Statutory Sick Pay reform unpacked: Top 10 questions from HR
With Statutory Sick Pay (SSP) reform fast approaching, many employers are facing rising costs, increased operational pressure and heightened legal risk at a time when HR teams and managers are already stretched.
These concerns are reflected in a recent HR News survey, which found that 75% of UK businesses are worried about the cost of day‑one SSP. Crucially, the impact of the reform goes beyond payroll and it has far‑reaching implications for absence management, employee relations capability and tribunal exposure.
While the full impact won’t be clear until the change is implemented, it is expected to increase short‑term absence levels. From clients I’ve been speaking to, this reform is widely seen as the most significant provision in the Employment Rights Act 2025, even outweighing the introduction of unfair dismissal rights at six months. This is because it affects every employer at a time when businesses are already under significant cost pressure. – Stefan Mars, Head of Legal at Halborns
Understanding how to prepare now is critical to staying compliant, managing risk and avoiding unintended consequences across the workforce. During our recent webinar, ‘Get ahead of SSP reform: A guide for UK employers’, senior HR leaders asked some interesting questions to our panel of experts.
Rena Christou, CEO of Empowering People Group, Stefan Mars, Head of Legal at our group legal division, Halborns, and expert guest speaker Marcus Uzubalis, Director at LACE Partners, share their perspectives below, responding to the questions raised.
1. What are the key data points we need to capture?
From an employee relations and risk‑prevention perspective, data plays a critical role in identifying issues early and preventing escalation into formal cases. HR should track both the types and frequency of issues, including informal concerns, as these can act as early warning signals for future absence or disputes.
It’s important to analyse where issues occur, who is involved, and how long cases take to resolve, as patterns often reveal recurring team, managerial, or capability challenges. This helps to address them proactively.
Monitoring themes such as behaviour, workload, and conflict is essential. Technology, including AI, can support deeper analysis by identifying trends and root causes. Together, these insights create a clear heat map of emerging hotspots, enabling earlier intervention and reduced organisational risk.
2. Can pay be withheld during a probationary period?
No. Statutory Sick Pay (SSP) entitlement applies from the first day of employment, including during probationary periods.
3. Do you recommend any integrated systems with real-time data and automated alerts?
A modern, data‑driven approach to employee relations can significantly improve outcomes for both HR and managers. Integrated models that provide real‑time insights, automated alerts and actionable data-driven insights help organisations move from reactive absence management to a proactive and risk averse approach.
We’ve coined the term Employee Relations as a Service (ERaaS) as this modern operating model that gives HR actionable insights, empowers managers to be better leaders, and enables proactive absence and risk management. This fit-for-the-future model reduces burnout, improves productivity and the employee experience, whilst reducing costs and freeing up HR to focus on strategic priorities.
Speak to an expert to find out more.
4. Are part‑time employees entitled to SSP if they are sick for part of the week?
Yes. If an employee works five days a week but for shorter hours each day, is off sick for two days, and works the remaining three days earning above the Lower Earnings Limit, they will be entitled to SSP for the two days of sickness from 6 April 2026.
5. Does the employee need to provide fit to work if they return early?
An employee who is covered by a fit note can return to work before the expiry of that note, provided the employer is satisfied that they are fit and well enough to do so. Employers should also check with their employers’ liability insurer to ensure there are no objections to an early return.
6. Do you expect SSP reform to impact grievance levels and how can organisations manage that risk?
Statutory Sick Pay reform could impact grievance levels in some scenarios, for example if there is a spike in sickness absence that leads other employees to feel overworked, or if absence management becomes more proactive than before.
To manage this risk, organisations should focus on clear, consistent communication. Being transparent about how sickness absence is managed, and applying processes fairly and consistently across the organisation, is key to reducing conflict.
7. Why is sickness absence higher in the UK than in the USA?
Higher sickness absence levels in the UK compared to the US are likely a result of there being no federal law in the US requiring paid sick leave, alongside alongside there being significantly looser employment rights and protections in the US.
8. Do we have to tell all staff about this change?
Yes. If employment contracts currently state that Statutory Sick Pay is paid from day four onwards, those contracts will need to be updated to reflect the change. This can be done either by reissuing contracts or by issuing side letters that clearly set out the updated position.
9. How do we reduce the risk of tribunals?
Tribunal risk can be reduced by managing absence confidently, fairly and consistently. While managers may feel cautious where disability, neurodiversity, or mental health conditions are involved, these factors do not prevent appropriate absence management.
The key is being able to demonstrate that reasonable adjustments have been made, such as applying more lenient triggers for disability‑related absence. This significantly strengthens an employer’s position in defending discrimination claims.
Where disability is not a factor, organisations should rely on clear absence triggers, employee awareness, appropriate warnings and consistent treatment across comparable cases.
10. We have little bandwidth in the team. How do we deal with an increase in sickness absence?
With managers and HR teams already stretched, organisations need the right tools and support to reduce reliance on internal HR capacity. This includes providing managers with clear, accessible policies, targeted training on what is changing, and practical guidance so they can handle absence cases confidently and sensitively.
Technology, like our empower® platform, can help streamline ER case management processes and support proactive absence management, while external employee relations support helps to absorb increased caseloads, fill capacity gaps and reduce the risk of burnout within internal HR teams – this is vital considering HR teams are being hit hardest by absence in the UK.
Get ahead of SSP reform: On-demand webinar
Missed the session or want to revisit the discussion? Watch the webinar on‑demand here to hear the full expert conversation and practical guidance for employers. Explore the resources shared in the session below: