A Guide to Sick Pay for Umbrella Employees

01 Jul, 2020

Working with a bigger firm like DNS Umbrella would be a great opportunity that brings up a lot of benefits along with it. Umbrella is currently serving as one of the most popular companies in the UK that have brought up the opportunity of offsetting some business expenses against the different taxes. Whether you are having a smaller or a bigger organisation, you can easily delegate all of the administration tasks to the Umbrella Company and have a smooth journey throughout. Still, of having such huge popularity, there are certain things that the majority of the people are unaware of such as how does it works and what are the benefits it offers to its associates.

A Guide to Sick Pay for Umbrella Employees

Umbrella Company for contractors is a third party limited company that acts as a contractor’s employer. If you are willing to know in detail about the different benefits especially the sick pay for the Umbrella employees, this guide is going to be of utmost help for you.

SSP (Statutory Sick Pay)

Eligibility Criteria

If you are working as an employee under the label of an Umbrella Company you need to be well aware about the criteria for Statutory Sick Pay and it is important:

  • Your employee to have an employment contract as a proof.
  • Your Employee must have spent some time while working under your contract with the Umbrella Company.
  • Your employee is been sick consistently for 4 or more days in a row.
  • Your employee must have earned an average of about £120 per week.
  • The notice being presented by you needed to be error-free and correct.
  • If your employee is being ill for more than 7 days you need to provide the solid proof of your illness.

While applying for SSP just make sure that you are being sick for at least 4 days in a row. A single day of sickness for an employee is never being counted in SSP.

An employee being paid less than for 8 weeks is also eligible for SSP. If someone is finding it hard, they can easily make use of the sick pay calculator for calculating the amount which you need to pay for your employees during SSP. One thing that we would like to inform you here at this moment is that an employee can make use of annual leave during this time even for enjoying the uninterrupted benefits of their employment status.

A person working in more than one job is also applicable for qualifying the sick pay for one job.

Coronavirus and SSP

The outbreak of Covid-19 has added up some more points in the rules and regulations of SSP. If you are a contractor make sure that Covid-19 patients who are applying for SSP are well meeting the given criteria:

  • Employees who are having someone corona positive in their family must have self-isolating themselves on or after March 13, 2020.
  • Employees who are shielding themselves since April 16, 2020.
  • Employees who have been reported to be get connected with someone with coronavirus and have started self-isolating themselves on or after May 28, 2020.

Employees who are being considered on furlough as per Coronavirus Job Retention Scheme are not being able to apply for SSP for coronavirus.

Who are not eligible for SSP?

Being a contractor, you need to know that the employees of Umbrella payroll company, will not be able to appear for SSP only if:

  • You already have received the maximum limit of SSP and that is 28 weeks annually.
  • You are already getting Statutory Maternity Pay or allowance.
  • You are currently on off-work state due to some pregnancy-related issues.
  • In case if you are working outside the EU and are not a part of National Insurance Contribution schemes.
  • You are on strike or in custody during your period of illness.

Also See: Umbrella vs Pay As You Earn (PAYE), what’s the difference?

What is Coronavirus Job Retention Scheme?

The Coronavirus Job Retention Scheme is a temporary measure that is being taken into account for helping employers to keep employees on during this difficult time of the pandemic. The scheme already has helped millions of employees over there all around the nation and is currently serving as support for millions of others also. The government is supposed to pay out about 80% of the reimbursement under this scheme and that is quite enough for providing help for the employees during this crucial time of the pandemic.

Conclusion

Appearing for SSP (Statutory Sick Pay) is an employee’s right. If you are feeling sick consistently for more than 4 days in a row, make sure to appear for SSP to get the advantage of it. Don’t need to felt shy if you are having some queries. This guide is specially designed to help you with your very first SSP process.This guide is going to be quite informative for all of the employees of the Umbrella company who doesn’t know how to access it, what is coronavirus job retention scheme, and much more.

Also See: Understanding IR35 or off-payroll Working Rules