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Absence managementStatutory sick pay from day one: what small businesses need to know

Since 6 April 2026, statutory sick pay has started on the first day someone is off sick rather than the fourth, and people on lower earnings now qualify too. If your contracts or payroll haven't caught up yet, it's a quick fix, but one worth doing now.

What's changed, in short

The three unpaid "waiting days" have gone, so a single day off sick is now paid. The lower earnings limit has also gone, which means part time and lower paid staff who never used to get statutory sick pay now do. For them, it's paid at the standard weekly rate or 80% of their average weekly earnings, whichever is lower.

It's also worth knowing that the new Fair Work Agency can now look into unpaid sick pay itself, without an employee having to bring a claim, so mistakes are more likely to come to light than they used to be.

Three things to check this week

  • Your contracts and handbook. Look for any mention of waiting days, the first three days being unpaid, or an earnings threshold. If it's there, it's out of date and could cause a disagreement the next time someone is off.
  • Your payroll. Ask your payroll provider, or check your software, to confirm it's paying from day one and applying the 80% rule for lower earners, rather than assuming it's been updated.
  • How people report sickness. Make sure everyone knows who to call, by what time, and when you'll need a fit note, because clear and consistent reporting saves a lot of confusion later.

Look at the person, not just the pay

You may notice more short absences now that the first days are paid, and that's normal. What matters is how you respond. A short, friendly return to work chat, asking how they are and whether anything at work is making things harder, is the simplest tool you have. It shows you care, and it often brings out the real issue, whether that's workload, something at home or a difficult relationship in the team.

If you do see a pattern, deal with it calmly and consistently and treat everyone the same way. That's fairer for your team and much easier to stand behind if it's ever questioned.

We can update your contracts and absence policy, set up absence tracking in the right HR system for you, or train your managers through our absence management course. If that sounds useful, book your free 30 minute HR chat.

This article is general guidance rather than legal advice, and reflects the law at the date of publication.

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