Statutory Sick Pay Updates: How to Manage Absence in 2026

By alisonbarlow|Mar 3, 2026|1:28 pm GMT

Managing absence is about to get a little more complicated, thanks to incoming changes to Statutory Sick Pay (SSP). Due to take effect from April 2026, the expansion of some statutory leave rights and updates to SSP entitlements will require operators to update policies and payroll systems, and train staff so they’re well versed in the changes.

Understanding the new rules is only one piece of the puzzle. Working out how to apply them consistently across a workforce with varying hours, fluctuating earnings, and a high turnover is the other.

Statutory Leave and Pay Changes

From April 2026, there will be no three-day waiting period for staff absent due to sickness. They’ll be able to claim Statutory Sick Pay from the first day of sickness absence.

At the same time, eligibility will change. The lower earnings limit will be removed, extending SSP entitlement to lower-paid and casual workers for the first time. Anyone who earns less than the lower earnings limit, will instead be entitled to 80% of their average weekly earnings rather than the flat statutory rate.

The other headline change is a day-one entitlement for paternity leave and unpaid parental leave. Eligibility for statutory pay for parental leave doesn’t change, and is still dependent on the lower earnings threshold and a minimum employment term of 26 weeks.

The Impact on Hospitality

Hospitality workforces are particularly exposed to these changes. Variable hours, short shifts, and fluctuating weekly earnings mean employees may move in and out of eligibility thresholds from one pay period to the next.

With SSP payable from day one, even brief absences now carry a direct cost. Over time, this can materially affect labour budgets, especially where absence is not recorded accurately or managed consistently.

Operations Considerations

The most immediate impact of the 2026 changes is administrative. Payroll systems must be able to calculate SSP correctly from day one, apply the correct earnings-based calculation where required, and be ready to handle a higher volume of SSP payments overall. Absence reporting processes also need to be robust enough to capture sickness accurately and promptly from day one.

Managers will need to be aware of the changes and internal policies for managing absence. With SSP due from day one, informal processes that rely on manager discretion can leave operators exposed.

Compliance vs. Control

SSP is a direct cost to the employer, and expanded SSP entitlement will increase the costs associated with even short illnesses. Certification rules are largely unchanged, meaning employees can self-certify for short periods of sickness. Operators will need established policies and procedures in place to address repeated or unexplained absences by individuals.

Documentation is key. Employees must understand how sickness is reported, how SSP is calculated, and any evidence employers require. Managers also need to be aware of the policies and confident in applying them, particularly in situations where absence becomes frequent or disruptive.

Operator Considerations

These updates will inevitably affect day-to-day operations, HR, and payroll processes. However, there are steps operators can take to mitigate that impact and ensure the changes are adopted as smoothly as possible:

• Review sickness absence policies to ensure they reflect day-one SSP entitlement and expanded eligibility rules.
• Test payroll systems to confirm SSP is calculated correctly from day one, including the 80% earnings-based calculation for lower-paid employees.
• Ensure absence reporting processes capture sickness accurately and promptly, particularly for short-term absences.
• Train managers on the updated rules and internal policies, reducing reliance on informal or discretionary approaches.
• Review certification and return-to-work processes to ensure patterns of repeated or unexplained absence can be addressed consistently.
• Communicate clearly with employees about how sickness absence is reported, how SSP is calculated, and what evidence may be required.

Getting the basics right will make it easier to stay compliant without losing control of absence, or letting costs and admin creep up unnecessarily.