Few employers disagree with the objectives of day one sick pay, but there could be adverse impacts on hiring behaviour, writes George Reed

The government’s proposal to introduce Statutory Sick Pay from the first day of illness has been framed as a modest, technical adjustment to the existing system. In isolation, it might appear exactly that. In practice, however, day one sick pay represents a meaningful shift in how employment risk is distributed, and businesses are already responding accordingly.

Under the current framework, Statutory Sick Pay becomes payable from day four of absence. The proposed reform would move that obligation to day one, while also removing the Lower Earnings Limit, extending eligibility to millions of lower-paid and part-time workers. The intent is clear. Greater protection, earlier support and fewer gaps in coverage. Few employers would disagree with those objectives.

The issue is not the principle. It is the cumulative impact.

These changes sit alongside a broader programme of employment reform, including expanded family and parental leave rights, tighter redundancy protections, pressure on an already stretched........

© City A.M.