With changes happening to employment rights regarding sick pay, we examine the benefits of using a recruitment agency and outline how businesses can leverage temporary staffing solutions to effectively manage costs associated with the changes.
2025 saw a record high in the average number of sick days per employee, topping out at a huge 9.4 days. This nearly doubles the number that was recorded pre pandemic and experts agree that this is just the tip of the iceberg.
Alongside this, 2024/2025 saw an increase of 846,795 in GP issued fit notes, of which 72% did not identify a reason for the absence. In a recent survey carried out by the BBC, over 70% of GPs revealed that they had never denied a fit note.
On the back of what are already alarming figures, the legislative changes to SSP are set to cause businesses more financial and operational difficulties.
These changes will inevitably lead to an increase in sickness costs for companies, both directly in the number of claims submitted and indirectly with the administrative burden of managing new SSP processes.
*This is the current set weekly SSP rate for 2026/2027
In the UK it is estimated that approximately 70% of sickness related absences are categorised as short term. This highlights a significant rise in the expenditure associated with short term absences and the financial challenges companies will face.
The past few years have seen costs increasingly being applied to businesses, these newest changes – along with another large hike in the National Minimum Wage – add yet more pressure in an already unstable economic climate. As a result, it is understandable that heightened uncertainty and prudent decision making is influencing business operations.
However – there is a viable solution.
Engaging the services of a reputable and compliant recruitment agency can play a critical role in developing a cost effective labour strategy which also eases operational pressures on the business:-
As the legal employer of the temporary worker the recruitment agency is responsible for ensuring that any sickness claims are managed and paid correctly. This protects companies from liability and the prospect of any dispute claims.
Removing the requirement for employees to earn a minimum weekly wage before qualifying for SSP can leave companies exposed to SSP claims.
For example: –
A worker starts their employment with a company and within their first few days decides that it is not the job for them. That worker can then opt to claim sick pay whilst looking for alternative employment.
A recruitment agency will eliminate this possibility as the liability lies with them.
The obligation lies with the recruitment agency to make sure that all payments are accurately made. Whilst those costs may be passed onto businesses in the form of increased invoice rates, those increases will be far lower than undertaking the rise in SSP costs that are predicted from April 2026.
The cost of the new SSP changes will also be felt in the administrative load that must be dedicated to the management of sickness absence; not only in the number of the new processes required but also in their complexity.
Accurate record keeping is essential to prevent errors that could lead employees to contact the HMRC Statutory Payment Dispute Team. Staff must receive comprehensive training in managing sickness absences and ongoing audits must be conducted to monitor compliance.
All these tasks will be undertaken by the recruitment agency, freeing up vital time for organisations to concentrate on their operations. Businesses will also benefit by being protected from any potential breaches in SSP payments.
Businesses who hire seasonal or part time staff will be at higher risk of an increase in SSP costs. However, employing staff permanently and increasing the wage bill of the company is not a long term viable solution.
Partnering with a quality recruitment agency offers the flexibility of engaging extra labour on a short term basis when productivity levels demand it. This allows for cost savings on permanent staffing bills without incurring the extra costs and stress of the legislative changes.
Agencies also undergo a higher number of audits on a regular basis. These are conducted by both clients and industry bodies such as the REC and GLAA, each audit will include different criteria which the agency must adhere to. A good agency will ensure that every aspect of their service is compliant and where possible exceeds the standards required to cover the individual wants of each company.
At QS Recruitment we understand the difficulties that businesses are facing and recognise the pivotal role we can play in relieving the cost, time and stress burdens that the changes to the employment law will bring about.
With over 30 years’ experience working alongside companies throughout the East Midlands and South Yorkshire and an exemplary track record of delivering a high quality and fully compliant service we are perfectly placed to support you with your temporary staffing requirements.
Our consultants are on hand 24/7 to offer assistance and guidance. Find your nearest branch here >> https://www.qsrecruitment.com/contact/ to discover our services and how we can help you.
A full timeline of the changes to employment law over 2026 and 2027 can be found here