The Employment Rights Bill is set to introduce the most significant changes to workplace rights in a generation, including a major shift to Statutory Sick Pay (SSP).
Under the proposals, SSP will become payable from day one of sickness absence, removing the current three-day waiting period. The Bill also extends eligibility to all workers, regardless of their earnings, by scrapping the £123 lower earnings limit.
While some elements of the Bill, such as day one unfair dismissal rights, have now been delayed until 2027, the government’s latest update confirms that the SSP changes are still likely to take effect from April 2026. That makes it important for employers to start preparing now.
What’s changing under the Bill?
- SSP payable from day one: the three ‘waiting days’ will be removed.
- Expanded eligibility: SSP will extend to all workers, including those earning below £123 per week, who will be entitled to 80% of their wages during sickness absence.
- Standard SSP is set to increase slightly, from £116.75 to £118.75 per week (up to 28 weeks).
What does this mean for employers?
The aim is to improve financial protection for lower-paid and atypical workers, but the impact on employers is clear. These changes mean higher SSP costs and a likely increase in short-term absences, particularly among workers who are newly eligible.
To stay ahead, employers should:
- Review and update sickness absence policies and contracts.
- Strengthen absence management processes.
- Equip managers with the skills and confidence to manage short-term absence effectively.
The business case for improving sickness absence
With absence costing the UK £103 billion annually (People Management), it’s essential to take all necessary steps to reduce the cost burden. Our own clients achieve an average of £1 million a year by proactively managing sickness absences.
April 2026 is fast approaching, so taking steps now will help ensure your organisation remains compliant and prepared for the operational and financial impact.
Update HR policies and contracts to reflect legislation updates
The first step is to review and update your organisation’s sickness and absence policies and employment contracts to reflect the upcoming changes.
In particular, contracts for zero-hours workers and others previously excluded due to the lower earnings limit will need to be updated, as these workers will now be entitled to SSP under the new rules.
Proactive HR policy and contract support
If your contracts, policies or handbooks haven’t been reviewed recently, now’s the time. Our expert contract and policy services are designed to help you navigate legislative change with confidence.
Whether you need legally robust documents, policies that reflect your culture, or a full refresh of your company handbook, we’ll help you balance compliance, business goals, and a people-first approach.
Our outsourced HR advisory services can also provide on-demand expertise to support your in-house team, especially if capacity is a challenge. With over 200 ER experts, we help organisations manage employee relations at scale to reduce HR costs, improve manager capability, and transform processes when it matters most.
Taking these steps now will help ensure your organisation is ready for the SSP changes.
Train managers on sickness absence management
Once your policies and contracts are updated, the next vital step is making sure your managers are prepared as they’ll be on the frontline of managing the impact of the SSP changes.
Their capability to handle absence confidently and consistently will be key to maintaining productivity and employee engagement.
Our high-performing team workshops equip managers with the practical skills to lead with confidence. They learn how to handle people challenges proactively, spot early signs of absence issues, hold supportive conversations and manage absence fairly, all while driving engagement and team performance. These interactive workshops are designed to build capability and confidence while helping managers contribute positively to the culture of the organisation.
Scalable learning for confident, consistent absence management
For day-to-day learning, our digital learning for manager empowerment provides accessible, engaging training on absence management, people leadership, wellbeing awareness and legal responsibilities.
The focus is on giving managers the knowledge to intervene early, hold meaningful conversations and resolve issues before they escalate into formal processes. Our eLearning solutions make it easy to embed this knowledge at scale, whether you’re supporting a handful of managers or thousands.
With the right support, your managers can turn the SSP changes from a challenge into an opportunity, driving consistency, supporting employee wellbeing and protecting productivity.
Taking a data-driven approach to managing absence
As part of your organisation’s longer-term response to the SSP changes introduced by the Employment Rights Bill, adopting a technology-led, data-driven approach can deliver real and lasting impact.
Organisations that manage sickness absence effectively report reduced costs, higher productivity, and better employee wellbeing. These benefits matter more than ever as absence-related costs rise and SSP eligibility expands.
With the right data and tools, HR teams and managers can spot patterns earlier, identify underlying issues, and take proactive action, before problems escalate. That’s exactly what empower® is built for.
Results driven by empowered managers
empower® simplifies absence case management through guided workflows and intelligent automation, giving managers the confidence to handle absence consistently while reducing admin and risk. At the same time, HR gains real-time visibility into absence trends, making it easier to refine policies, target interventions and support employee wellbeing.
The results speak for themselves. Organisations using empower® see absence rates drop by up to 10% within 12 months, while also reducing the burden on HR and enabling managers to resolve more cases independently.
When absence is managed well, everyone benefits. Employees feel supported, managers are more capable, and organisations stay productive, resilient and compliant.
Prepare now to stay ahead of the SSP changes
The SSP reforms under the Employment Rights Bill will bring wide-reaching changes, which will increase costs and place a renewed focus on proactive absence management. While the changes aren’t expected until April 2026, acting now gives organisations the time to prepare thoughtfully, protect productivity and stay compliant.
From updating contracts and policies to equipping managers and investing in smarter, data-driven solutions, the most resilient organisations will be those that take early, proactive steps.
Let’s get your organisation ready
Whether you need expert support to update your absence policies, train your managers, or take a more strategic, tech-led approach to managing absence, we can help.
Get in touch to speak to one of our experts about how we can support your organisation through the SSP changes and beyond.
