UK Sick Leave Case Study
Sickness is a mandatory leave which each employer should provide his employees and should abide by the rules governing it’s entitlements and eligibility as stated by the HMRC (Her Majesty’s Revenue and Customs).
Problem Statement :
Sick pay comprises of two parts namely statutory pay and occupational pay. Statutory pay is a mandatory payment which has to be paid by the employer whereas occupational pay is optional and is depends on the Employer’s wish. The challenge here is to pay statutory pay and occupational pay together according to the eligibility of the employee. The complexity increases many folds when the employee has many jobs.
Statutory sick pay and eligibility rules according to UK government website (may subject to change):
You can get £92.05 per week Statutory Sick Pay (SSP) if you’re too ill to work. It’s paid by your employer for up to 28 weeks.
To qualify for Statutory Sick Pay (SSP) you must:
- be classed as an employee and have done some work for your employer
- have been ill for at least 4 days in a row (including non-working days)
- earn an average of at least £116 per week
- tell your employer you’re sick before their deadline – or within 7 days if they do not have one
High Level Solution :
Step 1 : Create an Absence type for Sickness which will be visible to all the employees when applying for leave and define appropriate eligibility which defines the group of people to whom the leave type for sickness will be visible to the employees.
Step 2 : Create a plan for the statutory sickness and attach the formula from PayrollCloud Corp defining the entitlements for the Statutory sick pay and the entitlement eligibility. The Statutory sickness entitlement is stated in the problem statement above.
Step 3 : Create a plan for the occupational sickness and attach the formula from PayrollCloud Corp defining the entitlements for the Occupational sick pay, entitlement eligibility and salary offset.