Latest news with #StatutorySickPay
Daily Record
14-05-2025
- Health
- Daily Record
New proposed changes to sick pay rules could provide help to over one million workers
The new Employment Rights Bill would see sick pay kick in from the first day of absence for all workers. Employers will struggle with growing staff absenteeism under proposed UK Government plans to introduce sick pay from the first day of illness, critics have warned in Parliament. Concerns were raised in the House of Lords on Tuesday over the impact of scrapping the current three-day waiting period and removing the lower earnings limit to qualify for the payment. The measures relating to Statutory Sick Pay (SSP) - worth £118.75 per week - form a key part of flagship workers' rights reforms. Labour argues the existing situation can force people to work when they are unwell, leading to the spread of infection and poorer productivity for businesses. Under the changes proposed in the Employment Rights Bill, sick pay will kick in from the first day of absence - while around 1.3 million on low wages would become eligible. However, Conservative shadow business minister Lord Hunt of Wirral argued the legislation brought with it 'a raft of unintended consequences'. He said: 'Absenteeism is a critical issue for many businesses especially those in hospitality, retail and other service-based industries, where staff shortages can lead to disruption, cancellations and even closures. 'With the removal of waiting days for SSP and the expansion of eligibility it is essential that all of us should understand fully how these changes are going to affect absenteeism patterns across various sectors. 'One of the sectors most concerned with the potential rise in absenteeism that these changes will cause is of course hospitality.' He added: 'The concern is that the reforms could result in workers taking sick leave when it may not be strictly necessary as the financial implications of their doing so would be mitigated by the statutory sick pay payment.' 'We believe it is essential that the Government thoroughly evaluates how these statutory sick pay provisions would affect absenteeism. 'When workers can call in sick and expect SSP from day one businesses will inevitably be forced to deal with more absences at short notice.' Fellow Conservative peer Baroness Noakes said: 'Extending the days for which payment is made is likely to increase the number of days lost to sickness, as the current incentive to work if the illness is mild will simply disappear. 'The Government say they have no idea what the behavioural impact of the changes will be – whether positive or negative – but I am prepared to bet that there will be far more short-duration absences, which will qualify for statutory sick pay, than there were before.' However, former general secretary of the Trades Union Congress (TUC) and Labour peer Baroness O'Grady of Upper Holloway said: 'The Covid pandemic exposed just how precarious life is for those in insecure, low-paid work, and we do not know how many preventable illnesses were caused by people struggling into work and spreading the virus because they could not afford to stay home. 'But we do know, as we have heard, that forcing people back to work when they are ill is bad for workers and bad for business, puts pressure on the NHS and is costly for the economy.' She argued SSP had failed to keep up with the cost of living or increases in the living wage. Business minister Baroness Jones of Whitchurch said the proposed changes to sick pay would cost businesses around an extra £15 per employee, which she described as 'a relatively modest amount'. She added: 'I assure the House that the Government remain committed to monitoring the impact of these SSP measures.' Lady Jones went on: 'Our proposals have to be seen in the wider context of the Bill. The Bill is intended to improve the experience of employees at work, so measures such as flexible working, guaranteed hours and protection from harassment could – we believe will – reduce stress at work, potentially leading to fewer incidents of burn-out and better employee mental health, and therefore fewer related absences. 'For us, that is an important challenge that we intend to monitor.'
Yahoo
20-02-2025
- Business
- Yahoo
Small firms to cut jobs amid cost woes and new worker rights, finds poll
A third of small businesses are planning to axe jobs amid worries over soaring staff costs, while new employment rights are also set to see firms rein in hiring and trim their workforces, according to new figures. A poll of nearly 1,400 firms by the Federation of Small Businesses (FSB) in the final quarter of last year revealed that 33% expect to reduce their workforces, up from 17% in the previous three months. A separate survey of 1,270 small companies also found that over two thirds – 67% – would curb hiring in the face of the incoming Employment Rights Bill, with nearly a third – 32% – planning to reduce the number of employees they have before the new measures come into effect. It found that three quarters – 75% – of small employers flagged worries over new laws relating to unfair dismissal changes, while 74% raised worries about changes to sick pay. Tina McKenzie, FSB's policy chair, said: 'The figures speak for themselves – plans to allow employees to sue their employers on their first day on the job will wreak havoc on our already fragile economy, while changes to Statutory Sick Pay will make employers think twice about their hiring plans.' She added: 'If taking on staff becomes a legal minefield, businesses will simply stop. 'That means more people on benefits, a ballooning welfare bill, and a devastating hit to living standards.' The Employment Rights Bill also comes as firms face pressures from soaring labour costs, with the Government increasing national insurance contributions for employers from April, alongside another minimum wage hike. The FSB found that more than half – 51% – of small firms surveyed at the end of last year believe that labour costs are one of the biggest barriers to growing their business. A spokesman for the Government said: 'This Government has delivered the biggest upgrade to people's rights at work in a generation and our measures already have strong support from business, as well as overwhelming public support. 'As we deliver our Plan to Make Work Pay, we will ensure all businesses have their say and are given the time to prepare for any changes as we deliver our pro-business, pro-worker agenda.'
Yahoo
10-10-2024
- Business
- Yahoo
How will the changes to workers' rights affect you?
