SSP Entitlement Guide for Employers

This article explains how statutory sick pay (SSP) entitlement works in practice for UK employers. It focuses on what HR and business owners need to understand about who qualifies for SSP, how entitlement is triggered and maintained, and where the main compliance risks sit when handling sickness absence and pay. The primary focus is on employees and other “employed earners” such as some agency workers who fall within SSP rules, rather than fully self-employed contractors or gig-economy workers who will usually sit outside SSP. The aim is to give you a working framework you can apply to day-to-day absence cases, regardless of sector or workforce size.

What this article is about: this guide sets out the legal rules on SSP entitlement for employees and other employed earners, including qualifying conditions, exclusions and how entitlement interacts with contractual sick pay schemes. It then looks at how employers should check evidence of sickness, calculate SSP, manage ongoing absence and deal with situations where SSP cannot be paid, including when and how to issue an SSP1 form. Where SSP is not payable or has ended, the guide explains how the SSP1 form supports claims for other benefits such as new-style employment and support allowance. The article is written for HR professionals, owner-managers and payroll leads who need a clear, reliable reference point for SSP decisions.

Statutory sick pay sits at the intersection of employment law, social security rules and payroll practice. While the statutory framework is relatively prescriptive, most disputes arise because the employer has not correctly identified whether the employee meets the qualifying conditions or whether the absence counts as a period of incapacity for work. A solid understanding of the entitlement rules helps reduce the risk of underpayments, grievances and alleged unfair treatment.

For employers, SSP also has implications beyond simple wage replacement. Decisions about entitlement can engage discrimination law, for example where the underlying health condition may amount to a disability, or where pregnancy-related sickness is involved. Poor handling of SSP cases can feed into wider claims of unfair dismissal or detriment for asserting statutory rights. Clear policies, consistent processes and accurate record keeping are therefore as important as understanding the headline rules.

At the same time, many employees’ expectations around sick pay are informed by contractual schemes or collective agreements that provide more generous cover than the statutory minimum. Where employers operate enhanced sick pay, they still have to apply the SSP rules correctly in the background, because SSP entitlement often underpins payroll calculations, reporting and entitlement to other benefits once SSP ends or is not payable. Misunderstanding SSP can lead to errors even where the employee is receiving full pay under a company scheme.

Throughout this article we assume the employer is operating in the UK and that the individual in question is an employee or worker who may be within scope of SSP as an employed earner, rather than a self-employed contractor. We focus on SSP entitlement under current UK rules, not on wider benefits such as Universal Credit or contributory employment and support allowance, although we touch briefly on signposting where SSP ends or is not payable and an SSP1 form is needed. We also focus on practical steps HR and employers can take to manage entitlement consistently across different absence scenarios.

If you adopt the approaches set out in this guide, you should be able to make faster, more confident decisions about SSP entitlement, understand when you must pay and when you can legitimately refuse, and put in place documentation and communication that stand up to scrutiny if challenged.

Section A: SSP entitlement rules

This section explains the statutory rules that determine when an employee becomes entitled to SSP. Employers need to understand how entitlement is triggered, which conditions must be met, and how exclusions apply in practice. A clear grasp of these rules helps prevent overpayments, underpayments and avoidable disputes, particularly where working patterns are irregular or absence episodes are short.

1. Legal definition of SSP entitlement

SSP entitlement arises when an employee is absent from work due to incapacity and meets the statutory qualifying conditions. The entitlement is created by the Social Security Contributions and Benefits Act 1992 and implemented through the Statutory Sick Pay (General) Regulations 1982. SSP provides a minimum level of payment for eligible employees who are unable to work because of sickness or incapacity, including illness, injury and mental health conditions. It is payable only for qualifying days, and only once the relevant waiting period has been satisfied.

The statutory framework defines a “period of incapacity for work” (PIW) as a period of four or more consecutive days during which the employee is incapable of work. These four days can include non-working days. Once a PIW exists, the employer must determine whether the employee meets the other conditions before SSP becomes payable.

2. Eligibility requirements

To qualify for SSP an employee must meet all statutory conditions. These include:

• Employment status: The individual must be an employee for SSP purposes. Workers and certain agency workers may also qualify depending on the contractual arrangements and whether they are treated as employed earners.
• Work under the contract: The employee must have actually performed some work under their contract. Having a contract in place is not enough on its own if no work has yet been done.
• Average Weekly Earnings (AWE): The employee must earn at least the lower earnings limit (LEL) for National Insurance purposes in the relevant earnings period. AWE is calculated over the eight weeks prior to the sickness absence or, for newer employees, the period of earnings available.
• Periods of incapacity: A PIW must exist, meaning four or more consecutive days of incapacity. Only qualifying days are payable and only once a PIW is established.
• Waiting period: SSP is not paid for the first three qualifying days unless the absence links to a previous PIW where waiting days have already been served.
• Notice requirements: The employee must notify the employer of their sickness within the employer’s reasonable notification rules, unless they have a good reason for being unable to do so.

