How will the new rules interact with company sick pay schemes?

The changes to Statutory Sick Pay (SSP) set a new statutory minimum standard, but they do not prevent employers from providing more generous sick pay arrangements.

Many employers already operate occupational or company sick pay schemes that provide higher levels of pay, longer periods of paid absence, or enhanced eligibility compared with SSP. These contractual arrangements will generally continue to apply unless they are amended through agreement or collective bargaining.

Where a company sick pay scheme is more generous than SSP, employees will normally continue to receive the contractual entitlement rather than relying solely on statutory sick pay. Employers cannot use the introduction of the new SSP rules to reduce contractual sick pay benefits unless they have a lawful basis for changing the relevant terms and conditions.

The new SSP rights therefore act as a minimum entitlement, while contractual and collectively agreed sick pay arrangements can continue to provide greater protection.

What this means for union reps

• The new SSP rules are a floor, not a ceiling — many members may continue to benefit from more generous contractual sick pay arrangements.
• Reps should check whether employers intend to review or amend existing sick pay policies in response to the reforms.
• Any proposal to reduce contractual sick pay entitlements should be carefully scrutinised and may require consultation, negotiation or collective bargaining.
• The reforms provide an opportunity for unions to continue campaigning for improved occupational sick pay schemes that go beyond the statutory minimum.