Employer to Cover Statutory Sick Pay Costs

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New legislation came into effect on 6th April, 2014 making employers wholly responsible for the payment of all Statutory Sick Pay (SSP) and preventing them from being able to reclaim SSP from the Government.

Up to that date, employers have been able to reclaim any amount of SSP that exceeded 13% of the Company national insurance contributions in that month.

Why you may well ask? Apparently, the thinking is that it gave employers an incentive not to encourage employees who were absent on long-term sick leave to return to work.

It is estimated that £50m per year will be saved and will contribute to the new Health and Work Service which is due to commence in April 2015 assisting employers and employees to agree plans to facilitate a return to the workplace.

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