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United Kingdom: Government launches consultation on strengthening statutory sick pay

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In brief

Further to the Employment Rights Bill that was published on 10 October 2024, the government has launched a consultation on strengthening statutory sick pay. The consultation seeks views on the amount of statutory sick pay that employees earning less than the current eligibility threshold should receive as part of the amendments to the Employment Rights Bill. 

Key takeaways

  • The Employment Rights Bill provides for a new universal entitlement to statutory sick pay from an employee’s first day of illness. Currently, eligible employees are entitled to statutory sick pay (SSP) of GBP 116.75 a week for up to 28 weeks, but SSP usually only begins on the fourth consecutive day of illness. The changes remove this four day “waiting period”, meaning that SSP entitlement will begin from day one. 
  • More employees will also become eligible for SSP as the Bill removes the current eligibility threshold (i.e., that an employee must earn at least the lower earnings limit of GBP 123 per week), although the Bill provides that those paid below the present threshold may receive a lower rate of SSP at “the prescribed percentage of the employee’s normal weekly earnings”.
  • The current consultation seeks views on what that prescribed percentage should be.
  • The consultation will close on 4 December 2024 and the government plans to make the change through government amendment to the Employment Rights Bill.
  • For more information on the key provisions of the Employment Rights Bill, please click here.

For advice or to discuss what this means for you and your business, please contact your usual Baker McKenzie contact.

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Monica Kurnatowksa is a partner in the Firm’s London office. She is recognised by The Legal 500 and Chambers UK as a leading individual. Chambers say she has “impressive experience of handling complex employment disputes and advisory matters for major clients. She is known for her expertise in trade union matters.” "The breadth of her experience is phenomenal." "She is an outstanding lawyer who provides a first-class service while juggling the intense demands of running high-profile matters on behalf of her clients. She is unflappable, courteous and extremely knowledgeable”. Monica is a member of the Consultation Board of PLC Employment On-line and is a regular speaker at internal and external seminars and workshops.

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Stephen Ratcliffe is a partner in Baker McKenzie's Employment and Compensation practice in London in which he has worked for over 20 years. He advises on the full range of contentious and non-contentious employment law matters for which he has been ranked for multiple years in Chambers & Partners. He is also a member of the Legislative & Policy Committee of the Employment Lawyers Association, and a member of the Employment Consulting Editorial Board of Lexis+. In addition to his day to day practice, Stephen is the London Office's Training Principal and co-Chairs the London BakerWomen group.

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Carl is a partner in the Employment Group at Baker McKenzie. He focuses on advising organisations on the employment aspects of financial transactions together with more general employment and litigation advice. Carl has been recommended in the Chambers legal directory as being “hailed for his rigour and interpersonal approach to assignments”, an ability to “build a rapport very quickly with clients." Carl is also recommended by Legal 500 and has been quoted as being “excellent across the board” “very thorough,” “strong on transactional matters," “staying on top of the issues” and is further quoted as being “thorough, patient and goes the extra mile.”

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Kim Sartin is a partner in Baker McKenzie's Employment and Compensation team in London and a Member of the Firm’s Global TMT Group SteerCo. She is ranked as a leading individual in Chambers, as Up and Coming for Industrial Relations and recognised for her experience in the TMT sector (Chambers Global, UK). She is described as “a true global partner” who “stands apart with her business acumen”.

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Jonathan Tuck is a partner in the Baker McKenzie employment department. Jonathan joined the Firm in June 2012 and completed secondments at Google between March and July 2015 and British Airways between July 2015 and January 2016.

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Julia Wilson is a partner in Baker McKenzie's Employment & Compensation team in London and co-chair of the Firm's Workforce Redesign client solution. Julia also leads the employment data privacy practice in London. Julia advises multinational organisations on a wide range of employment and data protection matters. She is highly regarded by clients, who describe her as a “standout” performer who "knows how we think." A member of the Firm's Pro Bono Committee, she plays a lead role in the Firm's pro bono relationship with Save the Children International. She also collaborates with Law Works to deliver employment law training to solicitors who provide pro bono advice to individuals. Julia regularly presents and moderates panels on podcasts, webinars and in-person events, is often quoted in mainstream media, and authors articles and precedents for a range of industry and other publications.

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Mandy Li is a Knowledge Lawyer in Baker McKenzie London office.

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