The Percentage Threshold Scheme that provided a helping hand to employers with sick staff has now been abolished.
Up until 5 April 2014, employers paying Statutory Sick Pay (“SSP”) were able to reclaim some of this amount as long as it was greater than 13% of their Class 1 NIC liability for the month. This scheme has now been abolished, although employers will still be able to reclaim amounts for earlier years up until 5 April 2016.
The funding previously allocated to the scheme is being moved to the Government’s Health and Work Service which is due to be introduced in late 2014. This is aimed at helping people with a health condition stay in, or return to work through the provision of help and advice lines and Return to Work plans.
The Government is also expected to introduce a £500 tax exemption for employer-funded medical treatment recommended by the Health and Work Service. While this may be of some help, our immediate thought is that it will not replace the cashflow help for smaller employers previously provided by the SSP scheme.
If you have any questions relating to the management of sickness in your organisation, or simply need a sickness absence policy then please don’t hesitate to get in touch. One of our expert employment solicitors will be happy to help.
Tel: 01245 893400
or use the Enquiry Form on our Contact Backhouse page.
The Backhouse Solicitors Employment Law Team