On 6th April 2026, changes came into effect concerning Statutory Sick Pay (SSP). These will have a significant effect on how employers manage absence, particularly where zero-hours and casual workers are involved.
From this date, SSP becomes payable from the first day of sickness, removing the previous three-day waiting period. This means that even short absences can now give rise to an SSP liability from day one, increasing both eligibility and potential cost exposure for employers.
Another important change is the removal of the Lower Earnings Limit (LEL). This expands eligibility to a much wider group of workers, including those with low or irregular earnings, who would previously have fallen outside the SSP regime. However, this does not mean SSP becomes universal or fixed in all cases. Instead, entitlement continues to depend on average weekly earnings (AWE), with SSP payable at the standard rate or 80% of AWE, whichever is lower.
Zero-hours and casual workers
For zero-hours and casual workers, the practical effect is particularly important. SSP continues to depend on the concept of qualifying days, which are determined by the contractual or agreed working pattern rather than simply the number of shifts actually worked. This means entitlement is still linked to defined working arrangements rather than informal scheduling.
AWE is calculated over an eight-week reference period, using actual earnings where available. Where a worker has limited – or no – earnings history, fallback rules apply. In some cases, this can result in very low or even nil SSP entitlement in practice, where there is no meaningful earnings base from which to calculate average pay.
This creates a more complex position for employers managing irregular workforces. While more workers will fall within the scope of SSP, the amount payable will vary significantly depending on earnings history and contractual arrangements.
Employers may also need to think carefully about when a shift or assignment is treated as “agreed” for SSP purposes. In more flexible working arrangements, having a clear operational cut-off point for confirming shifts can help provide certainty and reduce disputes.
Overall, the reforms significantly widen access to SSP, but they do not remove the underlying earnings-based structure of the scheme. Careful planning around contracts, payroll processes and working arrangements will be essential to ensure compliance and manage cost exposure.
Next steps for employers
Employers should review their contracts and absence policies in light of the changes in force from 6th April 2026 to ensure they reflect the updated SSP framework.
Richard Beschizza, rradar solicitor says:
“Overall, the practical implications for employers with large zero hours populations are significant. They will see a broader category of workers falling within SSP eligibility because the earnings threshold is going, and they will face increased cost exposure for short term absence because SSP will be payable from day one.
At the same time, some workers may have very low or nil SSP entitlement because of the way AWE interacts with irregular or non-existent earnings in the relevant period. Payroll teams will need to be alert to the Regulation 19 fallback rules when workers do not have a full eight week history.
Managers will need to understand that SSP is not linked to hours or shift length, that a one day absence can trigger a full week’s SSP payment, and that accurate roster locking mechanisms will be increasingly important in a zero hours context.”
FAQs on Statutory Sick Pay
When do the Statutory Sick Pay changes come into force?
From 6th April 2026. From this date, SSP is payable from day one of sickness, rather than from the fourth day.
What has changed about eligibility for Statutory Sick Pay?
The lower earnings limit has been removed, meaning more workers will be eligible for SSP, including those on low or irregular pay. However, entitlement still depends on average weekly earnings.
How is SSP calculated under the new rules?
SSP is calculated as the lower of the statutory flat rate or 80% of the worker’s Average Weekly Earnings (AWE).
How is Average Weekly Earnings worked out?
AWE is calculated over an eight-week reference period based on actual earnings. Where there is insufficient pay history, fallback rules apply using available earnings or contractual remuneration.
How does SSP work for zero-hours workers?
Zero-hours workers can qualify for SSP if they have agreed work and meet the earnings-based test. However, entitlement and payment will depend heavily on their earnings history and how qualifying days are defined.
What are qualifying days for SSP?
Qualifying days are the days on which a worker is contractually or operationally expected to work. SSP is calculated by reference to these days, not simply the number of shifts worked.
Can a zero-hours worker receive no SSP at all?
Yes, in some cases where there is no meaningful earnings history, SSP may be nil because there is no average weekly earnings on which to base the calculation.
What is the practical effect for employers?
More workers will fall within the SSP system, but entitlement will vary significantly. Employers may also see increased short-term absence costs and will need to manage payroll and rostering more carefully.
What should employers do now?
Employers should review contracts, policies and payroll processes to ensure they are aligned with the new rules now in force from April 2026.
