Best practice tips: What happens when Statutory Sick Pay runs out?

Statutory Sick Pay (SSP) is a fixed government payment made by employers to eligible employees who are unable to work due to injury or illness and have earnings over the prescribed threshold. It provides a basic income during periods of sickness absence. However, the requirement to pay SSP is not indefinite and there are specific rules on when it ceases, which employers need to be aware of. 

So when does SSP end?

SSP stops when an employee either returns to work or no longer qualifies for SSP. Typically:

• SSP ends after 28 weeks for the current period of incapacity for work or if the employee has a continuous series of linked periods (absences lasting more than 3 days each which are 8 weeks or less apart) that lasts more than 3 years.
• SSP ceases when an employee starts receiving statutory maternity or adoption pay.
• SSP ends if the employee resigns or is dismissed, unless termination occurs to avoid SSP liability.
• SSP eligibility ends if the employee is arrested, imprisoned or taken into legal custody.

What records are required?

While there is no specific legal requirement to maintain full SSP records, keeping accurate documentation is always recommended, particularly as employers may need to provide evidence to HMRC in the event of any dispute. 

We therefore recommend:

• Completing an SSP2 form, available online. Statutory Sick Pay: record sheet (SSP2) - GOV.UK 
• Maintaining form P11 or equivalent payroll records. 

What other related obligations are there? 

If an employee is not eligible for SSP or their entitlement ends, employers must notify them using an SSP1 form: Employer form SSP1: Statutory Sick Pay and an employee's claim for benefit - GOV.UK 

This form enables employees to apply for Universal Credit or Employment and Support Allowance (ESA).

Employers must issue the SSP1 form:

• Within 7 days of the employee’s first sick day (if they are ineligible from the outset).
• By week 23 of SSP (if it will end before their return to work).
• Within 7 days of SSP ending unexpectedly while they are still off sick.

By understanding these rules, maintaining clear records, and issuing the necessary forms, employers can ensure compliance with SSP regulations while supporting their employees effectively. We recommend seeking advice when dealing with employees absent as a result of illness and we would be pleased to assist with any questions contact us here: hello@fentonelliott.co.uk or 01635 896336.

This article is a summary of issues and we recommend taking legal advice before taking any formal action.