Ruth Medlock

The cost of sick leave may consequently skyrocket for employers, with new laws set to come into force.

“After this year, National Sickie Day will never look the same again – it will have an unprecedented impact on employers as it will hit them in the pocket more than ever”, said Ruth Medlock, an associate and employment lawyer from Wright, Johnston & Mackenzie LLP (WJM).

The Employment Rights Act 2025 changes mean statutory sick pay will be payable from the first day of illness – there will no longer be a three-day waiting period. what’s more, the lower earnings limit (LEL) is also being removed meaning more employees will qualify for statutory sick pay.

While it’s good news for workers, the change will mean increased costs for employers, with some sectors – such as hospitality and retail – likely to be hit harder than others.

Ms Medlock said: “Last year sick days hit their highest level in fifteen years so the impact of employee absences is already providing difficult for employers – and the new reforms will certainly present some new challenges.

“As well as providing earlier access to Statutory Sick Pay, the removal of a lower earnings threshold means many more people will qualify for it – some 1.3million more according to The Department for Work and Pensions. This will cost employers across the UK an estimated £450m extra annually[ii].

“Some industries which rely heavily on part time or casual workers, or smaller businesses with less resources, may feel the biggest impact. As well as more workers being eligible, there will be a new administrative burden so it is essential to plan ahead, know your obligations and be ready for April 6.”

Supporters of the changes welcome the fact workers will get better protection from financial hardship and it is hoped the changes will bring better workplace wellbeing.

Ms Medlock is advising employers to approach the changes with an open mind, and says planning is key, encouraging them to take proactive measures.

She said: “Examine your approach to sickness absence and make sure you have the right processes and manager training in place to best protect yourself and your employees. An effective return-to-work interview practice helps to reduce unplanned absences while providing meaningful opportunities to assess and support employee wellbeing.

“An appropriate level of communication from managers to employees when they are off sick – with a focus on support and wellbeing – is also encouraged to mitigate risk. Prioritising responsible employment practices will both foster a healthy workplace culture and strengthen the long-term well-being of their workforce.”