sick pay


Also found in: Dictionary, Thesaurus, Medical, Wikipedia.

sick pay

the payments made to an employee who is unable to work normally due to illness. In principle these payments could be made in place of a wage, from a national insurance fund, or by the employers themselves. The current system of ‘statutory sick pay' in the UK (in operation since 1986) combines elements of both. The employer makes payments to the sick employee at a level determined by social security regulations, which are financed out of the National Insurance contributions held by the employer. No payments can be made until the fourth day of absence (unless there has been a previous period of absence due to illness shortly before). After seven days of absence a doctor's certificate is necessary; prior to that the employee provides self-certification. After a prolonged period of sickness absence (currently 28 weeks) responsibility for payment transfers to the DEPARTMENT OF WORK AND PENSIONS.

Many UK employers choose to operate their own sick-pay scheme alongside statutory sick pay, and provide more favourable benefits than the state scheme. Although, traditionally, occupational sick-pay schemes have been applied to managerial and white-collar rather than to blue-collar workers, most UK employees are now covered, by such a scheme. Often they will provide for the employee to receive full pay for up to 28 weeks. Provision of favourable sick pay is often thought to encourage ABSENTEEISM but the evidence suggests that this a short-run phenomenon largely confined to the period immediately after the scheme is introduced.

References in periodicals archive ?
This would make sure workers had day-one rights such as holiday and sick pay entitlement, and a new right to a payslip.
Employees are entitled to statutory sick pay if they are too ill to work and have been off work for more than four days in a row.
The Unite formal grievance alleges that ISS is treating staff as "second-class workers" - but the company has argued that the claims are "largely false" and said sick pay was higher than the legal minimum.
The conversion of sick pay and vacation time to take-home pay is also problematic, regardless of whether Richardson overdrew her account.
By taking out an income insurance plan, an employer turns a potential unbudgeted loss into a fixed monthly cost--this means that, for a set amount a month, the possibility of a business paying out unscheduled sick pay for an unknown period of time is eliminated.
The scrapping of the Agricultural Wages Board means farmers could deny their labourers pounds 260 a week sick pay, dock three days' annual holiday and give them only the pounds 5.
Unison said it was "angry and frustrated" after discovering that many contracted-out catering and cleaning workers in schools and hospitals were denied sick pay, even if they were on the minimum wage.
Delcy-Arm Selymes, executive director of CNIB's Manitoba-Saskatchewan region, said the organization simply wants to bring the sick pay plan into step with the plans of other CNIB workers across Canada, most of whom do not belong to a union.
My employer refused to pay me contractual sick pay on top.
Sick pay has been debated recently in several economies, including the US, Germany and Sweden.
A sick pay or short term disability plan is a plan that continues employees' salary or wages for a limited time during periods of illness or other disability.