Zero Hours Contract & Statutory Sick Pay (SSP) Explained: Am I entitled to sick pay?

Zero-hours contract workers often find themselves unsure of their entitlement to sick pay. This common question raises concerns about financial security during periods of illness. So, are you entitled to Statutory Sick Pay (SSP) if you’re on a zero-hours contract? Let’s find out.

Key Takeaways:

• Zero-hours contract workers may be entitled to Statutory Sick Pay (SSP) if they meet certain eligibility criteria.
• To qualify for SSP, you must have started employment, be sick for four or more full days (including non-working days), and have average earnings of at least £123 per week before tax.
• Zero-hours contract workers can receive both SSP and contractual sick pay from their employer simultaneously.
• Specific rules and considerations apply to zero-hours contract workers in situations such as maternity leave or phased returns to work after illness or surgery.
• It is crucial for employers to accurately calculate and pay sick pay to zero-hours contract workers to avoid fines and potential employment tribunal claims.

Qualifying for SSP on a zero-hours contract

To determine your eligibility for Statutory Sick Pay (SSP) on a zero-hours contract, you need to understand the concept of qualifying days and calculate your average weekly earnings within a relevant period.

Qualifying days: Qualifying days are the shifts that occur on the same day from week to week. By looking back at your schedule for the past eight weeks or longer if it supports your case, you can identify these qualifying days.

Relevant period: The relevant period is the timeframe used to ensure a fair representation of your average earnings. It starts the day after the last normal payday falling at least eight weeks before the end date of the relevant period.

Calculation of average weekly earnings: To be eligible for SSP, your average weekly earnings must meet or exceed the lower earnings limit of £123 per week. You can calculate your average weekly earnings by dividing the total amount of earnings over the weeks within the relevant period by eight.

An example:

In this example, the total earnings over the weeks within the relevant period is £1,100 (£150 + £130 + £140 + £120 + £140 + £130 + £150 + £140). Dividing £1,100 by 8 gives an average weekly earnings of £137.50. Since this amount is above the lower earnings limit of £123 per week, you would be eligible for SSP.

Calculating sick pay for zero-hours contract workers

Calculating sick pay for zero-hours contract workers is an important process that determines their eligibility for Statutory Sick Pay (SSP). This involves calculating their average weekly earnings within the relevant period, which plays a key role in determining whether they meet the eligibility criteria. By accurately calculating and paying sick pay, employers can ensure compliance and avoid potential fines and legal issues.

Understanding the relevant period

The relevant period is the timeframe used to capture a fair representation of a zero-hours contract worker’s earnings. It starts the day after the last normal payday falling at least eight weeks before the end date of the relevant period. This period is crucial because it encompasses the worker’s earnings and helps establish their average weekly earnings.

Calculating average weekly earnings

Once the relevant period is established, employers need to calculate the average weekly earnings of zero-hours contract workers. This is done by adding up the total amount of earnings over the weeks within that period and dividing it by eight. The result is the average weekly earnings, which is a significant factor in determining the worker’s eligibility for SSP.