Don't have to pay sick pay?

[BenJacobs]

Happy new year, all.

A friend of mine has just got their payslip, they had 2 days off sick in December, and have had the money taken off for those 2 days.

I'd always assumed statutory sick pay was paid by the employer - is this no longer the case?

Is it discretionary, or just not something that needs to be paid any more?

They've also noticed that the amount that's been deducted from their net pay is the gross amount of what they'd otherwise have earned - which seems bizarre.

For example - let's say they earn £100 per day gross, their take-home is somewhere around the £82 - but they've had £200 taken off their net pay.

I might be being dense here - but:

(1) if it's supposed to have been taken off in the first place(?),

(2) surely it shouldn't be 2 days of gross pay that's deducted? It'd be the equivalent of net, right?

Thanks for your help.

 

[fisicx]

What does it say in the employees handbook?

 

[Ziggy2024]

Statutory sick pay has a waiting period of 3 days so it is correct to have no pay for this period.

The gross should be amended not the net - are you sure the deduction is after tax? That bit isn't correct.

 

[WaveJumper]

It's all here:

https://www.acas.org.uk/checking-si...t=It can be paid for,are called 'waiting days'.

 

[BenJacobs]

What does it say in the employees handbook?

It says 'the employee shall only be entitled to receive the amount of any statutory sick pay to which they are entitled under the Social Security Contributions Act 1992' - I don't know if that refers to it being paid, or not - do you know?

 

[BenJacobs]

It's all here:

https://www.acas.org.uk/checking-sick-pay/statutory-sick-pay-ssp#:~:text=It can be paid for,are called 'waiting days'.

Thank you. It says 'It should also say in the contract or the organisation's policy whether the first 3 days of sickness absence are paid or unpaid.' - but it doesn't say either way.

 

[BenJacobs]

Statutory sick pay has a waiting period of 3 days so it is correct to have no pay for this period.

The gross should be amended not the net - are you sure the deduction is after tax? That bit isn't correct.

It doesn't seem like this part is correct. 2 x days of gross have been taken out of the salary, rather than net. So rather than being deducted 2 x £82 (post tax take-home amount), they've been deducted 2 x £100 (pre-tax take home amount). That part doesn't add up to me?

 

[HFE Signs]

I'd check with the person running the payroll, could be a mistake, the deduction should be off the gross, not the net. As others have said the 3 day period applies on SSP but check your contract/handbook to confirm the terms of your employment. If your contract/handbook is not clear and it only states SSP then it is simply the 3 day waiting period, so unfortunately nothing is due to you.

 

[Newchodge]

1. SSP is payable by the employer only in accordance with the rules. There is no legal right to any other sick pay unless the contract specifies there is such a right.

2. SSP is only payable if someone is ill for 4 consecutive calendar days and the first 3 working days of absence, nothing is payable. (The government claims it is going to do away with this no-pay period).

3. In deducting the days not worked the gross pay is reduced by the correct amount, which should but isn't required to be, stated on the payslip. So if gross pay is £100 per day they should have gross pay of normal amount minus £200. Tax and NI are then applied to the reduced gross amount.

 

[Ziggy2024]

It doesn't seem like this part is correct. 2 x days of gross have been taken out of the salary, rather than net. So rather than being deducted 2 x £82 (post tax take-home amount), they've been deducted 2 x £100 (pre-tax take home amount). That part doesn't add up to me?

Yes it's correct to amend the gross. If this didn't happen then the employee would be taxed on salary they haven't earned or received.

It sounds like everything has been done correctly. The contract says stat sick only which means that the days not worked have been taken off the salary.