Statutory Sick Pay: how different employment types affect what you pay
Find out about different rules for entitlement that affect some employment types, including agency workers, directors and educational workers.
All employees, and certain groups of workers, are eligible for Statutory Sick Pay (SSP) as long as they meet the other qualifying conditions. These groups are classed as employees for the purposes of SSP.
Casual, short-term and zero hour contracts
Individuals who are classed as employees for the purposes of SSP and are on casual, short-term or zero-hours contracts are eligible for SSP as long as they meet the other qualifying conditions.
The period for which SSP is due is different depending on whether or not the employee has had 3 months’ continuous employment with you.
The 3-month continuous period does not have to be immediately before a period of sickness, and is not broken:
- by periods of sickness
- by annual leave
- if the employee was not offered work
It is only broken by a trade dispute, such as strike action, or if the employee has been given written termination of their contract.
If the employee has had at least 3 months’ continuous employment with you
The contract is considered as an indefinite period, and the employee is treated as an employee with a permanent contract, unless their contract states otherwise.
This means that eligibility for SSP continues for the entire period of incapacity for work unless either:
- the employee is given written notice that their contract has come to an end
- eligibility to SSP ends for another reason (for reasons other than avoiding liability for SSP) as detailed on the SSP1 form
If the employee has not had 3 months’ continuous employment with you
Eligibility for SSP continues until the end of any period the employee had agreed to work.
It does not continue for the entire period of incapacity for work if this continues after the period for which the employee had agreed to work.
If the employee had been offered and accepted other work, for example another assignment, with the same employer, eligibility will continue until the end of the last assignment, unless the employee has been given written notice that their contract has come to an end.
Agency workers
You can check your employment status for tax, in conjunction with the terms of the working relationship. This can be a helpful indicator of categorising an agency worker’s status.
Subject to the terms of working relationship, agency workers can be categorised as:
- workers
- employees
- self-employed
Agency workers who are categorised as employed earners and meet the other qualifying conditions will be eligible for SSP.
Employed earners are people who are gainfully employed in Great Britain under a contract of employment, or in an office with earnings, or who are engaged under other forms of contract but classed as employed earners for the purposes of SSP. An agency worker will meet this definition if they are engaged under a contract of employment or if they are otherwise supplied by agencies to work under the supervision, direction, and control of the client.
Agency workers with overarching contracts which continue between assignments are, subject to them being employed earners and meeting the qualifying conditions, entitled to SSP for the entire period of incapacity until their contract ends (for reasons other than avoiding liability for SSP) or entitlement to SSP ends for another reason as detailed on the SSP1 form.
Agency workers whose contract does not continue between assignments are subject to them being employed earners and meeting the qualifying conditions entitled to SSP for the entire period of incapacity for work until the assignment ends (for reasons other than avoiding liability for SSP) or entitlement to SSP ends for another reason as detailed on the SSP1 form.
Agency workers who are employed earners and meet the qualifying conditions become eligible for SSP from the first day on which they have done some work under their contract. For agency workers who have an agreed future assignment which is to commence no later than 8 weeks after the end of the current assignment, SSP eligibility will arise from day one of that future assignment, as though it were the same assignment, even if they have not done any work under the future assignment.
Self-employed agency workers
Self-employed individuals, including self-employed agency workers, are not eligible for SSP.
Educational workers
Educational workers, including teaching assistants, lecturers, nursery workers, school bus drivers and kitchen staff, are eligible for SSP provided they meet the other qualifying conditions.
Where they have a period of incapacity outside of term time, their eligibility depends on the type of contract.
If the employee has a contract that continues throughout the year, including between term times
Eligibility for SSP continues as it would for an employee with a permanent contract of employment.
This means that eligibility continues for the entire period of incapacity for work unless the employee is given written notice that the contract has come to an end (for reasons other than avoiding liability for SSP) or eligibility to SSP ends for another reason as detailed on the SSP1 form.
If the employee has a contract that only lasts for the school term, and not outside of term times
Eligibility for SSP ends with the school term times and so the individual is not eligible to SSP for periods of sickness which occur outside of term time.
Where one contract ends and a new one begins
Eligibility for SSP ends with the end of the first contract.
Where the individual falls sick between contracts, there is no eligibility for SSP for the period between contracts.
If the new contract begins within 8 weeks of the end of the old contract, then the 2 contracts will be treated as one, provided they are with the same employer. If the employee has done some work under the old contract then they will be eligible for SSP when the next contract begins, even if they have not done any work under the new contract.
Employees with one or more contracts
Some employees may have 2 or more contracts with the same or with different employers. They may be incapable of work under one contract but capable of work under another. What an employee receives depends on whether their earnings are aggregated across the contracts for the purpose of National Insurance contributions.
Where the same or different employers are trading in association and the employee’s earnings are aggregated for the purpose of National Insurance contributions:
- the employee’s average weekly earnings are also aggregated for the purpose of determining whether they earn enough to qualify for SSP
- they must be incapable of work under all the contracts before they receive SSP
- they will only receive one amount of SSP which covers all the contracts
Where the employee’s earnings are not aggregated, including where the employee may have two separate jobs or contracts
The employee’s average weekly earnings are calculated separately for each contract for the purpose of determining whether they earn enough to qualify for SSP.
