The Immediate Impact
As well as payroll updates, businesses should review absence policies, financial forecasts and management processes.
Paying SSP from day one is likely to increase the cost of short-term sickness absence, particularly in organisations where one or two-day absences are common. For businesses with large teams, shift-based roles or tight margins, even a small increase in short-term absence could have operational and financial implications.
Boards and leadership teams should be asking:
- Have we modelled the additional cost exposure?
- Do our budgets reflect the potential increase in paid short-term absence?
- Are workforce planning assumptions still accurate?
HR and Policy Considerations
For HR teams, this is a good time to review absence management processes. Clear reporting procedures, consistent return-to-work conversations and defined trigger points for absence reviews will be increasingly important.
Day-One SSP does not prevent employers from managing absence, but it does place greater emphasis on fair and consistent processes. Managers should feel confident in handling conversations, identifying patterns early and documenting decisions properly.
Supporting Employees While Protecting Operations
The reform is intended to reduce financial pressure on employees who are genuinely unwell. However, businesses will be naturally concerned about how they can protect operational continuity. Our advice would be to maintain a supportive culture while ensuring expectations are clear and consistently applied.
What Employers Should Do Now
- Review and update absence policies
- Model potential cost implications
- Strengthen absence reporting and oversight
- Ensure managers are trained to apply policies confidently
For further advice on HR issues including SSP and the Employment Rights Act 2025, please contact Swift People Services on +44 333 023 1700 or visit www.haddletons.com.