SSP Eligibility Guide for Employers

Statutory Sick Pay (SSP) is a core entitlement within the UK’s employment law framework, yet the rules governing eligibility remain a frequent source of uncertainty for employers. SSP is a statutory payment funded by employers for up to 28 weeks, but only in respect of qualifying days when the employee meets the statutory conditions. HR teams are often required to decide quickly whether an employee qualifies and to communicate that decision clearly, supported by compliant record-keeping and consistent processes. Getting SSP eligibility wrong can trigger payroll errors, employee disputes and avoidable organisational risk.

What this article is about: This guide explains how SSP eligibility works under UK law and what employers must consider when assessing whether an employee qualifies. It sets out the statutory conditions for eligibility, the circumstances in which SSP cannot be paid, and the employer’s responsibilities when administering entitlement. It also examines how to manage borderline or complex situations, including where employees fall short of the earnings threshold or dispute a decision. The aim is to give HR professionals and managers a clear, legally accurate framework for handling SSP eligibility with confidence, including a better understanding of how qualifying days differ from calendar days when applying SSP rules.

Section A: SSP eligibility criteria

Determining whether an employee qualifies for Statutory Sick Pay requires a structured analysis of several statutory conditions. Employers must be able to apply these rules consistently across the workforce, using accurate payroll information and compliant absence procedures. This includes understanding the difference between an employee’s qualifying days and calendar days, as SSP is only ever paid for qualifying days. This section sets out the legal framework that governs SSP eligibility and explains how each condition should be assessed in practice.

1. Legal basis for SSP entitlement

SSP is governed primarily by the Social Security Contributions and Benefits Act 1992 and the Statutory Sick Pay (General) Regulations 1982. The legislation places the duty to pay SSP on employers when an employee meets the statutory criteria. SSP is normally payable for up to 28 weeks in a single period of sickness, or in linked periods of incapacity for work, subject to the statutory rules. Employers cannot contract out of SSP, reduce entitlement or apply alternative eligibility requirements. Any additional sick pay offered under a contractual scheme is separate and cannot override the statutory rules.

2. Employee status and continuous employment rules

To qualify, the individual must be an employee for tax and employment law purposes. Workers who are paid through PAYE typically fall within scope, including full-time, part-time, fixed-term and many agency employees supplied by an agency operating PAYE. Zero-hours and casual workers can also qualify where they are treated as employees and have a pattern of work giving rise to qualifying days. There is no minimum service requirement for SSP, but the employee must have commenced employment and performed work before the period of sickness begins. Employees who have not yet started work do not qualify. Where someone has moved onto a new contract but has not done any work under that contract, they will not usually qualify for SSP under the new arrangement until work has actually been performed.

3. The earnings threshold and how it is assessed

Employees must earn at least the Lower Earnings Limit on average, calculated over the relevant eight-week period prior to the sickness absence. The test is based on average weekly earnings (AWE), which includes wages, overtime, commission, bonuses and most statutory payments processed through payroll, such as statutory maternity, paternity, adoption and shared parental pay. For employees with irregular hours or fluctuating pay, including zero-hours staff, employers must still use the statutory eight-week reference period, taking all taxable earnings in that period and dividing by the number of weeks. If the reference period contains no earnings because the employee has not yet been paid, the employer should use the first normal payday after sickness begins. An employee who earns below the Lower Earnings Limit is not entitled to SSP and should be issued with form SSP1 so they can explore alternative support.

4. Periods of incapacity for work

For SSP purposes, the employee must have a period of incapacity for work (PIW), defined as four or more consecutive days of sickness, including non-working days. The incapacity must prevent the employee from performing their contractual duties. Short absences of fewer than four consecutive days do not create a PIW and therefore do not qualify for SSP, even if the employee provides medical evidence. While a PIW is measured in consecutive days, SSP is only ever paid in respect of qualifying days, which are normally the days the employee is required to work under their contract or work pattern.

5. Waiting days and linking periods

SSP is not payable for the first three qualifying days in a PIW, known as waiting days, unless the absence links to a previous PIW. Waiting days must be qualifying days, not just any calendar days. Linking applies where two PIWs occur within eight weeks of each other, enabling waiting days already served in an earlier PIW to count towards the later absence. In practice, this means that if an employee has already served three waiting days in a previous linked PIW, SSP in a subsequent linked PIW will be payable from the first qualifying day of that later absence. Employers must maintain accurate absence records and clearly identify qualifying days to ensure SSP is paid from the correct date.

