Statutory Sick Pay Is Changing: Are You Ready?

The Government has confirmed that Statutory Sick Pay (SSP) will be strengthened by removing the three-day waiting period. This means SSP will become payable from day one of sickness absence.

While this may appear to be a simple payroll adjustment, the operational and financial implications for employers are far broader.

For many organisations, this change could mean:

• Increased short-term absence costs
• Greater payroll and administrative workload
• Increased scrutiny of absence management processes
• Higher expectations for line managers
• Greater compliance and recordkeeping risk

If your business is not operationally prepared, the impact could escalate quickly, particularly for small and medium-sized employers.

These changes are expected to take effect in April 2026, which means preparation should begin now.

What’s Changing?

Currently, SSP is payable from the fourth qualifying day of sickness absence. The first three days are unpaid unless your organisation provides contractual sick pay.

Under the new legislation:

• The three waiting days will be removed
• SSP will be payable from day one
• Annual April rate increases will continue, increasing overall cost exposure

As statutory protections increase, so too will expectations that employers operate clear, fair, and well-documented systems.

This is not just about payroll settings. It is about process, policy, systems, and management capability.

What Day 1 SSP Means for Employers

When SSP becomes payable from day one, several practical implications arise:

• Every short-term absence carries an immediate cost
• Intermittent absence patterns become more financially significant
• Payroll must apply SSP correctly from day one
• Managers must understand entitlement rules clearly
• Absence triggers and monitoring processes must be robust

For SMEs in particular, even small increases in short-term absence can significantly affect margins.

Are Your Absence Policies Fit for Purpose?

Your sickness absence policy must now work harder than ever. It should:

• Reflect updated SSP entitlements
• Clearly outline the correct procedure for reporting sickness absence
• Outline self-certification and fit note requirements
• Explain how SSP interacts with contractual sick pay
• Set out absence triggers and monitoring processes
• Define return-to-work expectations

Outdated policies increase legal risk and undermine managers’ confidence.

How HR Software Can Help

Modern HR platforms, such as oneHR, allow you to:

• Store and version-control policies
• Distribute policy updates and request a signed acknowledgement for digital record-keeping.
• Centralise documentation for audit purposes

This creates both clarity and defensibility.

Rethinking Absence Triggers and Monitoring

With day-one SSP, short absences carry greater cost. That means your absence trigger thresholds and monitoring tools may need recalibration.

Ask yourself:

• Are current trigger points still appropriate?
• Are they applied consistently?
• Are managers confident using them?
• Are you monitoring frequency as well as duration?

Many organisations use the Bradford Factor to identify patterns of intermittent absence. However, the effectiveness of this depends entirely on consistent and accurate recording.

Supporting Tools

Absence management systems can:

• Automatically calculate Bradford scores
• Generate real-time trigger alerts
• Make it easier to flag repeat patterns
• Produce absence trend reports

oneHR provides automated absence-tracking dashboards, reducing reliance on spreadsheets and manual monitoring.

Without accurate data, absence management becomes reactive rather than strategic.

Accurate Recording Is Now Critical

Day-one SSP increases the need for meticulous recordkeeping.

Consider:

• How are absences currently reported?
• Who logs them?
• How quickly are they recorded?
• Can reports be generated instantly?
• Are fit notes and correspondence stored securely?

If your business relies on spreadsheets or informal email reporting, you may lack:

• Audit trails
• Data consistency
• Secure storage
• Real-time management visibility

A dedicated absence management module can:

• Log absence immediately via employee self-service
• Store fit notes securely
• Maintain correspondence history
• Provide automated alerts
• Generate compliance-ready reports

This not only improves compliance but can also help proactively reduce short-term absence.

Manager Capability: The Hidden Risk

Inconsistent manager capability is one of the biggest operational risks in sickness management. Therefore, policies alone do not manage absence.

With strengthened Statutory Sick Pay, managers must understand:

• The changes to SSP
• Day-one entitlement rules
• Notification and certification requirements
• When absence triggers are reached, and what action to take
• How to conduct structured return-to-work meetings
• The link between sickness, disability, and reasonable adjustments
• When to escalate to HR

Training is no longer optional. It is a risk mitigation tool.

Well-trained managers:

• Reduce absence costs
• Improve employee relations
• Ensure fair and consistent treatment
• Protect the business from employment tribunal claims

Reviewing Your Absence Process

Now is the time to step back and assess your full absence workflow:

1. How is sickness absence reported?
2. Who records it?
3. Where is it logged and how quickly?
4. How are trigger alerts generated?
5. When are return-to-work meetings scheduled?
6. How are outcomes documented?
7. How is SSP calculated and processed?

The strongest organisations align:

• HR systems
• Payroll systems
• Policy documentation
• Manager training
• Reporting capability

Integrated HR systems can ensure SSP is calculated correctly from day one and reduce the risk of underpayments or overpayments.

How to Prepare Now for Day 1 SSP

Rather than waiting for costs to rise in April 2026, businesses should act proactively.

Preparation should include:

• Updating sickness absence policies
• Reviewing and recalibrating absence triggers
• Implementing or upgrading absence management software, such as oneHR
• Training managers on day-one SSP and structured absence management
• Ensuring payroll systems are configured correctly

Investing in structured systems now is significantly less costly than reacting to rising absence costs later.

When Statutory Sick Pay becomes payable from day one, short-term absence will carry an immediate financial impact.

Organisations that rely on outdated policies, informal tracking, and improper processes may see absence costs escalate quickly.

Those who take action now, by strengthening policies, investing in HR systems, improving reporting accuracy, and developing manager capability, will be best placed to manage the transition confidently, compliantly, and cost-effectively.

The change is coming. The question is whether your organisation will be ready.

Book a demo to see how oneHR can support an effective absence management process.

Call: 0330 107 1037

Email: contact@onehrsoftware.com

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