If any of these conditions are not met, SSP will not be payable even if the employee is otherwise incapacitated for work.

3. Excluded categories

Certain circumstances prevent SSP from being paid even where illness or incapacity is present. These include:

• Employees whose earnings fall below the LEL based on the AWE calculation.
• Individuals who have not yet started work under their contract, even if a start date has been agreed.
• Those already receiving certain state benefits such as Employment and Support Allowance, where SSP no longer applies.
• Employees in custody or on strike for the duration of the absence.
• Employees who have already exhausted their maximum 28-week SSP entitlement in the same PIW or series of linked PIWs.

Pregnancy-related illness does not itself remove entitlement to SSP, but employers must take care not to confuse SSP rules with maternity rights. Where sickness occurs in the four weeks before the expected week of childbirth, statutory maternity leave and pay provisions may be triggered, and statutory maternity pay or maternity allowance can then take precedence over SSP. Employers must assess carefully whether the employee has moved onto maternity rights rather than continuing SSP.

4. Interaction with company sick pay

Contractual sick pay schemes sit on top of SSP rather than replace it. Even where the employer pays enhanced sick pay, they must still operate SSP in the background and deduct the amount of SSP from the contractual payment. Where the scheme pays full pay, the employee will usually not notice the SSP component, but the employer must still account for it for payroll, HMRC compliance and record-keeping purposes.

Where a scheme requires stricter evidence or reporting than statutory SSP rules, the employer must take care not to unlawfully deny SSP. Company policy cannot remove or reduce the employee’s statutory entitlement, although it can withhold enhanced sick pay if the policy conditions are not met. Any contractual term that conflicts with statutory SSP rights is unenforceable.

Section A summary: SSP entitlement depends on meeting strict statutory tests concerning employment status, work under the contract, earnings, periods of incapacity, qualifying days and notice requirements. Employers must identify when a PIW exists, check AWE correctly and ensure that internal sick pay rules do not conflict with statutory entitlement. Understanding these fundamentals keeps absence decisions compliant and consistent across the workforce.

Section B: Evidence and certification

This section explains the evidence employers can require before paying SSP and how certification interacts with entitlement. Employers often face disputes where reporting rules, fit notes or self-certification are not handled consistently. Getting these steps right helps ensure entitlement is assessed lawfully and fairly.

1. Fit notes and self-certification

Employees can self-certify sickness for up to seven calendar days. During this period employers can require the employee to confirm their sickness in writing or through an internal reporting system. After seven days the employer can legitimately request a fit note from a GP or other authorised healthcare professional, including nurses, occupational therapists, pharmacists and physiotherapists, following the 2022 expansion of certifying professionals.

A fit note confirms that the employee is either unfit for work or may be fit for work with adjustments. The note does not need to specify a diagnosis. Where the fit note suggests adjustments, the employer should consider whether reasonable adjustments are required under the Equality Act 2010. The presence of a fit note does not guarantee SSP entitlement; statutory qualifying conditions must still be met.

2. Timing obligations

To protect their SSP entitlement, employees must notify their employer of their sickness within the employer’s reasonable reporting rules. Most employers specify a requirement to notify on the first day of sickness and provide details of the expected duration. If an employee does not comply with the employer’s notification procedure and has no good reason, SSP may be withheld until proper notification is given.

Employers should ensure that reporting rules are clear, accessible and consistently applied. Reporting requirements cannot be so strict or inflexible that they disproportionately restrict entitlement. Where late notification is due to a valid reason, such as an emergency medical situation, withholding SSP may not be lawful.

3. Disputing medical evidence

Employers occasionally have concerns about the validity of medical evidence. While employers can seek clarification from the issuing clinician, they cannot require the employee to pay for private medical evidence. Employers should avoid challenging a fit note without a credible basis, as tribunals give significant weight to medical certification issued by authorised professionals.

Where evidence appears inconsistent, employers should raise the issue with the employee in a neutral manner and consider occupational health input if appropriate. Employers may seek an occupational health referral, but they must not delay SSP while awaiting the outcome. The ultimate question remains whether the statutory incapacity tests are met and whether acceptable evidence has been provided.

Section B summary: Employers must balance the need for reliable evidence with fair treatment. Self-certification covers the first seven days, after which a fit note can be required. Clear reporting rules help maintain entitlement, but unreasonable or inconsistently applied rules create risk. Medical evidence should only be challenged where there is a credible basis, and SSP entitlement must always be determined under statutory rules rather than employer discretion.

Section C: Calculating and paying SSP

This section sets out how SSP should be calculated, administered and brought to an end. Payroll accuracy is central to SSP compliance because errors can lead to unlawful deductions, underpayments and disputes about qualifying days or linked absences. Employers must ensure that calculations are correct and supported by clear records.

1. SSP rate and accrual

SSP is paid at a statutory weekly rate set by the government. Employers cannot pay less than this rate, although they may pay more under a contractual scheme. SSP accrues only on qualifying days, which are the days the employee is normally required to work or those agreed as qualifying for SSP purposes. If no agreement exists, qualifying days default to the employee’s normal working days.

