Source · Select Committees · Work and Pensions Committee
Recommendation 4
4
Rejected
Paragraph: 53
Maintain the three-day waiting period for Statutory Sick Pay, subject to periodic review.
Recommendation
Of all the reforms proposed to Statutory Sick Pay, removing the three-day waiting period would, we believe, have the most unpredictable consequences, since it could result in significant behavioural change by employees. It is uncertain whether removing the three-day waiting period would result in the increases in productivity across the economy that some predict, especially given the potential for levels of absenteeism to increase. The Government should maintain the three-day waiting period while keeping it under periodic review.
Government Response Summary
The government rejected the recommendation to maintain the three-day waiting period, stating they will remove it from the SSP system through the Employment Rights Bill to allow employees to access SSP from their first day of sickness absence.
Paragraph Reference:
53
Government Response
Rejected
HM Government
Rejected
The Government acknowledges that this recommendation was given under the previous administration. We are determined to strengthen SSP and ensure that no one should be forced to choose between their health and financial security. That is why, as set out in our Plan to Make Work Pay, we will remove the three-day waiting period from the SSP system through the Employment Rights Bill. The Government believes that it is important to enable millions of employees to access the safety net of SSP on their first day of sickness absence. This means that employees should feel better able to take the time they need to recover from short term illness, without struggling through work and often risking the spread of infectious diseases such as influenza. Similarly, employees with long-term or fluctuating conditions, should feel able to take a day of sickness absence to manage their condition to prevent it from worsening. Removing the waiting period will also better enable more flexibility in supporting phased returns to work after a period of sickness absence, which we set out in further detail in recommendation 5, as employees will be entitled to SSP for all days of work missed due to sickness. Taken together, these measures will help reduce presenteeism and help increase overall productivity and can also contribute to a positive work culture that better helps recruit and retain staff. We recognise, as set out in our Regulatory Impact Assessment, that these changes may result in increased absenteeism, however there are also likely to be positive presenteeism impacts as employees take shorter periods of sick leave overall therefore, we do not expect a substantial change in total sickness absence. Additionally, if employers have the right policies and practices in place, risks of inappropriate absenteeism can be mitigated.