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    Home»Finance»Finance lawyer explains huge sick pay changes now in force
    Finance

    Finance lawyer explains huge sick pay changes now in force

    April 8, 20263 Mins Read


    From April 6, changes under the Employment Rights Act 2025 mean more employees are eligible for sick pay and can receive it from the first day of illness.

    But while the reforms mark a significant shift in policy, some experts warn that workplace culture may limit how far they change behaviour in practice.

    What has changed?

    Under the new rules:

    • The minimum earnings threshold has been removed, widening eligibility
    • Statutory sick pay is now available from day one of illness
    • Weekly payments have risen to £123.25
    • A new calculation means some workers receive 80% of normal earnings

    The government has said the reforms are designed to improve financial security for workers and better reflect modern working patterns.

    ‘Rights on paper’ may not be enough

    Charles Hipps, chief executive of recruitment firm Oleeo, said there is a risk the changes may not translate into widespread use.

    “The danger is these rights exist on paper, but people don’t actually use them,” he said.

    “In many workplaces, employees are still trying to prove themselves, especially in a new role. Taking time off early can feel like a risk, even when it shouldn’t be.”

    He added that the same pressures can affect those seeking promotion or trying to remain visible at work, with some feeling they must be constantly available.

    Presenteeism still a concern

    Despite expanded rights, expectations around being present at work remain strong in many organisations, according to Mr Hipps.

    “There’s still a strong expectation in many workplaces that being present means being committed,” he said.

    “That leads to people working through illness, checking emails late at night, and not properly switching off.”

    Over time, he warned, this can affect both productivity and long-term health.

    Hybrid working blurs the lines

    The shift towards hybrid and remote working has also changed how employees respond to illness.

    Working from home can make it harder to distinguish between being well enough to work and needing time to recover, Mr Hipps said.

    “Instead of taking a day off, many people now just work from home while sick,” he added. “On the surface that looks productive, but in reality, it often means people aren’t properly recovering.”

    He said what starts as logging on briefly can often turn into a full working day, contributing over time to fatigue and burnout.


    Recommended reading:


    Removal of Lower Earnings Limit (LEL)

    Finance lawyer Hannah Waterworth has explained each major reform she believes employers and employees need to know.

    Hannah said: “The April 2026 SSP reforms represent a major shift in the UK’s approach to sick pay, expanding access and enhancing financial protection for employees.

    “While these changes introduce additional costs and compliance requirements for employers, early preparation will support a compliant and well‑managed transition.”





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