26 May 2026
How HR Consultants in Scotland can help you manage the 2026 sick pay changes
Why the updated Statutory Sick Pay rules impact your bottom line
If you’ve not reviewed your sickness absence process since April, your business may already be paying more than it needs to. On 6 April 2026, the rules around Statutory Sick Pay (SSP) changed. These updates shift how absence hits your costs, and for many small firms, the impact is immediate.
Under the new rules, the old Waiting Days have been removed. This means SSP is now payable from the first day an employee is ill. Additionally, more of your workers now qualify because the lower earnings limit has gone. As HR Consultants in Edinburgh and across the UK, we are seeing that for most small businesses, this means more people can claim sick pay and they can claim it much sooner.
What this means for your finances
In the past, employers had a small buffer. Employees usually had to be off for three days before SSP kicked in on the fourth day. Furthermore, some lower-paid staff did not qualify for any payment at all.
That buffer has now gone. Every eligible worker who calls in sick on a Monday morning now triggers a cost from day one. If you employ people on variable or lower-paid contracts, you might now be paying SSP to staff who were previously outside the threshold. While this is not unmanageable, it does change your weekly numbers. We can help you look at these figures to ensure your budget reflects the actual costs of modern employment law. You can also see more details on the ACAS website.
The operational side of sickness absence
Beyond the direct cost, there is an operational side to consider. You may start to see more one or two-day absences showing up in your records. In a small team, even a slight increase puts strain on the people who are in work and on the managers who have to cover gaps at short notice.
Managers need to feel confident having early conversations about attendance. These do not need to be difficult or formal meetings. Instead, they should be calm, consistent check-ins to show that you are paying attention to your team’s wellbeing. Most small businesses do not have this built into how they operate, which can lead to problems when patterns of absence start to develop.
What you should be reviewing now
If your processes were set up under the old rules, they need an update. We recommend focusing on these five areas first:
Payroll compliance
Ensure your payroll system reflects the removal of waiting days and the new earnings rules. From April 2026, SSP is typically calculated at 80% of average weekly earnings or the flat weekly rate (whichever is lower). If this is not updated, you risk underpaying staff or overpaying without realising it.
Updated sickness policies
Check that your written policy matches the current law. If your staff handbook still mentions waiting days or a minimum earnings threshold, it is out of date. It is vital that employees and managers are all working from the same set of rules.
Return-to-work conversations
A simple talk after every absence is one of the most effective tools you have. It does not need to be a long meeting, but it should happen every time someone returns. This helps you understand any underlying issues and shows the team that attendance is managed fairly.
Attendance tracking
You cannot manage what you do not measure. If you are not recording absence consistently, you will not spot trends until they become a larger problem for the business.
Manager capability
Your managers are the first to notice when absence increases. They should know how to handle early conversations without avoiding them or reacting too quickly.
Professional support for your business
The rules around absence are now more complex, but help is available. For more information on statutory rates and best practices, you can visit ACAS or the CIPD.
As experienced HR Consultants in Scotland, we can review your sickness absence policy and tighten up your attendance management. We help you stay on the right side of the law and reduce the risks that come with getting these changes wrong. If you have not looked at your absence processes since the spring, now is the time to act. Creating and updating HR policies is one of our core skills.
Contact Albany HR today for a confidential chat about how we can support your business with these new regulations.
