Are Umbrella Company employees entitled to sick pay?

When contracting under an Umbrella Company you’re entitled to the same employment rights as any other permanent employee, but what about sickness?

In this blog we explore your rights, and how you go about claiming sickness pay.

Sick pay entitlement when using an Umbrella Company

Currently you’re entitled to the same levels of sick pay as the current Statutory Sick Pay (SSP) of £99.35 per week, for 28 weeks, and your Umbrella Company pays you directly for as long as you are poorly.

If you are sick due to corona virus the rules surrounding sick pay remain the same.

Are there SSP differences for umbrella employees?

No, SSP is exactly the same for all employees, regardless of whether you’re in permanent or umbrella employment. However you must meet certain criteria in order to qualify for SSP:

• You must be ill for four consecutive days (including weekends)
• You must have already completed some of your contract’s work

Eligibility and deadlines

In order to qualify for SSP you must:

• Inform your Umbrella Company within seven days from becoming ill. If you’re unable to do so, you could lose some of your SSP
• If you contract covid-19 and are ill for longer than seven days, you must obtain an ‘isolation note’, a notification from the NHS or public health authorities if you’ve been told to self isolate, or a ‘fit note’ (or ‘sick note’) if you’re unwell for another reason
• Provide a letter detailing any procedures you may need to have done, and if you’ve been advised to self-isolate before going into hospital for surgery

Covid sick pay

The rules surrounding Statutory Sick Pay (SSP) for self-isolation when testing positive for Covid changed on March 24^th 2022:

• You’re no longer entitled to SSP if you’re self isolating, unless you’re unwell and are off work sick
• SSP is no longer paid from the first day of absence from work

When does SSP not apply?

In order to qualify for SSP a contractor must earn a weekly average of £120 before tax and National Insurance. This calculation is based on an eight-week period, which ends when the last date the contractor was paid prior to the illness.

If you’ve just started a contract and have yet to earn 8 weeks’ worth of pay, you’re still eligible for SSP so long as the other criteria are met.

There are some exceptions to SSP though. If you’ve already received the full 28 weeks SSP at the maximum amount then you cannot claim it again. If you’re receiving statutory maternity pay you’re also not eligible for SSP.

How can you claim SSP?

As soon as you fall ill be sure to inform your Umbrella Company, who will be able to talk you through the process, what information they need from you, and what you expect from them. It might be worth asking your Umbrella what their processes are before you become ill, so you know what they need from you, and to save yourself the hassle when you’re not feeling 100%.

SG Umbrella, your trusted Umbrella Company

If you’re contracting and on the lookout for an Umbrella Company, look no further! SG Umbrella is run by experienced contractor accountants, is designed for contractors and backed by FCSA, the UK’s leading contractor compliance body. We can advise you on the set-up, help you make the most tax efficient decisions, plus there are no additional charges for paying into your chosen pension provider. If this sounds like the type of advice and support you need, get in touch today.