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SSP changes could lead to cashflow problems

04/05/206

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Business groups have issued a stark warning that proposals to change Statutory Sick Pay (SSP) legislation will increase the level of sickness absence and raise costs for small businesses.

At the moment, businesses are not required to pay SSP until the fourth consecutive day of an employee’s absence but under proposals in the Government’s Welfare Reform Green Paper, they would have to pay SSP from the first day an employee is absent.

David Frost, Director General at the British Chambers of Commerce, explained: “Giving all employees the right to SSP from day one would create a perverse incentive for individuals to take occasional sick days, which cause serious disruption for small firms.”

Nick Goulding, Chief Executive at the Forum of Private Business’ added to the criticism, stating: “The plans would be defeating the Government’s object of simplifying absence management for businesses.

“This change would not only see an increase in costs, but could give the green light for more unauthorised absences by employees.

"At a time when smaller businesses are already overburdened by regulations and uncertain of their rights, introducing another change merely adds to the confusion.”

 

Source: RedAlert

 

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