Recurring sickness and the eight-week trap
Payroll errors seldom arise from one-off absences.
The real challenge begins when an employee returns to work, only to fall ill again shortly afterwards.
If the second absence falls within a specific legal window, employers may unknowingly miscalculate Statutory Sick Pay (SSP).
The issue stems from linked periods of sickness, which can affect entitlement, timing of payments, and compliance with employment law.
The rule – How and when absences connect
Two or more absences are treated as a continuous period for SSP purposes when they occur within eight weeks of one another and each absence meets the threshold of a Period of Incapacity for Work (PIW), defined as lasting four or more consecutive days, including weekends and non-working days.
This legal framework is established under section 152 of the Social Security Contributions and Benefits Act 1992 (the Act).
The payroll impact of linkage
Where absences are linked, the first three unpaid days of illness do not reset for the second absence.
This means that SSP may begin from day one, rather than day four. Getting this wrong could result in both underpayments and employee grievances.
If the gaps between absences exceed eight weeks, or one absence is too short to qualify as a PIW, the link breaks and waiting days apply again.
Illustrative scenario
Take this example:
- An employee is off sick from 4 to 10 February (seven days), and again from 29 March to 2 April (five days).
- Both are longer than four days, and the gap between them is less than eight weeks.
- Result: These are linked. SSP applies from day four of the first absence and day one of the second.
What should payroll teams do now?
To remain compliant and avoid risk:
- Track all absences chronologically – Don’t view each absence in isolation.
- Confirm PIW status – Only absences of four days or more count.
- Ensure software reflects linkage rules – Manual adjustments may be required.
- Monitor the 28-week entitlement limit – All SSP weeks, linked or not, contribute to this cap.
With potential reforms on the horizon, including discussions around abolishing waiting days and removing the Lower Earnings Limit, understanding current SSP mechanics is important.
Uncertainty over entitlement can easily escalate into dispute or mispayment.