The new sick pay changes announced by the government

Labour has set out proposed new rights for UK workers as part of its Employment Rights Bill.

New laws surrounding sick pay are set to be introduced. (Getty Images)
New laws surrounding sick pay are set to be introduced. (Getty Images)

More than seven million workers in the UK will be granted sick pay from their first day in a new job under new government proposals.

The government unveiled its Employment Rights Bill on Thursday, introducing legislation in parliament to upgrade workers’ rights across the UK.

One of the key changes in the bill is a universal entitlement to sick pay for all staff from the first day they are unwell. Statutory sick pay will be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.

The changes will bestow new rights on about 7.4m workers in the UK who are reliant on sick pay.

It will also establish a Fair Work Agency that will bring together different government enforcement bodies to enforce and strengthen statutory sick pay.

The new legislation was trailed by the new government in the King's Speech back in July, and workers will also see more rights around maternity pay and unfair dismissal.

Workers can get Statutory Sick Pay (SSP) from their employer if they are too ill to work.

It is paid in the same way as the worker's usual wages, usually weekly or monthly.

Currently, statutory sick pay is £116.75 per week and it can be paid for up to 28 weeks.

Affected workers cannot receive lower than the statutory amount and may be entitled to more than that if their company has a sick-pay scheme.

To qualify for sick pay the person must be classed as an employee, earn an average of at least £123 a week, and have been ill for more than three days in a row, including non-working days.

Staff will be paid SSP for all of the days they are off sick that they would normally have worked, apart from the first three days. These three days are known as "waiting days".

Workers must tell their employer they are unable to work before a set deadline - or within seven days if a deadline has not been set.

If a worker has regular periods of sickness, these may be "linked" if they last more than three days in a row and are eight weeks or less apart.

These late nights are not working for me
The government has proposed changes to statutory sick pay. (Getty Images)

SSP is no longer paid if a person has a continuous series of linked periods of sickness that lasts more than three years.

If a worker thinks their employer has not paid them statutory sick pay when they are eligible - or if they think they have been paid the wrong amount of sick pay, and the issue has not been resolved - then they can contact the HM Revenue and Customs statutory payment dispute team.

Under the government's proposals in the Employment Rights Bill, workers will no longer have to wait until the fourth day of illness before getting sick pay.

Instead, all staff will be entitled to SSP from the first day of their illness.

However, sick pay for those who earn less than £123 a week is likely to be lower than the standard rate of £116.75 a week.

Deputy prime minister Angela Rayner said: "The UK’s out-of-date employment laws are holding our country back and failing business and workers alike.

"Our plans to make work pay will deliver security in work as the foundation for boosting productivity and growing our economy to make working people better off and realise our potential.

The TUC praised the commitment to expanding sick pay in the bill.

General secretary Paul Nowak said that the approach to sick pay "highlights Labour's commitment to upgrade rights and protections for millions."

Cancer charities like Young Lives vs Cancer have praised the news, which can benefit employees fighting the disease.

Sonia Malik, the associate policy director from the charity, said that the measure was "good news for young cancer patients needing quick support." But she warned that without a rate increase, "it still falls short. We can do better," she added.

As well as sick pay rights, the new bill will also introduce a number of other new entitlements for workers.

These include new maternity leave rights, whereby all women employees will be able to give notice for maternity leave on their first day of the job without the risk of dismissal.

Pregnant woman working from home office
The government is promising more rights surrounding maternity leave. (Getty Images)

At present, all new mothers are entitled to 52 weeks of leave, but they must have worked for a company for 26 weeks and earn more than £123 a week to qualify for maternity pay, which is currently 90% of their salary for six weeks and then £184 a week for 33 weeks.

Zero-hours contracts will be banned if deemed "exploitative" and employees would have the right to a contract that reflects the hours they regularly work.

However, the so-called "right to switch off" while not at work will not be included in the bill, meaning companies will not be forced to stipulate when employers are not permitted to contact staff.

Instead, this will be introduced subject to consultations.

More broadly, businesses and unions have cautiously welcomed the bill.

While some unions have criticised the government for not fully outlawing zero-hours contracts, some businesses have warned that the measures need to offer reassurance to businesses worried about the costs.

Jane Gratton, deputy director of public policy at the British Chambers of Commerce, told Yahoo News UK: “Employers and SMEs (Small and Medium-sized Enterprises) in particular, need reassurance that these proposals will be affordable and proportionate. They are nervous about additional costs and restrictions, including how these new laws will impact their business operations.

“Many businesses have limited access to HR resources and want to know what support the government will put in place to help them prepare and adjust to the changes."