Coronavirus: reclaiming Statutory Sick Pay under the Rebate Scheme
17th April 2020
As the law on Statutory Sick Pay (SSP) continues to evolve in response to the Coronavirus outbreak, the Government has enacted the “Coronavirus Statutory Sick Pay Rebate Scheme” (the Scheme), under which eligible employers will be able to reclaim SSP paid to employees due to coronavirus. Government guidance on the Scheme can be found here.
The Scheme will allow eligible employers to reclaim SSP:
- Which has been paid to current or former employees
- For periods of sickness starting on or after 13 March 2020
- For employees who had coronavirus or could not work because they were self-isolating (see here for more information about eligibility for SSP)
- For up to two weeks from the first day of sickness.
However, the Scheme will not cover more than the current SSP rate, regardless of whether employers may have paid more to their employees.
To be eligible to reclaim SSP under the Scheme, employers need to have had a PAYE payroll scheme that was created or began prior to 28 February 2020 and fewer than 250 employees on 28 February 2020. Employees on various contracts will be covered, including those on agency and zero-hour contracts. Connected companies and charities with fewer than 250 PAYE employees on or before 28 February 2020 are also eligible.
To claim under the Scheme, employers should keep records of all SSP they plan to reclaim, with relevant details including reasons and periods of non-working, the details of any SSP qualifying days, and NI numbers of all employees who have been paid SSP. Employers are reminded to keep records of these claims for at least three years after claiming.
The Government has not yet released the online claim service for submitting claims, but will update its guidance here to announce when it is open.
This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.