6. Evidence and certification required

Employees can self-certify for the first seven days of sickness. Beyond this point, employers can normally require a fit note issued by a GP or other authorised healthcare professional. Employers should avoid imposing evidence requirements that exceed statutory expectations, such as insisting on a fit note before day seven of sickness without good reason, or demanding additional private medical reports without justification. Fit notes should confirm whether the employee is unfit for work or may be fit for work with adjustments. A recommendation that the employee may be fit for work with adjustments does not affect SSP entitlement; if the employer cannot reasonably accommodate the suggested adjustments, SSP must still be paid as long as the other qualifying conditions are met.

Section A Summary

An employee qualifies for SSP when they meet the statutory criteria relating to employee status, earnings, incapacity, qualifying days and evidence. Each condition must be considered carefully and supported by correct payroll and absence records, especially for employees with irregular hours or fluctuating pay. A consistent approach to defining qualifying days, calculating AWE, applying waiting days and recognising linked periods reduces the risk of error and strengthens compliance with the employer’s statutory obligations.

Section B: Non-eligibility scenarios

Employers frequently encounter cases where an employee does not meet the statutory requirements for SSP. These situations can create tensions if not handled transparently and with reference to the legislative framework. Identifying non-eligibility early allows HR teams to communicate clearly, manage expectations and signpost alternative support where appropriate. This section covers the main scenarios in which SSP cannot be paid and the issues employers should watch for.

1. Employees who do not meet the earnings threshold

Where an employee’s average weekly earnings fall below the Lower Earnings Limit, they are not entitled to SSP. This often arises with part-time staff working limited hours, employees on variable hours with irregular pay, and individuals who have recently joined the business. Employers must ensure AWE is calculated correctly using the prescribed eight-week reference period, taking account of all taxable earnings in that period. If the reference period contains no earnings because the employee has not yet been paid, the employer should use the first normal payday after sickness begins. Employees below the threshold should be issued with form SSP1 so they can claim other benefits. Form SSP1 should normally be provided within seven days of the decision not to pay SSP, or within seven days of SSP ending earlier than the maximum entitlement.

2. Employees with insufficient employment history

Although SSP does not require a minimum length of service, the employee must have commenced work. A new starter who has signed an employment contract but has not yet performed any work does not qualify. Similarly, someone who reports sick before their first working day cannot receive SSP. This rule prevents claims by individuals who have not yet established employee status through actual work performed. Where an employee has moved onto a new contract after a break in employment and has not yet done any work under that contract, they will not usually qualify for SSP in respect of that new arrangement until work has actually been carried out.

3. Situations where SSP is not payable (disqualifying events)

Certain statutory exclusions prevent SSP being paid even when other criteria are met. These include, for example:

• Employees already receiving Statutory Maternity Pay or Maternity Allowance in respect of the same period
• Employees who are in legal custody or detained by the authorities
• Employees who have exhausted the maximum 28 weeks of SSP in a single period of sickness or linked periods
• Employees who are outside the UK where the conditions for paying SSP for overseas sickness are not satisfied
• Employees with pregnancy-related sickness during the four-week period before the week the baby is due, where Statutory Maternity Pay is triggered instead

Employers must review these disqualifying events carefully, as overlooking them can lead to overpayments, payroll corrections and difficulties for employees who may need accurate information to support benefit claims.

4. Contractual sick pay interactions

Where an organisation offers contractual sick pay that is more generous than SSP, eligibility for the contractual scheme does not override statutory non-eligibility. Some employees assume contractual entitlement guarantees SSP, but the statutory requirements still apply, including the earnings threshold, the need for a period of incapacity for work and the relevant disqualifications. Employers must ensure HR staff understand the distinction and communicate it clearly to avoid disputes and to ensure that any contractual scheme is administered consistently with the statutory framework.

Section B Summary

Employees may fall outside SSP entitlement for several reasons, including earnings below the Lower Earnings Limit, sickness prior to starting work or specific statutory exclusions such as receipt of maternity pay or being in custody. Employers must document eligibility decisions meticulously and provide employees with appropriate information, including form SSP1 within the required timescales, when SSP cannot be paid. Clear, well-evidenced decision-making helps to prevent disputes and supports employees in accessing any alternative benefits to which they may be entitled.

Section C: Employer responsibilities

Administering SSP eligibility places significant responsibilities on employers. HR teams must apply statutory rules consistently, maintain accurate records and ensure decisions are transparent and defensible. Employers who overlook their obligations risk payroll errors, employee disputes and potential enforcement action from HMRC. This section explains the core responsibilities that organisations must follow when assessing whether SSP is payable, including duties relating to qualifying days, accurate AWE calculations and the handling of medical evidence.

