Overview

• The reforms will guarantee sick pay of 80% of weekly wages or the standard statutory rate of £118.75, whichever is lower, for low-paid workers.
• Workers earning below £123 per week, previously excluded, will now be eligible for statutory sick pay under the new system.
• Sick pay will begin from the first day of illness, removing the current three-day waiting period for eligibility.
• The changes are part of Labour's Employment Rights Bill, aimed at improving living standards and reducing reliance on welfare benefits.
• Business groups have expressed concerns about potential challenges in managing short-notice absences, while unions are calling for further increases to the sick pay rate.