They can be incapable of work under one but not all contracts and still receive some SSP.
They can receive more than one amount of SSP.
Agricultural workers
The rules for Agricultural workers are different depending on whether the individual was employed before or from 1 October 2013. There are also different rules for Northern Ireland, Scotland and Wales.
Agricultural workers in England who were employed before the rules changes on 1 October 2013 may be eligible for Agricultural Sick Pay rather than Statutory Sick Pay. All other Agricultural workers in England, including those employed from this date, or otherwise not covered under these terms and conditions are eligible for Statutory Sick Pay provided they meet the other qualifying conditions.
Directors
Directors will need to meet the SSP qualifying conditions, this includes their average weekly earnings being at least the Lower Earnings Limit (LEL).
The way a director calculates their average weekly earnings differs according to how they are paid. Usually, any earnings that directors get from the business will count towards this amount unless otherwise specified, this includes:
- director fees
- dividends
- wages for other work they may do within the company
If a director is paid contractually by a regular salary
Their average weekly earnings are calculated as they are for any other employee considering eligibility for SSP.
If a director is paid only by a formal resolution
If payment is agreed only following a formal resolution, the director’s average weekly earnings are calculated by substituting the dates of the formal resolution in place of normal paydays.
Any payments made in anticipation of the resolution are not taken into account for the purpose of calculating average weekly earnings even if National Insurance contributions were deducted at the time of payment.
If a director is paid only by a determination of directors
If payment is agreed following a determination of directors, rather than a formal resolution, the director’s average weekly earnings are calculated by substituting the date of payment in place of normal paydays.
If a director is paid both contractually and by a formal vote or determination of directors, for example if they are paid a salary and a then a bonus
They will calculate average weekly earnings like any other employee.
They will count the separate payment on the date of payment, even if it was agreed by a formal resolution.
Employees working outside Great Britain on the first day of a period of incapacity for work
If an employee is working outside Great Britain on the first day of a period of incapacity for work, they are eligible for SSP as long as:
- they meet the other qualifying conditions
- the employer is liable to pay Class 1 (Secondary) National Insurance contributions, or would have if the employee’s earnings were high enough
If the employee’s period of incapacity for work or linked period of incapacity for work continues but the employer’s liability to pay Class 1 (Secondary) National Insurance contributions ends, the employee’s eligibility to SSP continues until it stops for another reason such as the employee reaching their maximum allowance or no longer being incapable of work.
Mariners
A person who is employed as a mariner will be treated as an employee, even though they may not be employed in Great Britain (and so will be eligible for SSP as long as they satisfy the other qualifying conditions) if either:
- their employment is on board a British Ship
- their employment is on board a ship and the contract is entered into in the UK with a view to it being performed while the ship is on voyage, and the person who pays the wages (or where the person is the master or member of the crew of a ship, the owner of the ship) has a place of business in Great Britain
A person who is in employed as a master, member of the crew or radio officer on board any ship or vessel, if they are not covered by the above paragraph, may still be treated as an employee for the purposes of SSP, and so (if they meet the other qualifying conditions) be eligible for SSP, even if they are not employed in Great Britain, if either:
- they are a radio officer and their contract is entered into in the UK and the employer or person paying the radio officer has a place of business in Great Britain
- the contact is not entered into in the UK, the employer or person paying their wages has their principal place of business in Great Britain
However, mariners who are in employment as a master or member of the crew on a foreign-going ship or, in certain circumstances, who have been employed on foreign-going ships within the last 13 weeks of them becoming ill, will not be eligible for SSP, as they will not be treated as employees, even if they are employed in Great Britain.
Airmen
A person who is employed as an airman will be an employee for SSP purposes (and so eligible for SSP as long as they satisfy the other qualifying conditions) if their employer (or the person paying the earnings in respect of the employment), or the person under whose direction the terms of the airman’s employment and earnings are determined either:
- in the case of the aircraft being a British aircraft, has a place of business in Great Britain
- in any other case, has their principal place of business in Great Britain
In such circumstances, the person is treated as an employee for SSP purposes even if they are not employed in Great Britain.
An airman will not be eligible for SSP if they are not domiciled (have a country they permanently reside in), and have no place of residence, in Great Britain (unless there is a relevant reciprocal agreement between the UK and another country which applies to the relevant airman).
Continental shelf workers
A person who is employed as a continental shelf worker in a prescribed area will be treated as an employee for SSP purposes (and therefore will be eligible for SSP provided they satisfy the other qualifying conditions) even if they are not employed in Great Britain.
Updates to this page
Last updated 10 September 2021 + show all updates
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Guidance about the rules for agency workers including airmen and continental shelf workers has been updated.
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Information under 'Contract continues between term-times' has been updated.
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Information about Agricultural workers has been added to this guide.
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First published.