When your employee is off sick for longer than three days you have the responsibility as their employer to administer Statutory Sick Pay (SSP) on their behalf. The first three consecutive days (excluding days not normally worked) of illness are known as "waiting days" and any payment during this period is at your discretion. From the fourth consecutive day SSP can be paid instead of, or as a part of the normal rate of pay.
As a domestic employer you are entitled to Small Employer's Relief, which means you can claim back a proportion of the SSP paid. If you use Stafftax we will calculate and apply the current formula on your behalf. SSP is claimed back by a deduction from your National Insurance contribution liability for the quarter in which the absence through illness occurred. In effect this means that your payments to HMRC will be reduced for that quarter.
Introducing an incentive
View current rates and thresholds.
Although it's not a legal requirement many employers pay their employees' salary in full for a set number of sick days per year. However many domestic employers introduce an incentive to discourage excessive days off sick. An incentive can be a Friday afternoon off, a voucher or a meal at a local restaurant. If you decide to offer an incentive make sure you include the terms in the employment contract.