Short-Term Sickness: Adapting Absence Policies for the New SSP Era

Statutory Sick Pay (SSP) is changing – and for small businesses, that means it’s time to take a fresh look at your sickness absence policies. With the government set to remove waiting days and scrap the earnings threshold from April 2026, the SSP landscape will shift significantly. These changes aim to make work more accessible and fair for lower-paid employees – but for employers, they also bring fresh challenges.

If you’re running an SME, now is the time to get ahead. By updating your absence policies and equipping your managers with the right tools and training, you can support staff who are genuinely unwell while protecting your business from unnecessary disruption or increased costs.

What’s Changing with SSP?

As part of broader efforts to make work pay and improve support for workers, particularly in low-paid or part-time roles, the government has confirmed two major reforms to Statutory Sick Pay, effective from April 2026:

1. The removal of waiting days – Employees will become eligible for SSP from the very first day of illness, rather than after three unpaid ‘waiting days’.
2. The scrapping of the lower earnings limit – Currently, employees must earn at least £123 per week to qualify for SSP. This threshold will be removed, meaning even the lowest-paid staff will have access to sick pay.

These reforms aim to reduce financial barriers for workers who may otherwise feel unable to take time off when ill. But for employers, particularly in industries like hospitality, retail or care – where staff may be on low or variable hours – these changes could lead to an uptick in short-term absences and new cost considerations.

What Might This Mean for SMEs?

Removing waiting days and earnings thresholds will undoubtedly improve fairness and public health outcomes. However, for SMEs already operating with lean teams and tight margins, even small increases in unplanned absence can be disruptive.

You may notice more one- or two-day absences being reported, especially in roles where sickness was previously underreported due to lack of SSP eligibility. This could lead to challenges around scheduling, temporary cover, and tracking patterns over time.

It’s not about assuming bad faith – most people take time off because they need to. But without a robust absence policy and consistent processes in place, you could see a drift towards more frequent short-term absences that are difficult to manage.

Strengthening Your Short-Term Sickness Policies

The upcoming SSP changes make it more important than ever to have a clear, fair and legally compliant sickness absence policy. This doesn’t mean clamping down on people who are genuinely unwell. It means creating a framework that supports recovery, keeps your business moving, and helps you manage absence trends fairly and consistently.

A strong policy should outline:

• How and when staff should report absences
• What evidence is required for different lengths of absence
• How sick pay is handled, including statutory and any company enhancements
• The return-to-work process, including any necessary support or adjustments
• The procedure for monitoring repeated short-term absences

It’s also wise to review how your absence policy integrates with other areas such as flexible working, wellbeing initiatives, and health & safety. Consistency is key.

Best Practices for Managing Short-Term Absence

One of the simplest and most effective ways to manage short-term absence is to introduce return-to-work interviews. These brief, informal meetings help ensure employees feel supported while also making it clear that absence is noticed and recorded. It can help deter casual or avoidable absence without creating a punitive atmosphere.

Alongside this, it’s important to ensure policies are clearly communicated. Staff should know what’s expected of them, who they need to contact, and what happens when they return. If you have a company handbook or intranet, make sure the policy is easy to find and written in plain English.

Monitoring absence patterns is another key step. Keep records to identify any recurring issues, high-frequency absence, or potential underlying health concerns that may require additional support or formal review.

And don’t forget your managers. They are your frontline in dealing with absence, so they need confidence in how to apply your policy fairly and handle sensitive conversations with empathy and consistency. A little training goes a long way.

Balancing Compassion and Continuity

Supporting staff when they’re unwell is simply the right thing to do – and it helps retain loyal, healthy team members in the long run. But your policies should also protect your business from operational strain.

One approach is to phase your absence policy – for example, having a lighter touch for occasional absence, with more structured review processes if patterns emerge. Another is to maintain flexible resourcing options where possible, such as a bank of trained cover staff or the ability to redistribute tasks temporarily across your team.

Clear, proactive communication also helps. If employees understand how their absence impacts the wider team, they’re more likely to be mindful about taking time off – without feeling guilty when they genuinely need it.

How The HR Dept Can Help

At The HR Dept, we’re already supporting SMEs to prepare for the new SSP era. Whether you need help rewriting your sickness absence policy, training your managers on best practice, or putting monitoring systems in place, we’re here to guide you through.

We offer tailored policy reviews that ensure you’re legally compliant and operationally resilient. Our manager training sessions are practical, friendly and built for real-world application – no legal jargon, just sensible steps to take.

We also provide ongoing HR support to help track absence patterns, spot potential issues early, and respond appropriately, so your team stays healthy and your business stays on track.