Under new workers’ rights reforms, up to 1.3 million of the lowest paid employees will become eligible for statutory sick pay (SSP) for the first time.
The forthcoming Employment Rights Bill is set to remove the earnings threshold that currently excludes those earning under £123 a week from SSP eligibility. Additionally, it proposes to allow workers to receive the benefit from the first day of illness, eliminating the initial three-day waiting period.
The government is considering a tapered approach to payments, where workers could receive between 60% and 80% of their wages, subject to a cap at the existing rate of £116.75 per week. For instance, an employee on £100 a week would get £80 in SSP under an 80% rate, while someone earning £150 would receive the maximum £116.75, reports the Mirror.
Work and Pensions Secretary Liz Kendall said: “Sick employees face an agonising decision: stay home and lose a day’s pay, or soldier on and risk worsening their condition just so they can put food on the table and make ends meet. It’s a choice people shouldn’t have to make.”
Kendall added: “It is time to end the agonising decisions faced by thousands of people each and every day. It is time to fix our broken labour market and the poor pay, poor working conditions and poor job security that have been holding our economy back.”
A public consultation has been launched as MPs discuss a new bill that will transform the rights of 10 million British workers. The proposed legislation aims to enhance workers’ rights from their first day on the job, including entitlements to parental and bereavement leave, as well as protection against unfair dismissal.
Under the new rules, workers could save up to £600 annually in lost income resulting from the hidden costs of insecure work, such as childcare or transportation expenses for last-minute shifts, or lost hours. Approximately 2.4 million people in the UK are employed in irregular patterns, including zero-hours contracts, low-hours contracts, or agency jobs.
According to a poll by the Living Wage Foundation, these costs can amount to over £50 per month, or £600 per year, for 17% of workers. For nearly half (48%) of workers, the costs can range from £20 to £40 per month, or £240 to £480 per year.
However, the Government’s impact assessment acknowledges that implementing these plans will cost businesses up to £5 billion annually. The costs will disproportionately affect small and micro businesses due to “admin and compliance burdens,” as stated in the document.
The Government argues that the rules must apply to all businesses to prevent creating a “two-tier workforce” where some workers are entitled to rights that others are not. Unison General Secretary Christina McAnea highlighted the potential of the reforms to mark a significant shift towards more secure employment, likening them to “to turn the tide on insecure employment and deliver the biggest boost to UK workplaces in a generation”.
She further stressed the current plight faced by some workers: “Care staff, those working for private contractors delivering public services and others in precarious work must currently jump through hoops to get financial support when they fall ill.”
“People are having to go in to work, infecting their colleagues and those they care for, instead of staying at home to recover. Sick pay for all at a proper rate will ensure no one has to live a hand-to-mouth existence.”
Echoing the sentiment, TUC General Secretary Paul Nowak expressed his endorsement of the proposals as being advantageous for both the workforce and the broader economic picture. He remarked: “Driving up employment standards will boost living standards, productivity, and growth. That’s why the vast majority of managers support these plans.”
“Most employers in this country treat their staff well and do not use exploitative practices like zero-hours contracts and fire and rehire. By levelling the playing field on workers’ rights and protections this bill will give people more predictability and control over their lives. And it will stop decent firms from being undercut by the bad.”