Skip to main content

News story

March 26, 2020

COVID-19 sick pay and support for businesses and employees

We are living in unprecedented times and following on from Boris Johnson’s announcement on 23 March 2020, the UK is ultimately on lockdown. Karen Cole looks at the options for employees and employers alike.

Many industries’ employees, using technology, can work from home. However, this does not apply to all industries and in other cases, employees may be in self-isolation, having displayed the symptoms of COVID-19. What to do? The first port of call for employers and employees is to check the provisions of any employment contract and staff handbook to see if there is a contractual sick pay entitlement and to take matters from there, factoring in the considerations below.

Absent contractual sick pay

The Government have relaxed the rules on statutory sick pay (SSP), which currently stands at £94.25 per week.

In normal circumstances, SSP is only available from day four of sickness. However, the pandemic has resulted in the Government amending legislation so that SSP applies from day one. Furthermore, if an employee remains at home in self-isolation because someone else in their household is displaying COVID-19 symptoms, they too can now claim SSP.

Usually, an employer would require a doctor’s note if an employee is off for more than seven days. Still, as a trip to the doctor counters self-isolation measures, employees can obtain a self-isolation note from the NHS 111 website, which all employers should accept in view of the current situation.

What about the self-employed?

Self-employed people are not entitled to SSP. If they have COVID-19 and/or are self-isolating, the Government have advised that they can claim universal credit or employment support allowance. However, more plans are to be revealed by the Chancellor later today, 26 March.

What about businesses struggling to meet their costs?

Suppose an employer cannot cover their staffing costs due to the impact of COVID-19 under the Coronavirus Job Retention Scheme. In that case, all UK employers can access support to continue paying part of their employees’ salary for employees that would otherwise have been laid off due to the pandemic.

If an employer intends to gain support under the Scheme, they may ask an employee to become a furloughed worker. This would mean the employee would be kept on the payroll rather than laid off. The usual rules of employment law would continue to apply. Any employer looking to utilise furloughed workers must first seek the employee’s agreement and reflect this in their employment terms and conditions.

To qualify under the Scheme, employees should not carry out any work for their employer while furloughed. This will allow the employer to claim up to 80% of their wage with a cap of £2,500 a month. The Scheme has been backdated to 1 March 2020 and will run for three months (to be extended if necessary).

If an employee’s salary is reduced under the Scheme, they may be entitled to support from the welfare system.

For more information on the changes to SSP or any item in this article, call Karen Cole today.

Note: This is not legal advice; it provides information of general interest about current legal issues.

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • Double jeopardy of digital asset inheritance planning amid probate delays
    Hidden digital assets and mounting interest on inheritance tax bills are creating a costly double risk for families dealing with estates following the death of a loved one, as probate delays continue to impact thousands across England and Wales, addi


    Read more
  • Deal or no deal? Keeping negotiations on track
    How to keep commercial deals on track with Heads of Terms, NDAs and exclusivity, improving efficiency, reducing risk and avoiding delays.


    Read more
  • Rights and wrongs: How AI is reshaping Employment Tribunal claims
    AI may be a familiar presence in the workplace, but it’s now starting to appear somewhere less expected: the Employment Tribunal (ET). Grayson Stuckey explores this trend – and what it means for employers.


    Read more
  • Renters’ Rights Act: why process and paperwork matter more than ever for landlords
    The Renters’ Rights Act has now passed into law, marking one of the most significant shifts in the private rented sector in a generation. Most of the new measures will take effect in May 2026, with a national landlord database to follow later in th


    Read more
  • Understanding the Roles of Executors and Trustees
    When making a will, you place significant trust in those appointed to carry out your wishes. Executors and trustees are key roles, often held by the same people, but their responsibilities differ. Understanding these roles and their obligations helps


    Read more

What they say...

  • W Sandover, April 2026
    Boundary Wall dispute “Although (for complex, not relevant) reasons, this matter never reached the point of either negotiations or a court case, Barker Gillette staff provided us with excellent support. I would certainly go back to them in the

  • Client, April 2026
    Excellent suppy “Karen Cole supported me through a difficult time with warmth and professionalism. She made the entire process as smooth as possible, responding quickly to communication and giving clear advice. I would highly recommend Karen to

  • Client, April 2026
    So helpful! “Pippa Marshall listened and offered supportive, practical advice. She was very friendly, easy to talk to and did not pressure me to make any costly decisions during my free 30-minute consultation. I would definitely recommend Pippa

  • Nika Franke-Matthecka, April 2026
    “We had an excellent experience working with Michael Davies and his team on the sale of our property. They were efficient, knowledgeable, and highly diligent throughout the entire process. Communication was always prompt and clear, which made w

  • Paul Woodman, March 2026
    Will writing “Excellent service from start to finish. Efficient and good value. Charlotte was very professional, knowledgeable and understanding.”

Read more
Send this to a friend