sick pay


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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 ?
Asda insisted: "There is no difference to sick pay entitlements for colleagues serving their notice period as part of the contract changes."
The consultation puts forward a holistic package of measures that could help, such as introducing a more flexible approach to Statutory Sick Pay that would enable a phased return to work.
Proposals also include money for small businesses in the form a sick pay rebate, so that their staff can get back to work when fully recovered.
The situation is different for public sector or larger employers, where contractual sick pay is more generous, sometimes as much as six months full pay and six months half pay.
The most serious problem appears to be that Richardson may have overdrawn her "time management" account - that is, she may have claimed compensation for more sick pay and vacation time than she had actually accrued.
It appears that many companies are either unsure of their responsibilities in terms of sick pay obligations, or just continue to pay those who are off sick long-term, despite them contributing nothing to the profitability of the business.
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 5.93 an hour minimum wage.
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.
Nineteen unionized employees from the Canadian National Institute for the Blind's (CNIB) Winnipeg office went on strike Monday, March 15, 2010, in a dispute over sick pay. The striking workers are service providers who help people adjust to new or worsening visual impairment.
I was signed off sick by my doctor and I did receive Statutory Sick Pay. 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.