12.03.2020

Budget 2020: lack of self-isolation clarity for Statutory Sick Pay

Yesterday (11 March) the Chancellor of the Exchequer, Rishi Sunak, presented his budget to Parliament which included a package of measures to support public services, individuals and businesses affected by Covid-19.

Pledging to do "whatever it takes to support the economy through the disruption caused by Covid-19" the Chancellor announced the government will provide a £12 billion stimulus to the UK economy to deal with the outbreak, now declared as a pandemic by the World Health organization (WHO).

Commenting on the employment-related COVID-19 announcements by the Chancellor, Kirsty Rogers, employment partner at DWF said: "The 2020 Budget confirms the Prime Minister's announcement that the forthcoming COVID-19 Bill will for the time being allow SSP to be paid from the first day of sickness absence, rather than the fourth day, for those who have COVID-19, or who have to isolate in accordance with government guidance. The Budget also confirms that individuals who are unable to work because they have been advised to self-isolate and individuals who have the responsibility for caring for people in the same household who display COVID-19 symptoms and have been told to self-isolate will also be eligible for Statutory Sick Pay ("SSP"). It is not clear if this covers people who are caring for people who are required to self - isolate but do not have symptoms. It does not appear to. If you are caring for a child who is off school but does not have symptoms, or anyone else who is self - isolating but asymptomatic then SSP would not appear to apply although there is a right to time off for dependents.

"Employers have a duty of care to their workforce and should discourage employees from coming into work when they should be self-isolating. The measures set out by the government assists employees and offer assurances that some form of pay will continue from day one of sickness and in an approved isolation scenario. Employers need to be mindful that an employee receiving less than full pay will be motivated to return to work and to full pay – this poses a risk to the wider workforce. As a priority, continuity plans should be implemented by businesses, from homeworking to travel restrictions – putting the business in the best possible position.

"Additional measures have been set out in the Budget for those ineligible for Statutory Sick Pay. The government has recognised that self-employed individuals need some form of assistance and has set out a number of steps to assist with a "new style" Employment and Support Allowance payable for people directly affected by COVID-19 or self-isolating according to government guidance. These measures are applicable from the first day of sickness, rather than the eighth. This protection is a sensible step in the direction for public health and safety. With the significant growth in the gig economy, protecting this sector is undoubtedly a priority. By way of example, many individuals in the courier industry are currently categorised as self-employed contractors – measures must be taken to ensure these people have access to benefits. Failure to do so will inevitably lead to a risk to public health and safety as contractors may feel they have no option but to work if protection is not available during periods of isolation or sickness.

"As part of a £30 billion coronavirus package, Chancellor Rishi Sunak, has also announced support for small and medium sized employers (250 employees or fewer) by refunding eligible Statutory Sick Pay ("SSP"). Refunds will be limited to two weeks for any employee who has legitimately claimed SSP as a result of COVID-19. This announcement will come as a welcome relief for small and medium sized employers who undoubtedly will experience financial hardship as a result of the virus. The government has set out in the 2020 Budget a clear priority of protecting people's jobs. Whilst protecting the health and safety of the population is undoubtedly the number one priority; keeping the economy stable is also critical. Providing employers with this assistance is undoubtedly a step in the right direction."

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