Will Statutory Sick Pay reforms threaten your small business? ClearSky investigates

With changes to sick pay regulations threatening the profitability of Britain’s SMEs, ClearSky Business has published an article on its official blog that summarises the reforms.

The article, entitled “Statutory sick pay (SSP) reforms threaten small firms” revealed that the recent abolition of the Percentage Threshold Scheme (PTS) has removed an employer’s right to reclaim statutory sick pay (SSP) from HM Revenue & Customs (HMRC).

PTS had been designed to protect businesses with above average rates of sickness absence, but was abolished in April 2014 after an independent review found that the scheme did not encourage employers to pro-actively manage sickness absence.

Instead, the government aims to combat absence rather than subsidise it, with the introduction of the Health and Work Service. The scheme, launched later this year, will provide businesses with free medical assessments and treatment plans. The hope is that employees will enjoy better health and shorter sickness absences. However, a company with a staff sickness absence problem could find itself out of pocket and without the ability to claim back SSP.

Fortunately, there are steps that a company can take to safeguard its interests. As the ClearSky article explains, employers have until April 2016 to claim back SSP paid up until 5th April 2014. From that point onward, it’s up to every business to put in place a robust sickness absence policy geared toward tackling and reducing absenteeism.

The article is a must-read for any small business that stands to lose out because of the changes. More information is also available from the ClearSky Business support team. Experienced HR advisors are ready and waiting to provide advice and support on managing sickness absence in the workplace. All you have to do is call 0808 147 1921. For more information, visit http://www.clearskybusiness.co.uk. 

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