Retailer reports £500 cost hike in first month of new regime.
Reform of employment law making staff entitled to sick pay from day one is causing concern for more than 80% of equestrian businesses.
The alarm was raised by a survey of British Equestrian Trade Association (BETA) members with four in five saying they were worried about the impact on their businesses
From 6 April, Statutory Sick Pay (SSP) has been payable from the first day of sickness absence. Previously there were three unpaid ‘waiting’ days.
And with the lower earnings threshold abolished, more part-time or lower-paid employees now qualify for SSP.
“In practical terms, this means more employees may become eligible for SSP - and from the first day they’re off sick, which can increase short-term absence costs for businesses,” Shona Hamilton of Lilac HR told ETN
“It’s particularly tough for employers operating with lean teams and seasonal cycles.”
BETA regularly surveys its members, a large proportion of whom retail, manufacture and distribute equestrian products and provide related services.
Revisions to SSP are proving to be a worry for all sectors, says Claire Williams from BETA.
“It has especially created concerns for retailers employing part-time and very part-time staff,” she added.
Retailer reports £500 cost hike
Concern revealed in the recent survey was echoed during last week’s evening meeting of BETA retail members, reports Claire Williams.
Retailers gathered to discuss the impacts of SSP and managing staff absence, and to gain advice from Shona Hamilton of Lilac HR.
Nearly 70% of retailers present employ part-time workers for 1- 2 days a week, with the majority paying SSP rather than offering enhanced sick pay.
The new regulations’ challenges were revealed in the increased payments reported in the first month of the new regime.
One retailer described a bill of more than £500 in the first month in SSP compared with virtually none the month before. This was solely due to short-term sick leave of 1 - 3 days now being eligible for payment compared with these previously being ‘waiting’ days.
This is another additional cost to businesses that simply wasn’t there before.
In her advice to retailers, Shona said data collecting is key to managing absences through sickness. Recording patterns of absence and the reasons given, alongside having a clear policy around what is acceptable in terms of frequency of absence, will assist in managing staff absences.
Having a clear return to work monitoring system through a form to collect relevant information is also key in ensuring data is collected and understood.
Another point was clarified around time off for dependants. This type of absence falls outside the regulations and is not subject to SSP, highlighting the importance of understanding the reasons for absence.
Free webinar
Shona is to run a further free webinar for BETA members focussing on the employer’s responsibility to keep employees safe in the workplace, which now covers both physical safety and mental health.
The date will be announced soon.
