Sick leave is one of the most frequently used and most frequently misunderstood areas of UK employment law. From Statutory Sick Pay (SSP) rules to fit note requirements and absence management procedures, getting your sick leave policy right protects both your employees and your business. This template provides a clear, SSP-compliant sick leave policy for UK small businesses.
Key Takeaways
- SSP is £118.75 per week (2025–2026) for up to 28 weeks, payable from the 4th day of incapacity.
- Employees need at least 2 days of continuous incapacity before SSP applies (the “waiting period”).
- Fit notes are required after 7 days of absence (including weekends and bank holidays).
- A fair absence management policy reduces unplanned absences and supports employee wellbeing.
What This Template Covers
This template provides a complete sick leave policy for UK small businesses. It covers Statutory Sick Pay (SSP) entitlements, company sick pay (if enhanced), notification and certification requirements, fit notes, absence management, phased returns, and long-term sickness. It is designed for businesses with fewer than 250 employees.
Sick Leave Policy Template
1. Purpose
[Company Name] is committed to supporting employees who are unable to work due to illness or injury. This policy outlines the sick leave arrangements, pay provisions, and absence management procedures that apply to all employees.
2. Scope
This policy applies to all employees of [Company Name], including those on probationary periods and fixed-term contracts.
3. Statutory Sick Pay (SSP)
All employees who meet the eligibility criteria are entitled to SSP under the Social Security Contributions and Benefits Act 1992. Key provisions:
- SSP rate (2025–2026): £118.75 per week.
- Eligibility: Average weekly earnings of at least £123 per week (lower earnings limit).
- Waiting period: SSP is payable from the 4th consecutive day of incapacity (days 1–3 are unpaid, known as “waiting days”).
- Maximum duration: SSP is payable for up to 28 weeks in any period of incapacity.
- Waiting days rule: If the employee has received SSP within the previous 8 weeks and had at least 4 weeks between the end of the previous SSP period and the new period of incapacity, waiting days do not apply.
4. Company Sick Pay (Enhanced)
[Company Name] offers enhanced sick pay beyond the statutory minimum:
- [Option A — Full pay for X weeks]: Employees receive full pay for the first [X] weeks of absence, followed by SSP for the remaining 28-week entitlement.
- [Option B — Half pay for X weeks]: Employees receive half pay for the first [X] weeks, followed by SSP.
- [Option C — SSP only]: The company provides SSP only, in accordance with the statutory entitlement.
- [Long-term sickness: After [X] weeks of continuous absence, [Company Name] may review the employee’s pay and consider whether extended absence management procedures apply.]
5. Notification Requirements
Employees must:
- Notify their line manager on or before the start of their normal working day on the first day of absence.
- Provide the reason for absence (employees are not required to disclose a specific diagnosis, but a general indication of the nature of the illness is helpful).
- Provide an expected return date where possible.
- If the absence is 7 days or more (including weekends and bank holidays), provide a fit note (medical certificate) from a GP or other registered medical practitioner.
6. Fit Notes
- Employees must obtain a fit note from their GP after 7 consecutive days of absence (including non-working days).
- The fit note may state “not fit for work” or “may be fit for work” with specific advice.
- Where the fit note states “may be fit for work,” [Company Name] will discuss reasonable adjustments or a phased return.
- Self-certification (SC2 form) is acceptable for absences of 3–7 days.
7. Absence Management
[Company Name] operates a fair and supportive absence management process:
- Informal discussion: After [2–3] periods of short-term absence in a 12-month period, the employee’s line manager will hold an informal conversation to discuss any underlying issues.
- Formal meeting: If absence levels remain a concern, a formal meeting will be held under the company’s absence management procedure. The employee has the right to be accompanied.
- Occupational health referral: Where appropriate, [Company Name] may refer the employee to an occupational health professional for advice on workplace adjustments or fitness to return.
- Long-term absence: For absences exceeding [12 weeks], [Company Name] will review the employee’s situation, consult with occupational health, and explore options including reasonable adjustments, redeployment, or other support.
8. Phased Return
Following a period of long-term sickness, [Company Name] supports phased returns through:
- Graduated increase in hours over [X] weeks
- Temporary adjustment of duties or responsibilities
- Flexible working arrangements during the transition
9. Return to Work
- A return-to-work interview will be held on the employee’s first day back from any period of absence lasting 5 or more days.
- The interview is supportive in nature and aims to identify any ongoing issues or adjustments needed.
- Employees are encouraged to raise any concerns about returning to work.
10. Policy Review
This policy will be reviewed annually or following changes to SSP rates, the lower earnings limit, or relevant legislation.
Legal Requirements Summary
| Requirement | Detail |
|---|---|
| SSP rate (2025–26) | £118.75 per week |
| Lower earnings limit | £123 per week |
| Waiting period | 4th day of incapacity (3 waiting days) |
| Maximum SSP duration | 28 weeks |
| Fit note threshold | After 7 consecutive days of absence |
| Self-certification | Days 3–7 (SC2 form) |
| Long-term sickness review | No statutory timeframe; best practice at 4–12 weeks |
Customisation Tips
- Offer enhanced sick pay. The statutory minimum (£118.75/week) is very low. Offering full or half pay for the first few weeks is a valued benefit and can significantly improve retention.
- Define “continuous absence.” Clarify whether separate short-term absences are counted individually or cumulatively for absence management purposes.
- Add mental health provisions. Mental health conditions are covered by disability discrimination law. Ensure your policy addresses mental health absences sensitively.
- Address disability-related absence. Under the Equality Act 2010, disability-related absences may need to be treated differently in absence management. Seek legal advice for complex cases.
Common Mistakes to Avoid
- Failing to pay SSP. SSP is a legal obligation for eligible employees. Non-compliance can result in penalties and employment tribunal claims.
- Requiring a fit note too early. Fit notes are only required after 7 consecutive days. Requiring them earlier places unnecessary burden on employees and GPs.
- Not counting waiting days correctly. The 3-day waiting period applies at the start of a new period of incapacity. If the employee has recently received SSP and had a gap of 4+ weeks, waiting days may not apply.
- Ignoring disability-related absence. Long-term absences related to a disability may be protected under the Equality Act. Treating all absences the same without considering disability can lead to discrimination claims.
- Not conducting return-to-work interviews. These are a simple but effective tool for managing absence and supporting employees back to work.
Frequently Asked Questions
Can we require a fit note for absences of fewer than 7 days?
You can request a fit note earlier than 7 days, but the employee is not legally required to provide one until after the 7th day. If you require a note earlier, the employee must pay for a private medical certificate (GPs will not issue an NHS fit note until day 8). Consider whether this is a reasonable requirement.
How long does SSP last?
SSP is payable for up to 28 weeks from the first day of entitlement. If an employee’s absence exceeds 28 weeks, SSP stops. The employee may then be eligible for Employment and Support Allowance (ESA) or other state benefits.
Can we dismiss an employee for long-term sickness?
Dismissal for long-term sickness is possible but must follow a fair process. This typically includes: obtaining medical advice (occupational health), considering reasonable adjustments, exploring alternative employment, and allowing the employee to make representations. Failure to follow a fair process can result in an unfair dismissal claim.
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