Statutory sick pay: employer rules and the fit note process

Statutory sick pay: employer rules and the fit note process


 

The basics every employer should know

When an employee is too ill to work, Statutory Sick Pay is the legal minimum most employers must pay. The rules are precise about who qualifies, when payment starts, how much is due and what evidence the employer can ask for. Getting any of these wrong leads to underpaid staff, grievances and HMRC trouble. This guide sets out the employer side of SSP and the fit note process that supports it.

Who qualifies for SSP

An employee qualifies if they meet all of these conditions:

  • They are classed as an employee and have done some work for the employer.
  • They earn at least the lower earnings limit, £125 a week for 2025/26, on average. Check the current figure each year, as it moves with the National Insurance thresholds.
  • They have been ill for at least four days in a row, including non-working days. This is the period of incapacity for work.
  • They have told the employer about the sickness within any deadline the employer sets, or within seven days if no deadline is set.

Agency, casual and part-time staff can all qualify; the test is earnings and employment status, not contract type. SSP is paid for up to 28 weeks per period of incapacity, at £118.75 a week for 2025/26. Employers should confirm the current weekly rate each tax year, since it is uprated annually.

When payment starts: waiting days and the pay pattern

SSP is not paid for the first three days of the period of incapacity. These are waiting days, and payment begins on the fourth day. The weekly rate is then applied according to the employee's normal working pattern: a full-time employee receives the full weekly rate, while someone working fewer days receives a proportionate daily rate. If periods of incapacity are linked, meaning separated by less than eight weeks, they can join into a single period, which matters for the 28-week limit and for whether waiting days apply again.

One point that surprises smaller employers: there is no recovery of SSP costs from the government since the old scheme ended in 2014, so SSP is a direct business cost and one more reason to manage absence well.

The fit note process

Employers cannot demand a doctor's note from day one. The evidence rules are:

  • For the first seven days of absence, the employee self-certifies. Most employers use a standard self-certification form recording the dates and the reason.
  • From the eighth day of absence, the employer can ask for a fit note, the statement of fitness for work issued by a GP, hospital doctor or other authorised healthcare professional.
  • A fit note says either that the employee is not fit for work, or that they may be fit for work subject to adjustments such as amended duties, altered hours or workplace adaptations. The "may be fit" option deserves a genuine conversation rather than an automatic rejection.

Fit notes can now be issued digitally, and employers should accept them in the form provided. Chasing a paper original when a valid digital note exists only creates friction.

What employers must do in practice

Beyond paying the right amount from the right day, the employer's duties include keeping proper records of absence dates, SSP payments made and fit notes received, for at least three years. If an employee does not qualify for SSP, the employer must give them form SSP1 within seven days of the decision, explaining why and telling them they may be able to claim Employment and Support Allowance instead. Failing to issue the SSP1 is a common breach that leaves employees without support and employers exposed.

Company sick pay schemes sit on top of SSP, not instead of it. If the contract offers full pay for a moment, the employer still needs to track the SSP position underneath, because the 28-week entitlement and the linking rules continue to run.

Managing absence fairly

The fit note process works best inside a sensible absence policy. Hold a return-to-work interview after every absence to welcome the employee back and spot patterns early. Use trigger points, such as three absences in six months, to prompt a supportive review rather than a disciplinary process. Where a fit note suggests adjustments, document what was considered and what was agreed; tribunals look kindly on employers who can show they engaged with the process. Keep medical information confidential and separate from general personnel files.

Long-term absence needs its own rhythm: regular welfare contact, occupational health referral where appropriate, and phased returns planned around fit note advice.

A record-keeping checklist

For each absence, the file should show the first and last day of incapacity, the self-certification or fit note covering it, the waiting days applied, the SSP daily rate used, each payment made, and a copy of any SSP1 issued. When those six items are in place for every case, the employer can answer any HMRC or tribunal question with confidence.

Sick pay administration is fiddly, deadline-driven work that lands on whoever is nearest, which is usually the wrong person. Finex Outsourcing is a Global Business Services provider supporting UK employers with payroll administration done properly, so SSP, fit notes and records are handled right first time. The official employer guidance is at gov.uk.


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