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GILLIAN MCATEER

Gillian McAteer is director of employment law at Citation, which provides health and safety and employment law services for UK SMEs.

HOW CAN I MANAGE SICK PAY IN MY BUSINESS?

In the aesthetics industry, understanding sick pay entitlements can feel like a minefield, mainly when your team includes a mix of part-time employees, full-time staff and freelancers.

Occupational sick pay (company sick pay) isn’t a legal requirement, but many clinics offer it as part of their employment package to support staff and boost retention. If you provide it, you’re free to set the terms, as long as they’re clear in contracts or employee handbooks and applied fairly across your team. Importantly, your rules must not be discriminatory – for example, treating part-time employees or employees with long-term health conditions less favourably.

However, statutory sick pay (SSP) is a legal entitlement that eligible employees must receive. At present:

• Employees must earn at least the Lower Earnings Limit (currently £125 per week)

• SSP is only payable from the fourth consecutive day of sickness

Statutory sick pay is changing with the new Employment

Rights Bill proposing that from April 6, 2026:

• SSP will be payable from day one of absence (instead of day four)

• Removal of the earnings threshold meaning more employees will qualify. For clinic owners, you’ll likely see more day-one sickness absences being claimed, and a larger portion of your team becoming eligible.

It will be important to get these changes right as the creation of the new Fair Work Agency (also part of the Bill) aims to enforce SSP entitlement, in addition to holiday pay and National Minimum Wage entitlement.

HOW TO HANDLE SICKNESS ABSENCE FAIRLY AND LEGALLY

For clinics, sickness absence doesn’t just mean a gap in the rota, it disrupts patient bookings, adds pressure to remaining staff and can hit revenue hard.

Covid-19 has also changed the landscape, with more staff managing long-term health conditions – yet many small businesses still lack formal absence management systems, leaving them vulnerable. To stay ahead of these changes and protect your business:

• Review absence levels regularly – are specific individuals taking repeated short-term absences? Spotting trends early makes it easier to act.

• Use self-certificates and return-to-work interviews – always ask staff to complete a self-certification form for sickness for up to seven days and hold a quick return-to-work meeting on their first day back. These chats don’t need to be formal but should be documented. They help you understand if further support is required or if patterns of absence are emerging.

• Be consistent with disciplinary action – if an employee’s absences are excessive without an underlying explanation and you’ve already provided support, you may need to begin formal disciplinary proceedings. Ensure your absence policy is applied consistently but if there are long-term underlying health conditions which are causing the level of absence, you will be under a duty to make reasonable adjustments to support your employee and a failure to do so would be viewed as disability discrimination.

• Check employment status – make sure your freelancers are genuinely self-employed. Misclassifying them could result in unexpected obligations for SSP, holiday pay and more.

This article appears in January 2026

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This article appears in...
January 2026
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