Phased Returns to Work and Statutory Sick Pay (SSP) in the UK: Arrangements That Don’t Satisfy a Period of Incapacity for Work (PIW)
Phased returns to work are a common approach used by employers in the UK to support employees who are recovering from illness or injury. These arrangements allow employees to gradually increase their working hours or duties until they are ready to return to their full role. While phased returns are beneficial for both employees and employers, they can raise questions regarding entitlement to Statutory Sick Pay (SSP), particularly when it comes to defining what constitutes a Period of Incapacity for Work (PIW).
Understanding Period of Incapacity for Work (PIW)
A PIW is a fundamental concept for SSP eligibility. To qualify for SSP, an employee must be off work for at least four consecutive days due to illness which constitutes a PIW. These days do not need to be working days, and they can include weekends and public holidays. If there are fewer than four consecutive sick days, the absence does not count as a PIW, and therefore, the employee will not be eligible for SSP.
Phased Returns to Work: How They Impact SSP
Phased returns to work are typically agreed upon between the employer, employee, and often medical professionals. These arrangements might include reduced hours, lighter duties, or flexible working patterns. However, there are situations where phased returns do not meet the criteria for a PIW, meaning the employee cannot receive SSP during these periods.
Common Phased Return Arrangements That Do Not Satisfy a PIW
- Short Absences Within the Phased Return: If an employee attends work for part of the week but takes occasional sick days that are not consecutive, these individual absences do not form a PIW. For instance, if an employee works Monday, is off sick Tuesday, works Wednesday, and is off again on Thursday, the days off are not consecutive and do not satisfy the four-day requirement for a PIW.
- Alternating Work Patterns: When an employee is alternating between workdays and rest days as part of their phased return, it can be challenging to meet the PIW criteria. For example, an employee working two days, resting one, and then working another two days would not qualify for SSP because the sick days are not consecutive.
- Partial Working Days: If an employee works partial days, even if reduced hours are due to illness, these do not count towards a PIW. SSP rules specify that the employee must be completely off work for four consecutive days to start a PIW. Partial attendance therefore disqualifies the absence from being classified as a PIW.
- Non-Consecutive Sick Leave: An employee on a phased return may take non-consecutive sick days which do not fulfil the consecutive day requirement. For instance, working a few hours on multiple days interspersed with rest days does not satisfy the PIW requirement.
- Agreed Rest Days Not Linked to Illness: If rest days are agreed upon as part of a phased return but are not directly linked to the employee's incapacity, these do not count towards a PIW. For example, if rest days are structured to prevent overworking rather than because of a continuous illness, they will not qualify as part of a PIW.
Avoiding SSP Issues During Phased Returns
To avoid misunderstandings about SSP during phased returns, employers should:
- Clearly Define Sick Days: Ensure that any time classified as a sick day meets the criteria for a PIW. This means the employee should not work at all on those days to maintain eligibility for SSP.
- Document Agreements: Keep clear records of phased return arrangements, including which days are workdays and which are sick days, to provide transparency.
- Use Occupational Health Advice: Seek advice from occupational health professionals to structure phased returns in a way that supports recovery and complies with SSP rules.
- Communicate with Employees: Inform employees about how phased returns impact SSP eligibility so they are aware of the implications on their pay.
Conclusion
Phased returns to work are a valuable tool in supporting employees back to full health, but they can complicate SSP eligibility. Understanding the rules around a PIW and ensuring phased returns are structured correctly can help employers provide the right support while maintaining compliance with SSP regulations. Employers should be proactive in managing phased returns to ensure employees are not left without the financial support they need during their recovery
