Occupational sick pay

Start with what the employer has promised

Occupational sick pay, also called company or contractual sick pay, comes from the employment terms or workplace policy. There is no standard allowance that every scheme must copy. One employer may offer a period at full pay followed by half pay, while another may provide only the statutory minimum.

Read the whole scheme before deciding what is due. Check any service condition, the amount and length of pay, how earlier absences use the allowance, what evidence is required and when a scheme year resets. The Acas sick pay guidance distinguishes company sick pay from Statutory Sick Pay.

Say how it works with Statutory Sick Pay

The written terms should make clear whether occupational sick pay includes Statutory Sick Pay or is paid on top of it. Without that sentence, a generous-looking promise can produce two different payroll answers.

For example, a policy might say: "We pay normal pay for up to four weeks of sickness absence. This includes any Statutory Sick Pay due, and we will confirm the next pay stage before the four weeks end." Payroll then pays the normal amount rather than adding SSP again.

Explain what happens when full pay reduces or the allowance runs out. Ending occupational sick pay does not by itself end sick leave or employment. Payroll may still need to consider statutory entitlement, and the manager may need a separate support or capability process.

Make discretion visible and consistent

If the policy lets you extend pay, record who made the decision, the reason and the period covered. Treat comparable cases consistently while still considering disability, pregnancy and other individual circumstances.

Avoid informal promises that are broader than the written scheme. A clear confirmation should state the dates, pay level, statutory component and next review point. That gives the employee an answer they can plan around and gives payroll something it can apply without guessing.