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As part of tabled amendments to the Employment Rights Bill, the Government will make Statutory Sick Pay a legal right for all workers for the very first time. Up to 1.3 million employees on low wages who find themselves unable to work due to sickness will either receive 80 per cent of their average weekly earnings or the current rate of Statutory Sick Pay - currently £116.75 per week - whichever is lower. Employees will also have a right to Statutory Sick Pay from the very first day of sickness absence.
"No one should ever have to choose between their health and earning a living, which is why we are making this landmark change," said Work and Pensions Secretary Liz Kendall.
The British Chambers of Commerce called the 80% rate a "fair compromise” but warned allowing sick pay from day one could lead to higher staff absenteeism that smaller firms could struggle to cope with.
In total responses to five consultations will be published: Application of zero hours contracts measures to agency workers, Strengthening remedies against abuse of rules on collective redundancy, Creating a Modern Framework for Industrial Relations, Strengthening Statutory Sick Pay and Tackling non-compliance in the umbrella company market.