For many employers, sickness absence is already a challenging area of workforce management. Balancing employee wellbeing, operational demands and legal compliance requires clear policies and consistent decision-making.
The Employment Rights Act 2025 introduces one of the most significant changes to Statutory Sick Pay (SSP) in recent years. From April 2026, eligible employees will be entitled to SSP from the first day of sickness absence, removing the current waiting period. For employers, this change will affect absence management, payroll processes and workforce planning. In this guide, we explain what is changing, why the Government is introducing the reform and what employers should do now to prepare.
Statutory Sick Pay (SSP) is the minimum amount employers must pay eligible employees who are unable to work due to illness. Under the current system, employees generally become eligible for SSP from the fourth qualifying day of sickness absence. The first three qualifying days are known as waiting days and are usually unpaid. The Employment Rights Act 2025 removes this waiting period, allowing eligible employees to receive SSP from the first qualifying day of sickness absence.
The Government has announced plans to make Statutory Sick Pay available from Day One of sickness absence. This means eligible employees who are off work due to illness will no longer have to wait for three unpaid qualifying days before receiving SSP. The reform forms part of the Government's wider commitment to strengthening employee protections and improving financial security for workers. According to Government factsheets, the changes are expected to take effect from April 2026, subject to final legislation and implementation arrangements.
The Government's position is that the current waiting period can create financial hardship for employees, particularly those on lower incomes or working in sectors where short-term sickness absence is common. By providing SSP from the first day of illness, policymakers aim to reduce financial pressure and encourage employees to recover properly rather than returning to work while unwell. The change may also help reduce workplace transmission of illnesses by removing financial incentives for employees to attend work when sick.
While the change may appear straightforward, it has several practical implications for employers. Businesses may experience an increase in SSP costs as employees become entitled to payment from the first day of absence rather than the fourth. Payroll systems and absence management procedures may need updating to reflect the new entitlement. Managers and supervisors will also need to understand the changes to ensure sickness absence is managed fairly and consistently. For organisations with high workforce numbers, seasonal workers or shift-based operations, the financial impact could be more noticeable.
The best approach is to begin reviewing policies and procedures before the changes come into force. Employers should assess their sickness absence policies, payroll systems and employee handbooks to ensure they accurately reflect future legal requirements. Managers should receive training on absence management, employee wellbeing and employment law compliance to ensure policies are applied consistently. Businesses may also wish to review workforce planning arrangements and consider how increased SSP costs could affect operational budgets.
This is a question many employers are asking. While some businesses are concerned that SSP from Day One could increase short-term absence levels, there is currently limited evidence to suggest this will happen. Many organisations already provide enhanced occupational sick pay schemes that exceed statutory requirements. The most effective way to manage absence remains clear communication, consistent policies, supportive management and proactive wellbeing initiatives.
Employment law changes often require more than policy updates. Managers and supervisors need practical knowledge to apply workplace rules fairly, consistently and confidently.
Circle Academy supports employers through:
Employment Law Fundamentals Training
Leadership and Management Courses
Workplace Compliance Training
Mental Health Awareness Training
Equality, Diversity and Inclusion Training
HR and Manager Development Programmes
With more than 180 accredited courses available online and in person, we help organisations build a compliant, competent and confident workforce.
This article is based on guidance and implementation plans published by the UK Government and ACAS. | UK Government – Employment Rights Act Implementation Timeline https://www.gov.uk/government/publications/implementing-the-plan-to-make-work-pay-and-employment-rights-act | UK Government – Employment Rights Act Factsheets | https://www.gov.uk/government/publications/employment-rights-bill-factsheets | ACAS – Statutory Sick Pay Guidance https://www.acas.org.uk/checking-sick-pay/statutory-sick-pay-ssp
The information in this article is intended as general guidance for employers and managers. It should not be relied upon as legal advice. Employment law is subject to change, and the application of legislation may vary depending on individual circumstances.
If you are unsure how the Employment Rights Act 2025 may affect your organisation, we recommend seeking appropriate legal or professional advice.