Even if you have a Key Man or Income Protection policy, you’re still liable for at least 4 weeks, or however long your deferment period may be.
Sick Pay will reimburse up to 80% of the cost for every employee. There are several other reasons why this little policy could be a saviour for your business:
- It’s not based on a person’s salary so it’s cheap to take out
- It can cover all members of staff for up to £6000 each every month
- It will also pay your National Insurance contribution for you
Long-term income protection policies can be expensive so many companies choose a long deferment period to keep premiums down. With payment periods ranging from 12 – 52 weeks, this policy can bridge the gap between Sick Pay starting and the long-term plan paying out, saving the unpredictable costs of unplanned absences.
What’s more, you’ll gain HR support with the Employer Assistance Programme which comes with the policy. Get help with managing absences, and learn how to ensure staff return to work as soon as possible – reducing costs and administration.
Let us explain exactly how Sick Pay can benefit you – give us a call and we’ll provide the figures to illustrate how this policy can help your business.
No. The government always used to reimburse Statutory Sick Pay but this was scrapped in April 2014 leaving no safety net for businesses which are now forced to absorb the costs. Sickness absence isn’t something you can do much to prevent but this policy does now offer you insurance protection against these events.
Sick Pay cover applies to any member of staff who qualifies in the statutory way for Sick Pay. The policy will pay the cost of Sick Pay up to £6000 a month for any one person.
The brilliant thing about this policy is that you aren’t penalised for the size of salaries covered. The only limit is the individual pay-out limit of £6000 – this limit is per person, per month.
Absences cause problems for every business, and costs are unpredictable. This cover is designed to dovetail neatly into your longer term cover, by taking the financial and administrative pressure off your business in those early weeks of absence – typically, the period before your main cover kicks in. The cost of this Sick Pay cover shouldn’t exceed what you already pay out in cover for absences.
Handling sick leave can be very tricky from an HR perspective. The EAP offered free of charge with these policies gives you access to the experts who can help you get the paperwork in order and ensure you do everything correctly. With an HR and manager absence support helpline, free legal advice and online or phone support for managers, your team will have the help it needs to cope with an unexpected leave of absence. Seminars are provided to train your HR team on sickness absence management and stress awareness.
Meanwhile, you are able to offer your entire workforce support with the Employee Assistance Programme which offers everyday support for work/life issues, including an online CBT support programme for mental health issues such as anxiety and depression.
"- Judith Warr from PHP , A health insurance broker and Sick Pay customer.SPI delivers a financial benefit to the business. In the past, long term sickness absences have cost the business a substantial amount of money. SPI allows us to support our employees in the way we want to, without having a negative financial impact on the company."
A really attractive aspect of SPI is that it is very flexible and allows us to structure it the way we want. Employers can choose from a range of benefit amounts to replace a percentage of an employee’s earnings. We have chosen to offer a high percentage of earnings to our employees but the business could adapt this if circumstances change.”
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