aware that amending contractual or other schemes may require consultation with staff before making changes, so do take advice. Also bear in mind that changing employment terms will become much more difficult from January 2027 when changes to the law on fire and rehire come into effect.

7. Train your managers

When it comes to managing sickness absence, early intervention is key. Encouraging managers through training to spot any issues, have regular check-ins with their teams and understand the risks associated with failures in making reasonable adjustments will help the business manage absences proactively, consistently and fairly. Also, making sure managers apply any absence triggers fairly and consistently is also key. Achieve this through specific management training with case studies, questions and discussion around policies, processes and how to spot absence issues. Speak to us about training options.

8. Medical or occupational health referrals

Are you making referrals early to Occupational Health or seeking medical advice? Early advice around reasonable adjustments, return to work planning and helping understand the employee’s likely prognosis can really help businesses (and individuals) think and plan return to work strategies. Remember to make the right referral to the right expert and always be clear as to the questions you want answered.

9. Communicate attendance and absence expectations

It is vital that employees understand their sickness notification and certification requirements, when to provide a fit note, when the employer can refer to a medical expert and what pay they might be eligible for. Dust off your policies, communicate them and train to them!

10. Plan for increased sickness absence costs

Review and audit your sickness costs to ascertain how much the changes to SSP will impact your business – and your bottom line.

Summary

The government says that its SSP reforms will give greater protection for workers and also put less financial pressure on them to return to work when they are unwell. However, these changes will increase the burden on employers. Now is the time to refocus attention on managing sickness absence, using the tools in your “HR toolboxes” when it comes to sickness absence and ensure that managers and HR teams are trained on managing sickness absence proactively and consistently.