1. Assessing eligibility consistently

Employers must ensure that decisions relating to SSP eligibility are made using the same criteria across all departments and employee groups. A consistent approach relies on accurate payroll data, clear absence reporting procedures and well-trained managers who understand when to escalate eligibility issues to HR. Consistency reduces the risk of discrimination claims and reinforces fairness across the organisation. It also ensures that qualifying days, waiting days and linked periods are applied uniformly.

2. Payroll duties and accurate record-keeping

Payroll teams must retain detailed records of sickness absence, SSP payments, PIW dates, linking periods, fit notes, qualifying days and AWE calculations. HMRC requires employers to keep SSP records for at least three years. Detailed records support compliance and protect against disputes or investigations. Employers must also ensure payroll systems are configured correctly to apply waiting days and linking rules automatically where possible. Payroll teams should remain alert to situations where SSP must continue during periods of statutory annual leave, provided the employee remains sick and continues to meet eligibility conditions.

3. Handling medical evidence and self-certification

Employers must accept self-certification for the first seven days of sickness. Beyond this point, a fit note can be requested, typically from a GP or another authorised healthcare professional. Employers should not insist on a fit note before day seven unless there is a clear contractual basis and a justifiable reason. Fit notes that indicate “may be fit for work” do not affect SSP entitlement. If the employer cannot accommodate the suggested adjustments, SSP must still be paid, provided the statutory criteria are otherwise met. Employers should avoid imposing unnecessary or intrusive evidence requirements that exceed statutory expectations.

4. Dealing with disputes and employee queries

If an employee challenges an SSP decision, employers must be able to explain the basis of their calculation or assessment. Clear documentation helps resolve disputes quickly. Where disagreement persists, employers should provide the employee with form SSP1 and direct them to the relevant government guidance or benefits advice channels. A transparent approach maintains trust and reduces the likelihood of escalated complaints. Clear communication is particularly important where an employee disputes the application of qualifying days, AWE calculations or the handling of medical evidence.

Section C Summary

Employers must administer SSP eligibility with accuracy, consistency and clear documentation. Proper record-keeping, fair application of evidence requirements, correct identification of qualifying days and effective dispute management all contribute to statutory compliance and minimise organisational risk. Maintaining structured processes ensures SSP decisions remain aligned with current legislation and HMRC guidance.

Section D: Managing SSP eligibility issues

Eligibility decisions can be straightforward where the statutory criteria are clearly met or clearly not met. Difficulties arise when employees fall close to the earnings threshold, have irregular work patterns, work variable qualifying days or dispute the employer’s assessment. HR teams must manage these situations with clarity, accuracy and a strong understanding of the statutory framework. This section outlines how employers should address complex or contentious SSP eligibility cases while maintaining compliance and trust.

1. Communicating eligibility decisions

Employees must be informed promptly whether they qualify for SSP. A clear explanation of the reasoning behind the decision helps prevent misunderstandings. When SSP is awarded, employers should confirm the payment rate, the qualifying days for which SSP will be paid, the start date and any waiting days applied. Where SSP is expected to run for a long period, employees should understand that payment is limited to a maximum of 28 weeks in a single period of sickness or linked periods. When SSP is refused, the communication should set out the statutory grounds for ineligibility, such as earnings below the Lower Earnings Limit or a failure to meet the PIW rules, and confirm the employee’s right to receive form SSP1. Transparent communication reduces the risk of conflict and reassures employees that decisions are based on objective rules rather than subjective judgement.

2. Advising employees who are not entitled

Where SSP cannot be paid, employers should provide form SSP1 without delay so the employee can consider claiming other financial support, such as Universal Credit or new style Employment and Support Allowance, if they meet the relevant criteria. Form SSP1 should normally be provided within seven days of the decision not to pay SSP, or within seven days of SSP ending earlier than the maximum 28-week entitlement. HR teams should avoid offering speculative advice about benefit entitlement but can and should signpost employees to official government resources and independent advice agencies. Employers should also ensure that managers understand not to give misleading verbal assurances about sick pay, for example suggesting that SSP will be paid where statutory entitlement is absent or has been exhausted.

3. Interaction with other benefits and support

Some employees who do not qualify for SSP may still be eligible for other financial support through the benefits system, depending on their circumstances. Others may be moving between different statutory payments, such as SSP and statutory maternity, paternity, adoption or shared parental pay. Employers must understand that SSP cannot normally be paid in respect of the same period for which certain other statutory payments are made, and that in some cases (for example pregnancy-related sickness in the four weeks before the expected week of childbirth) Statutory Maternity Pay will take precedence. Although employers are not responsible for advising on the broader benefits regime, they must ensure their internal processes do not create obstacles for employees. Accurate and timely completion of form SSP1, clear payroll records and precise start and end dates for statutory payments are particularly important where the employee requires evidence for a benefits claim.