To calculate SSP for part-weeks, employers divide the weekly rate by the number of qualifying days in that week and pay only for the qualifying days that fall within the employee’s entitlement. SSP is not payable for the first three qualifying days of a period of incapacity unless the absence links to a previous PIW where waiting days have already been served.

2. Linking periods of sickness

Certain periods of sickness link together if they form separate periods of incapacity for work that are eight weeks or less apart. Only periods that reach the four-day threshold for a PIW can form a link. Where periods link, the waiting days do not start again unless they were not fully served in the previous period. This can directly affect the employee’s entitlement in subsequent absences, including whether SSP becomes payable from the first qualifying day.

Linking rules also affect the assessment of Average Weekly Earnings (AWE). If the employee has not been paid for at least eight weeks before the linked absence, employers must use the earlier period’s earnings to assess whether the lower earnings limit is met. Errors in applying linking rules are a common cause of SSP miscalculations.

3. Payroll administration

Employers are responsible for paying SSP through payroll in the same way as normal wages. SSP is subject to tax and National Insurance. Employers must maintain detailed records of:

• dates of sickness
• payments made
• evidence received
• AWE calculations

These records must be retained for at least three years after the end of the tax year to which they relate. Employers cannot recover SSP from the government except in limited, historic circumstances, so accurate budgeting is essential.

Where an employer incorrectly withholds SSP, HMRC may intervene, require arrears to be paid and provide the employee with recourse through its Statutory Payments Dispute process. Repeated failures to comply can attract enforcement action and damage employee relations.

4. Ending entitlement

SSP entitlement ends when the employee has received the maximum 28 weeks of SSP in a single PIW or linked PIWs. It also ends if the employee returns to work, no longer meets statutory conditions or leaves employment during the period of sickness.

When entitlement ends or cannot be paid, employers must issue an SSP1 form. The SSP1 must be issued within statutory deadlines: within 7 days of deciding SSP cannot be paid, or in the 23rd week of SSP if entitlement is due to end. The form must set out the precise statutory reason for non-payment so the employee can pursue alternative benefits such as employment and support allowance.

Section C summary: SSP must be calculated strictly under statutory rules. Employers need reliable systems for identifying qualifying days, applying waiting days, assessing linked periods and recording evidence. Payroll accuracy and timely issue of SSP1 forms are essential to statutory compliance and to supporting employees who may need to transition to other benefits once SSP ends.

Frequently Asked Questions

1. Can an employee with multiple jobs receive SSP from each employer?
Yes. An employee can receive SSP from each employer separately as long as they meet the qualifying conditions in each job. SSP entitlement is assessed per employment, so earnings and qualifying days are considered independently.

2. What happens when an employee becomes sick during annual leave?
If an employee becomes sick during pre-booked annual leave, they may request to convert the period of sickness to sick leave if they meet SSP eligibility requirements. Employers should request appropriate evidence, particularly for longer absences. Any reallocation of annual leave must align with statutory holiday rules.

3. Can SSP be withheld if an employee fails to follow the sickness reporting procedure?
Employers can delay SSP if the employee fails to comply with reasonable notification rules and has no good excuse. However, the withholding must cease once proper notice is given. Procedures must be reasonable and consistently applied to avoid risk.

4. Are zero-hours workers entitled to SSP?
Zero-hours workers may qualify for SSP if they are treated as employees or employed earners for SSP purposes and earn at least the LEL based on their average weekly earnings. Their regular earnings patterns will usually determine qualifying days for SSP.

5. Do fit notes have to specify the exact diagnosis?
No. Fit notes do not need to specify a diagnosis. They must confirm whether the employee is not fit for work or may be fit with adjustments. A lack of diagnosis does not affect SSP entitlement.

6. What should employers do if SSP runs out?
Once the 28-week entitlement limit is reached or entitlement otherwise ends, employers must issue an SSP1 form without delay. The employee can then apply for other benefits. Employers must communicate clearly and provide any necessary payroll information.

Conclusion

SSP entitlement is governed by statutory rules that require employers to apply consistent processes when determining whether an employee qualifies for payment. Understanding how a period of incapacity is established, how earnings must be assessed and how waiting days and linked periods operate provides the foundation for lawful SSP decisions. Employers must also ensure that evidence requirements are applied fairly and that reporting procedures do not undermine entitlement through unreasonable demands or inconsistent enforcement.

Where entitlement is confirmed, employers must calculate SSP correctly, using qualifying days, accurate AWE assessments and reliable payroll systems. Timely communication and proper record keeping help prevent misunderstandings and reduce the risk of disputes. When SSP ends or cannot be paid, issuing the SSP1 form promptly is crucial to ensure the employee can access alternative benefits such as employment and support allowance.

Employers who integrate these rules into their sickness absence management processes are better positioned to make compliant decisions, avoid errors and maintain trust with their workforce. SSP compliance is a strict statutory duty, and clear policies and trained managers remain key to handling entitlement lawfully and consistently.

Glossary

Useful Links