Payroll errors seldom arise from one-off absences.
The real challenge begins when an employee returns to work, only to fall ill again shortly afterwards.
If the second absence falls within a specific legal window, employers may unknowingly miscalculate Statutory Sick Pay (SSP).
The issue stems from linked periods of sickness, which can affect entitlement, timing of payments, and compliance with employment law.
Two or more absences are treated as a continuous period for SSP purposes when they occur within eight weeks of one another and each absence meets the threshold of a Period of Incapacity for Work (PIW), defined as lasting four or more consecutive days, including weekends and non-working days.
This legal framework is established under section 152 of the Social Security Contributions and Benefits Act 1992 (the Act).
Where absences are linked, the first three unpaid days of illness do not reset for the second absence.
This means that SSP may begin from day one, rather than day four. Getting this wrong could result in both underpayments and employee grievances.
If the gaps between absences exceed eight weeks, or one absence is too short to qualify as a PIW, the link breaks and waiting days apply again.
Take this example:
To remain compliant and avoid risk:
With potential reforms on the horizon, including discussions around abolishing waiting days and removing the Lower Earnings Limit, understanding current SSP mechanics is important.
Uncertainty over entitlement can easily escalate into dispute or mispayment.
