Q1: Notice Pay during Sickness AbsenceIt would be logical to assume that if an employee resigns or has their employment terminated whilst on long term sick or is subsequently absent during their notice period, that they would be paid at the rate of statutory sick pay (SSP) for this period (except for those who are entitled to contractual sick pay). However, this is not always the case. Employees may be entitled to receive their normal pay during their notice period for all or some of it, despite being sick. Here’s how it works; You need to compare their contractual notice with statutory minimum notice periods. Remember, statutory notice is 1 week for each full year worked, up to a maximum of 12 weeks. If they have no contract of employment, it is deemed as though they had only been given statutory notice in their contract. Contractual notice (employer to employee) is the same as statutory notice:
- Employee Resigns - Full Pay for 1 week of the notice & SSP for the remainder (unless they’ve exhausted SSP entitlement).
- Employer Terminates - Full Pay for the entire duration of the notice period.
- Employee Resigns - SSP (or nothing if they’ve exhausted their entitlement) unless they’re entitled to contractual sick pay.
- Employer Terminates - SSP (or nothing if they’ve exhausted their entitlement) unless they’re entitled to contractual sick pay.