4. Mitigating legal risk for employers

Incorrect SSP assessments expose employers to risk, including payroll breaches, HMRC scrutiny and employee grievances or claims. To mitigate these risks, organisations should maintain clear written policies on sickness absence and SSP, ensure managers understand their responsibilities and carry out regular reviews of payroll and record-keeping systems. Periodic training for HR and payroll teams helps to keep decisions aligned with current legislation and HMRC guidance, particularly where there are changes to the Lower Earnings Limit, fit note rules or interaction with other statutory payments. Employers should also monitor how qualifying days, waiting days and linked periods are applied in practice, checking that internal procedures produce consistent outcomes across the workforce.

Section D Summary

Managing SSP eligibility requires employers to communicate decisions clearly, support employees appropriately and apply the statutory framework with precision. Proactive management of borderline cases, careful handling of interactions with other statutory payments, proper use of form SSP1 and robust internal procedures all reduce legal risk and enhance organisational compliance. When HR and payroll teams work from accurate records and clear policies, SSP eligibility decisions are more consistent, defensible and easier to explain to employees.

FAQs

Who qualifies for SSP?

An employee qualifies for Statutory Sick Pay if they meet all statutory conditions: they must be an employee for PAYE purposes, earn at least the Lower Earnings Limit on average, have a period of incapacity for work lasting at least four consecutive days and provide appropriate evidence if the absence lasts longer than seven days. SSP is payable only for qualifying days, which are normally the days the employee is required to work. Employers must apply these criteria consistently across the workforce.

What if an employee earns below the threshold?

Employees whose average weekly earnings fall below the Lower Earnings Limit are not entitled to SSP. In these cases employers must issue form SSP1 promptly, normally within seven days of the decision not to pay SSP, so the employee can pursue other financial support through the benefits system. Employers should ensure that earnings are calculated correctly using the statutory reference period before confirming non-eligibility.

Can agency staff receive SSP?

Agency workers paid through PAYE are generally eligible for SSP if they meet the statutory conditions. Where an agency supplies staff to a host employer, the agency is usually responsible for administering SSP and maintaining the relevant records. HR teams should ensure that contractual arrangements with agencies clearly allocate responsibility for SSP payments, qualifying days and record-keeping.

What evidence can employers request?

Employees can self-certify for the first seven days of sickness. Beyond that period employers are entitled to request a fit note issued by a doctor or authorised healthcare professional. Employers should avoid imposing requirements that exceed statutory expectations, such as insisting on a fit note before day seven without a clear contractual and lawful basis. A fit note that suggests the employee may be fit for work with adjustments does not affect SSP entitlement. If the employer cannot make the adjustments, SSP must still be paid if the other conditions are met.

How should HR handle disputes over eligibility?

Where an employee disagrees with a decision, the employer should explain the basis of the assessment and provide supporting calculations or evidence. If disagreement continues, employers should issue form SSP1 and signpost the employee to relevant government guidance. Clear record-keeping, a transparent approach to qualifying days and well-documented AWE calculations help prevent disputes from escalating.

Does SSP continue during annual leave?

Yes. If an employee remains sick during a period of statutory annual leave and continues to meet the SSP eligibility conditions, SSP must continue. Annual leave cannot be used to interrupt sickness for SSP purposes.

Does SSP stop during unpaid leave or career breaks?

Yes. SSP cannot be paid during periods in which an employee is not expected to work, such as unpaid leave, career breaks or periods where there are no qualifying days. SSP only applies to periods where qualifying days exist and other statutory conditions are satisfied.

Can SSP be paid at the same time as other statutory payments?

SSP cannot normally be paid for the same period as certain other statutory payments, such as Statutory Maternity Pay or Maternity Allowance. Where an employee becomes sick during the four-week period before the expected week of childbirth due to a pregnancy-related illness, Statutory Maternity Pay will take precedence and SSP will not be payable.

Conclusion

SSP eligibility decisions require employers to apply statutory rules with precision, supported by accurate payroll information, clear absence procedures and an understanding of qualifying days, waiting days and linked periods. HR teams must understand how the eligibility criteria operate, when SSP is not payable and how to communicate decisions clearly to employees. By maintaining robust record-keeping, using compliant evidence requirements and issuing form SSP1 within the required timescales, employers reduce legal risk and ensure a fair and transparent approach to managing sickness absence across the organisation. Consistent, well-documented processes help ensure SSP decisions remain aligned with current legislation and HMRC guidance.

Glossary

Useful Links