As of the 6th April 2014, employers are no longer able to reclaim Statutory Sick Pay (SSP) from the government.
Employers have previously been able to reclaim any SSP that exceeded 13% of their monthly national insurance contributions.
The government passed this Order in an attempt to avoid incentivising employers with high absence rates. The estimated saving of £50 million will be used to fund a new initiative entitled the ‘Health and Work Service’. This will be brought into effect in 2015 and is intended to reduce days lost to sickness absence.
In practice, employers will in the immediate future be faced with managing the return of employees on long term sick leave effectively and carefully, and balancing their aim of curtailing the duration of the absence with breaching the rights of employees.
To discuss how this will affect your business, please contact Parveen Bunglawala on 01925 230000