Employers often cover the cost of Statutory Sick Pay (SSP) for their employees. In certain circumstances, they are entitled to recover these costs from the government. For example, if a business is eligible for Small Employer Relief, it can generally recoup the SSP paid to its employees. This relief is designed to lessen the financial burden on smaller businesses when staff members are unable to work due to illness.
The ability to recover SSP funds provides vital financial support, particularly for small and medium-sized enterprises (SMEs). Reclaiming these costs can significantly improve cash flow and potentially prevent financial difficulties arising from unexpected staff absences. Historically, mechanisms for reclaiming SSP have evolved alongside broader changes in social security legislation, reflecting ongoing efforts to balance employee welfare with the needs of businesses.
