DWP bringing in new sick pay rules affecting 1.3 million workers

A major change to sick pay rules could be introduced from the new Department for Work and Pensions (DWP). The Employment Rights Bill is being rolled out from the Labour Party government who says it will tackle low pay and poor working conditions.

It has passed its second reading by 386 votes to 105 after being debated by MPs on Monday. Under the plans, the threshold preventing people earning less than £123-a-week from qualifying for SSP would be scrapped from the DWP.

It would also seek workers given the right to the benefit starting from the first day of illness, ending the current three-day waiting period. Workers could receive between 60 and 80 per cent of their earnings, with the current cap of £116.75-a-week maintained.

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If the percentage is 80 per cent, an employee earning £100 per week would receive £80 per week in SSP, while an employee earning £150 would be paid the flat rate of £116.75, according to the consultation published on the government's website.

Work and Pensions Secretary Liz Kendall told the Mirror newspaper: “Sick employees face an agonising decision: stay home and lose a day’s pay, or soldier on and risk worsening their condition just so they can put food on the table and make ends meet. It’s a choice people shouldn’t have to make."

She added: "It is time to end the agonising decisions faced by thousands of people each and every day. It is time to fix our broken labour market and the poor pay, poor working conditions and poor job security that have been holding our economy back.”

The legislation, which ministers say will benefit 10 million people, would guarantee new rights for workers from day one of their employment including: parental and bereavement leave, sick pay, and protection from unfair dismissal, BBC News reports.