Changes to Statutory Sick Pay

With peak seasons and busy periods, every working day counts, and these changes – from April 2026 – could affect how you manage absences and labour costs. Staff may now be eligible for pay from their very first day off sick. Laura explains how preparing in advance can help your business stay efficient, compliant, and ready for the new rules.

What’s changing

From April 2026, the key changes to Statutory Sick Pay (SSP) are:

• The three-day waiting period is removed, so staff can claim SSP from day one of illness.
• More workers will be eligible, including part-time and seasonal staff earning under £123 a week.
• Eligible employees will receive either 80% of their average weekly earnings or the standard SSP rate of £118.75 per week, whichever is the lower amount.

These reforms are designed to give employees better protection, but they also mean employers will need to plan for potentially higher short-term absence costs and ensure payroll and policies are updated to reflect the new rules.

What this means for your business

For most farms and rural businesses, the impact will be similar to other sectors. Employers should expect higher costs because sick pay starts earlier and covers more staff. Short-term absences may increase, particularly among seasonal workers who were previously ineligible. Employers will also need to ensure that payroll, contracts, and absence policies are updated to reflect the new rules.

Farm businesses with employees entitled to Agricultural Sick Pay (ASP) should note that ASP guarantees workers at least the Agricultural Minimum Wage while off sick, which includes any SSP. If ASP applies, both sets of rules must be followed.

Practical Examples

• Farm example: A seasonal harvest team may now have part-time or seasonal workers eligible for SSP from day one. This could increase labour costs during busy periods if short-term absences rise.
• Rural business example: A local B&B employing weekend staff may see more short absences, as part-time workers can claim SSP immediately. Keeping accurate absence records and updating payroll processes will help manage this.

Steps employers should take

• Review and update contracts and policies to reflect the new SSP rules.
• Keep accurate absence records to manage costs and identify patterns.
• Ensure supervisors and managers are prepared to handle sickness absence fairly and consistently.
• Budget for the changes – particularly if your business relies on seasonal, part-time, or casual staff.

Top Tips for farmers and rural businesses

• Plan ahead for seasonal staff: Know how many workers might be eligible for SSP and factor it into your labour costs.
• Update your payroll and policies: Make sure all contracts, handbooks, and absence procedures reflect the new rules.
• Train managers and supervisors: Give them the tools and confidence to manage absences fairly and consistently.
• Monitor absence trends: Accurate records help you spot patterns early and manage costs effectively.

These reforms are designed to support workers, but they will add costs and responsibilities for employers. Preparing now will help your farm or rural business adapt smoothly when the rules come in from April 2026.

Further help & advice

The CXCS HR team is here to help farms and rural businesses navigate the upcoming Statutory Sick Pay changes. We understand the challenges of part-time and seasonal staffing and can guide you on policies, payroll, and absence management to keep your business running smoothly.

Contact us on 01981 590514 to ensure your business is prepared well before the changes take effect in April 2026.