The UK plans to change sick pay regulations to provide coverage from the first day of illness, potentially benefiting businesses with £2.4 billion in productivity gains. Currently, statutory sick pay kicks in only after four days off work, leaving many low earners ineligible. Proposed legislation aims to align the UK with other European countries, eliminating the current waiting period. Despite the predicted benefits, business organizations argue that changes could lead to higher absenteeism and impact hiring decisions.
According to analysis commissioned by the UK's Trades Union Congress, changes to sick pay could benefit British businesses by as much as £2.4 billion through productivity gains.
The government’s proposed employment rights bill aims to abolish the current waiting period for statutory sick pay, aligning the UK with systems in Germany and Sweden.
Statutory sick pay currently begins only after the fourth day of illness, leading to many workers, especially those earning below £125 a week, not being entitled.
Business groups express concern that improved sick pay may lead to increased sick leave costs and deter employers from hiring.
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