Umbrella company contractors need to know and understand the importance of Statutory Sick Pay (SSP) and not leave it for the time when the situation arises. SSP is often ignored and contractors only look into it when they have to. This might not be the right approach.
Sick pay is a protection, a benefit that an umbrella company contractor is entitled to. Hence, it is important to be aware of the criteria so that you can be ready should the situation arise.
Umbrella company contractors are entitled to £96.35 per week for up to 28 weeks. This is the standard rate of umbrella company sick pay.
Eligibility Criteria for Umbrella Company Sick Pay
To be eligible for umbrella company sick pay, you must have been ill for 4 or more days consecutively, this includes weekends. One important thing to note here is that the umbrella company employee should inform their umbrella company about the illness within 7 days and the information needs to be error-free and correct. If the 7-day timeline is not met, you could potentially lose some of your sick pay and you would need to furnish a sick note from the Doctor.
It is also important to note that, a contractor must have spent some time working on their contract and must have a contract with the umbrella company as proof of employment.
If you have been ill for more than seven days then you’ll need to provide illness proof, a Doctor’s note. Also, you must have earned an average of about £120 per week before tax and National Insurance.
How does Covid-19 affect the Statutory Sick Pay (SSP)?
There have been some temporary amendments made to the Statutory Sick Pay (SSP) to accommodate the Covid-19 situation. Rules, regulations and criteria have been modified to accommodate Covid-19 related issues.
Due to Covid-19, temporarily statutory sick pay is being paid from the 1st day of the illness instead of the fourth, for contractors who have had the virus or had to self-isolate themselves as a family member from the same household has had the virus or been advised to self-isolate, per government guidelines.
A notification from NHS111 shall work as evidence and a Doctor’s note would not be required.
It is important to note that only “working days” as defined in the contract will be covered and not all days.
Who is not eligible for Statutory Sick Pay (SSP)?
If you have already received the maximum amount of statutory sick pay and hit the 28-week limit, you would not be eligible.
Also, if you are already receiving statutory maternity pay or allowance, you will not be able to claim SSP.
You must also be working in the UK should be making National Insurance Contributions (NICs). Lastly, those who are working outside the UK or those who are on strike or in custody will not be eligible.
How to claim Statutory Sick Pay (SSP)?
To claim Statutory Sick Pay (SSP), you will need to inform your umbrella company through email, or telephone call. Always check with your umbrella company beforehand on the ways to claim SSP and don’t leave it for the last minute.
Final words
SSP is an employee’s right, so please do not hesitate or feel shy about applying for it. For any queries, please feel free to contact us at [email protected] and we shall be happy to assist you in any way we can.
You may also want to look at our Top Umbrella Companies page if you are looking for some really good umbrella companies to work with.