The recently announced Employment Rights Bill is set to bring substantial changes to the rights of workers in the UK, particularly in terms of sick pay and family leave. This overhaul is being described as the “biggest upgrade to rights at work for a generation” by the government, and it has the potential to transform the workplace in significant ways. For HR professionals and business leaders, it is crucial to understand how these changes could influence not only employee productivity but also their mental health and wellbeing.
Day one sick pay
The new bill proposes a major change to statutory sick pay (SSP), making it available from the first day of illness rather than the fourth. Additionally, the current lower earnings limit, which prevents workers earning less than £123 per week from claiming SSP, will be removed. This adjustment ensures that employees do not face financial difficulties from the outset of their illness, allowing them to focus on recovery instead of stressing over lost income.
Sick pay from day one is expected to have a positive impact on employee mental health. Many workers have previously felt compelled to work through illness, fearing that the financial repercussions of taking time off could be more severe than the consequences of remaining at work while unwell. This fear often leads to presenteeism, a situation where employees come to work while ill, reducing their productivity and risking further health complications. By eliminating these financial concerns, employees can take the time they need to recover fully, resulting in a healthier and more engaged workforce.
Jasmin Dhillon, Employment Partner at Spencer West LLP, said,
The Bill’s proposal to expand eligibility for sick pay (by making it payable on the first day of illness and scrapping the minimum earnings requirement) is a welcome development for workers, ensuring that being unwell doesn’t equate to financial disaster.
Jasmin Dhillon, Employment Partner at Spencer West LLP
Family leave rights
The expansion of family leave rights is another critical aspect of the new Employment Rights Bill that stands to benefit employee mental health. Under the new proposals, paternity leave, unpaid parental leave, and unpaid bereavement leave will become “day one” rights for workers, removing the current qualifying period. This means that employees will be eligible for these benefits as soon as they begin employment, rather than having to wait until they have accrued six months or more of service.
This enhancement has the potential to significantly reduce stress for working parents, who often struggle to balance their responsibilities at home and at work. By providing leave rights from day one, employees can better navigate family-related challenges, such as taking care of a newborn or managing the aftermath of a family loss, without fear of financial repercussions or job insecurity. This support can alleviate the pressures that often accompany major life events, allowing employees to return to work more focused and less overwhelmed.
Brigitte Weaver, Employment Lawyer at Katten Muchin Rosenman LLP, highlighted the introduction of enhanced family leave rights as a major improvement:
Introducing enhanced family leave rights including rights to paternity, unpaid parental and bereavement leave from day one of employment… will likely improve work-life balance, ensuring that employees can feel secure when facing critical life events.
Brigitte Weaver, Employment Lawyer at Katten Muchin Rosenman LLP
An opportunity for HR to lead
HR professionals and business leaders are uniquely positioned to leverage these changes to create a more resilient and healthier workforce. Implementing supportive policies around sick pay and family leave rights is a step towards addressing the causes of stress in the workplace. Employers can take proactive measures to communicate these benefits effectively, ensuring that employees are well-informed and feel comfortable accessing these rights when needed.
Joanne is the editor for Workplace Wellbeing Professional and has a keen interest in promoting the safety and wellbeing of the global workforce. After earning a bachelor's degree in English literature and media studies, she taught English in China and Vietnam for two years. Before joining Work Well Pro, Joanne worked as a marketing coordinator for luxury property, where her responsibilities included blog writing, photography, and video creation.
