January 30, 2018
Millions of UK workers unaware of employer’s policy on statutory sick pay
Over 2.5 million UK workers are unaware of their employer’s policy on statutory sick pay and would face a significant salary shortfall if they were unwell and unable to work, claims new research from Direct Line. Just 4 percent of employees know how much they would be paid in statutory sick pay if they fell ill and many mistakenly believe that on average they would receive full salary for three and a half months if they were unable to work due to illness. In fact, 43 percent of firms reduce an employee’s wages to statutory sick pay after two weeks of an employee being off sick and one in six firms reduce wages to statutory sick pay after just four days. It is not only salaries people lose out on if they are off sick; one in five (21 percent) firms that pay bonuses withhold these if an employee has been off work on long term sick leave. More than a third of firms (33 percent) will pay bonuses based on pro-rata analysis of days worked and 14 per cent will pay a discretionary reduced rate.