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Changes to Sick Pay Puts Pressure On Retailers

A change to Statutory Sick Pay Regulations, rushed through the Westminster parliament by the Department for Work and Pensions, could put even more financial pressure on retailers.

The Percentage Threshold Scheme allowed employers to claim back SSP paid to staff who were unwell. The DWP took the decision to abolish the scheme with effect from April 2014 and used a revocation order rather than primary legislation to make the necessary changes – this meant there was little or no prior consultation with industry. Retailers will now have to pay the full SSP amount of £88.75 per week wholly by themselves.

 SGF Public Affairs Manager John Lee said,

“This measure was rushed through Westminster with very little fanfare. It’s only a few months later that we are seeing an impact on retailers in Scotland. The old scheme wasn’t perfect but retailers could claim something back , now they have to pay the full amount while paying for someone else to cover for the staff member who is off sick. This just adds even more to the cost of doing business. Our members must make sure they are claiming their full entitlement under the Employment Allowance for Employers NI Contributions to make up for some of the SSP cost”.