Changing Statutory Sick Pay Rules Is A Positive Step But It's Costly
This March, the UK Government announced changes to the Employment Rights Bill. If the Bill is approved, once it comes into effect employers would have to pay statutory sick pay (SSP) from day one of an employee's illness, rather than day four, as it was previously.
As the People and Operations Director here at Mrs Buckét, we've always placed people at the heart of our business, many of whom have traditionally worked in physically demanding roles with lower pay and unsociable hours. The face of cleaning is changing and with it, the way we pay and treat our staff. At Mrs Buckét we have led the way and embraced this shift, something we are very proud of.
However, for many businesses, these changes in SSP will be a significant additional cost, on top of recent increases to employer National Insurance contributions and the National Living Wage, which will create further financial strain. Companies aren't reimbursed for sickness costs – they have to swallow them, and for a business like ours, totally dependent on its workforce, that's a difficult balance.
The UK Government is also proposing the removal of the Lower Earnings Limit (LEL) meaning employees earning less than £123 per week would now qualify for sick pay – either £116.75 per week or 80% of their weekly salary, whichever is lower. As a company with a large number of part-time workers, this again is going to have a big effect on us.
Mrs Buckét is all about our people. They are our ambassadors and our flag bearers around Swansea, where we are based, and around South Wales and beyond where we have many clients. We are committed to looking after them and supporting them. But pressure is being felt across every sector at the moment, every penny is being squeezed out of every bid and every tender we go for, and cost pressures are mounting.
We aren't going to change the way we currently treat or pay our staff. But it's important that there is a level of understanding from the Government of the impact on businesses who are having to pay for it all- we are feeling the pressure, and we are trying to navigate these new financial burdens without affecting quality or jobs.
Professionalising and championing the cleaning industry is a key part of our ethos and there are positives to these changes – paying SSP from day one will make our workforce feel more valued, it will help with employee retention and I believe it will reduce the number of days people are off sick. It will have a positive impact on cleaning industry standards and practices.
Still, we must acknowledge that it will also add to pricing pressure, it will add to our administration costs, it will stress our company's cash flow.
Companies should already be looking after, investing and nurturing their staff – they shouldn't be forced into it by a policy change, but because it's the right thing to do. But this commitment also needs to be met with the understanding that small to medium-sized businesses are the lifeblood of the UK economy, and at some point, some may break under the continuing financial pressure of employment.
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