A major shake-up of workers' rights is on its way, but the reforms proposed are still being worked out and it is still unclear how some will work in practice. Changes could still be made before most of them take effect in two years' time, but here is what is being proposed and how it could affect you. Unfair dismissal From day one in their job, workers will have the right to claim unfair dismissal against their employer. That is a big change from the existing two-year qualifying period. However, it has been proposed staff will be subject to a nine-month probation period, during which employers can dismiss someone more easily and without the full process required once the probationary period ends. But the proposals could yet change with the government planning a series of consultations. The new rights are not due come into force until autumn 2026. Zero-hours contracts and flexible working Zero-hours contracts are also known as casual contracts. Workers are not guaranteed hours from employers, but they also do not have to work when asked. Under the new legislation, company bosses will be required to offer a zero-hours worker a guaranteed-hours contract based on the hours they clock up during a 12-week period. Employees who prefer having a zero-hours contract will be able to remain on those terms if they want to - the change is that they will have the right for guaranteed working hours if they want them. Workers on zero-hours contracts will also be entitled to "reasonable" notice ahead of any changes being made to their shifts, as well as compensation if a shift is cancelled or ended early. Some business groups would prefer employees to have a "right to request" a change from zero hours to guaranteed work, rather than the onus being on employers to offer it. Some sectors, such as hospitality, argue younger staff prefer zero-hours contracts to give them flexibility. Flexible working Flexible working is to become the "default" for all workers, with employers required to say yes to requests from staff from their first day starting in a job unless they can prove it is "unreasonable". The government defines flexible working as a way of working "that suits an employee's needs", for example, having flexible start and finish times, or working from home. It is currently unclear what will be deemed as "unreasonable" or whether the current process will change dramatically. As things stand, employees can request flexible working from their first day in a job, but an employer can refuse an application if they have a good business reason for doing so. Sick pay The waiting period and lower earnings limit to be entitled for Statutory Sick Pay will be removed. Currently, to qualify for sick pay, you must have been ill for more than three days in a row and earn an average of at least £123 per week. Under the government's plans, employees will be entitled to Statutory Sick Pay from the first day they are ill and those earning under £123 per week will also be eligible for it. You can get £116.75 per week Statutory Sick Pay if you're too ill to work and it is paid by your employer for up to 28 weeks. Some can get more if their company has a sick pay scheme. Unpaid parental and bereavement leave Parents are currently only allowed to take unpaid parental leave if they have been with a company for more than a year. The government plans to change this to become a right from "day one" in employment. The same will apply for bereavement leave. Anyone legally classed as an employee has the right to time off if a dependant dies. A dependant could be their: Husband Wife Civil partner or partner Child Parent A person who lives in their household (not tenants, lodgers or employees) A person who relies on them, such as an elderly neighbour What isn't in the Employment Rights Bill? Certain measures included in Labour's plan to "Make Work Pay", issued in the run-up to the general election, have not featured in the Employments Rights Bill, prompting criticism from unions. For example, the "right to switch off" - stopping employers contacting staff out of hours on phones, emails and texts - has been kicked down the road. The commitment to create a "single status of worker" is also not in the bill. This aimed to increase protection for people who are classed as self-employed, but largely work for one employer, and yet currently have fewer entitlements than other employees. However, it is understood legal complexities mean this will have to be revisited at a later date.
BBC News
10-10-2024
- Business
- BBC News
How will the employment rights bill affect you?
A major shake-up of workers' rights is on its way, but the reforms proposed are still being worked out and it is still unclear how some will work in could still be made before most of them take effect in two years' time, but here is what is being proposed and how it could affect you. Unfair dismissal From day one in their job, workers will have the right to claim unfair dismissal against their is a big change from the existing two-year qualifying period. However, it has been proposed staff will be subject to a nine-month probation period, during which employers can dismiss someone more easily and without the full process required once the probationary period the proposals could yet change with the government planning a series of consultations. The new rights are not due come into force until autumn 2026. Zero-hours contracts and flexible working Zero-hours contracts are also known as casual contracts. Workers are not guaranteed hours from employers, but they also do not have to work when the new legislation, company bosses will be required to offer a zero-hours worker a guaranteed-hours contract based on the hours they clock up during a 12-week who prefer having a zero-hours contract will be able to remain on those terms if they want to - the change is that they will have the right for guaranteed working hours if they want them. Workers on zero-hours contracts will also be entitled to "reasonable" notice ahead of any changes being made to their shifts, as well as compensation if a shift is cancelled or ended early. Flexible working Flexible working is to become the "default" for all workers, with employers required to say yes to requests from staff from their first day starting in a job unless they can prove it is "unreasonable".The government defines flexible working as a way of working "that suits an employee's needs", for example, having flexible start and finish times, or working from is currently unclear what will be deemed as "unreasonable" or whether the current process will change things stand, employees can request flexible working from their first day in a job, but an employer can refuse an application if they have a good business reason for doing so. Sick pay The waiting period and lower earnings limit to be entitled for Statutory Sick Pay will be to qualify for sick pay, you must have been ill for more than three days in a row and earn an average of at least £123 per the government's plans, employees will be entitled to Statutory Sick Pay from the first day they are ill and those earning under £123 per week will also be eligible for can get £116.75 per week Statutory Sick Pay if you're too ill to work and it is paid by your employer for up to 28 weeks. Some can get more if their company has a sick pay scheme. Unpaid parental and bereavement leave Parents are currently only allowed to take unpaid parental leave if they have been with a company for more than a year. The government plans to change this to become a right from "day one" in same will apply for bereavement legally classed as an employee has the right to time off if a dependant dies. A dependant could be their: HusbandWifeCivil partner or partnerChildParentA person who lives in their household (not tenants, lodgers or employees)A person who relies on them, such as an elderly neighbour What isn't in the Employment Rights Bill? Certain measures included in Labour's plan to "Make Work Pay", issued in the run-up to the general election, have not featured in the Employments Rights Bill, prompting criticism from example, the "right to switch off" - stopping employers contacting staff out of hours on phones, emails and texts - has been kicked down the commitment to create a "single status of worker" is also not in the bill. This aimed to increase protection for people who are classed as self-employed, but largely work for one employer, and yet currently have fewer entitlements than other it is understood legal complexities mean this will have to be revisited at a later date.
