SSP Changes & Holiday Pay Enforcement: What Businesses Need to Get Right Now

Holiday and SSP pay

From April, Statutory Sick Pay (SSP) will be payable from day one for all employees regardless of earnings. At the same time, the introduction of the Fair Work Agency (FWA) brings increased scrutiny around holiday pay and record keeping.

For small businesses, this means greater cost exposure, higher compliance expectations, and less room for error.

Here’s what’s changing and what to review now.

1. SSP Changes – What’s New

- SSP will be paid from day one of sickness absence

- Applies to all employees, including lower-paid and part-time workers

What this means:

Your wage costs may increase, and absence management becomes more critical.

2. Why Absence Management Matters More Than Ever

- Clear reporting process

- Return-to-work conversations

- Track absence patterns

- Use absence triggers (e.g. 3 occasions / 10 days)

3. Practical Steps to Take

- Review sickness reporting process

- Train managers on return-to-work conversations

- Monitor absence trends

- Update your absence policy

4. Holiday Pay & Record Keeping

- Keep records for 6 years

- Must show entitlement, leave taken, and payments

- FWA can investigate without complaints

- Penalties up to 200% of underpayments

5. Where Businesses Get It Wrong

- Incorrect part-time calculations

- Ignoring irregular hours

- Excluding overtime pay from holiday payments

- Poor record keeping

6. What You Should Do Now

- Review calculations

- Check records

- Ensure employees take entitlement

- Manage carry-over correctly

Need a sense check?

If you’re unsure whether your approach is compliant, it’s worth reviewing now.

BDHR Consultancy supports small businesses with practical, no-nonsense HR support.