Occupational sick pay policy template (UK, 2026)

How to use this template

• Replace everything in [square brackets] with your own details.
• ◆ marks a decision point. Choose one option, delete the others, and delete the decision box.
• Grey guidance notes are for you, not your employees. Delete them before you issue the policy.
• Market context comes from named UK sources, checked at source. Figures from the lumi reward benchmark show how UK employers answer each decision; see the full findings at lumihr.co.uk/research/occupational-sick-pay-2026.
• This template reflects UK law as at 20 September 2026. The SSP rate changes each April. Review the policy by 6 April 2027.
• This is general information, not legal advice. Take advice before adopting or changing a sick pay policy, particularly if it is contractual.

1. Purpose and scope

This policy explains what [Organisation] pays when you can't work because of sickness or injury, and what you need to do when you're off sick.

It applies to all employees [except: list any groups with different terms]. It should be read with our [absence management policy] and [privacy notice].

2. Key terms

• Statutory sick pay (SSP): the minimum sick pay set by law.
• Company sick pay: sick pay [Organisation] pays above SSP under this policy.
• Qualifying days: the days you normally work.
• Rolling 12 months: the 12 months ending on the day before your current absence starts.

3. Statutory sick pay

If you are eligible, you are entitled to SSP from your first full day of sickness absence. SSP is paid for the days you normally work, at the statutory weekly rate or 80% of your normal weekly earnings, whichever is lower, for up to 28 weeks.

Periods of sickness that are 8 weeks or less apart are linked and treated as one period. We pay SSP through payroll in the normal way. The statutory rate is set by the government each April and is published on GOV.UK.

4. Company sick pay: who is eligible

<div class="decision">

Option A: from day one
You are eligible for company sick pay from your first day of employment.

Option B: after a qualifying period
You are eligible for company sick pay once you have completed [3 / 6 / 12] months' continuous service. Until then, you receive SSP if you are eligible for it.

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5. Company sick pay: how much and for how long

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Option A: flat entitlement
You receive up to [X] weeks at full pay followed by up to [Y] weeks at half pay in any rolling 12 months.

Option B: linked to length of service
Your entitlement in any rolling 12 months depends on your length of service:

Option C: discretionary
[Organisation] may pay company sick pay at its discretion, taking into account [length of service, absence record, the reason for absence].

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Full pay means your normal basic pay [plus: list any contractual allowances included].

Company sick pay includes any SSP due to you, so you receive one payment, not both. If company sick pay for a day would be less than the SSP due for that day, you receive SSP.

6. When company sick pay starts

<div class="decision">

Option A: no waiting days
Company sick pay is paid from your first day of absence.

Option B: waiting days
Company sick pay starts on day [X] of each period of absence. For the days before that, you receive SSP if you are eligible.

Note: Since 6 April 2026, SSP is payable from the first full day of sickness for eligible employees. A company waiting period now means SSP only for those days, not no pay.

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7. Reporting sickness

If you can't come to work because of sickness or injury, tell [your line manager or the absence line] by [time] on your first day of absence. [Shift workers: tell us at least X hours before your shift starts.]

Tell us why you're off, when you expect to return, and [any urgent work that needs covering]. Keep in touch with your manager [every X working days, or as agreed] while you're off.

8. Evidence of sickness

For absences of up to 7 calendar days, complete a self-certification form [on your return, or in your HR system].

For absences of more than 7 calendar days in a row, including non-working days, give us a fit note from a doctor or other authorised healthcare professional.

9. Conditions for company sick pay

Company sick pay depends on you:

• reporting your absence as set out above;
• providing self-certification and fit notes when required;
• attending return-to-work meetings [and occupational health appointments];
• not working for anyone else while you're off sick, unless we have agreed it;
• not doing anything that is likely to delay your recovery.

<div class="decision">

Option A: company sick pay withheld
If you don't meet these conditions, [Organisation] may withhold company sick pay for the period concerned. This does not affect your entitlement to SSP, which follows the statutory rules.

Option B: case-by-case
If you don't meet these conditions, your manager will discuss it with you, and [role] will decide whether company sick pay continues. This does not affect your entitlement to SSP.

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10. Extended or repeated absence

<div class="decision">

Option A: review at set points
Where an absence lasts more than [4] weeks, or you have [X] absences in any rolling 12 months, [role] will review the situation with you [and may refer you to occupational health].

Option B: manager discretion
Your manager will review long or repeated absences with [HR] and may refer you to occupational health.

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Any extension of company sick pay beyond your entitlement is discretionary and needs approval from [role].

11. Long-term absence and income protection

<div class="decision">

Option A: income protection provided
[Organisation] provides group income protection insurance. If you are absent for longer than [26] weeks and meet the insurer's conditions, you may receive [X]% of your salary from the insurer until you return [or for up to X years / until State Pension age]. The insurer's deferred period is aligned with the end of company sick pay.

Option B: not provided
Delete this section.

Note: Align the insurer's deferred period with the end of company sick pay. A gap leaves the employee on SSP only. An overlap means paying twice.

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12. Holiday and sickness

Your holiday entitlement continues to build up while you're off sick. You can ask to take paid holiday while you're off sick. We won't require you to.

If you're on long-term sick leave and can't take your holiday, you can carry over up to 4 weeks' unused holiday [or more: specify]. It must be used within 18 months of the date it is carried over.

13. Pension and benefits during sickness

<div class="decision">

Option A: based on normal pay
While you receive company sick pay, pension contributions [and: list benefits] continue as if you were receiving your normal pay.

Option B: based on pay received
While you're off sick, pension contributions are based on the pay you actually receive, including SSP. [List benefits] continue unchanged.

Note: Check this against your pension scheme rules and your insurers' policy terms before you choose.

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14. Returning to work

When you return, your manager will hold a return-to-work conversation with you.

If your fit note says you may be fit for work with some changes, we will discuss what's possible, such as a phased return, adjusted hours or amended duties, and how you'll be paid during it. During a phased return agreed with us, you receive [full pay / pay for the hours worked] for up to [X] weeks.

15. Status of this policy

<div class="decision">

Option A: contractual
This policy forms part of your contract of employment.

Option B: non-contractual
Company sick pay under this policy is not contractual. [Organisation] may change or withdraw it. Your entitlement to SSP is not affected.

Note: New restrictions on dismissing and re-engaging employees to change their terms start in January 2027 (GOV.UK timeline, updated 25 August 2026). Take advice before changing contractual sick pay terms without agreement.

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16. Your health information

Information about your health is special category personal data. We only use it to manage absence and sick pay, and to support you. It is seen only by [roles] and kept for [period], in line with our [privacy notice / retention policy].

17. Review

This policy was last reviewed on [date]. We will review it at least [every year] and whenever the law changes.

Sources

• GOV.UK, Statutory Sick Pay: overview, eligibility and what you'll get (checked 20 September 2026)
• GOV.UK, Plan to Make Work Pay and Employment Rights Act: timeline update (updated 25 August 2026)
• Acas, Statutory sick pay changes 2026 (8 April 2026); Statutory sick pay; Sick pay and holiday pay (updated 30 June 2026)
• CIPD, Health and wellbeing at work 2025 (September 2025; YouGov, 1,101 organisations, March–April 2025)

This template is general information about UK employment law and practice as at the date shown. It is not legal advice. You may adapt and use it within your organisation.

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