What happens to employee benefits during long-term sickness?
Published on: 02/04/2019
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What happens to employee benefits during long-term sickness?

An employee's contract of employment may contain express provisions entitling them to be paid, and to receive contractual benefits, during any periods of sickness absence.

If there are express contractual terms, these terms should comprise:

  • the duration of any entitlement to sick pay;
  •  the rate at which sick pay will be paid; and
  •  whether an employee will continue to receive any contractual benefits during a period of sickness absence.

For example, an employer may agree to pay sick pay at the rate of full salary for a certain period during sickness absence, followed by half rate for a further period. The employment contract should specify whether company sick pay is equivalent to basic salary only or basic salary and contractual benefits.

If employment contracts are silent as to pay and benefits during periods of sickness absence, an employee may still be entitled to statutory sick pay, provided that they meet the eligibility requirements. In such instances, generally an employer will not be under any obligation to continue providing contractual benefits. Nevertheless, employers should assess the benefits in question and consider whether pausing them could give rise to claims for unlawful discrimination.

It is sensible for employers to consider how previous employees on long term sick leave have been treated to ensure consistent treatment and to help safeguard against claims for unlawful discrimination.

As a general point, employers should ensure that they are providing appropriate support to employees off on long-term sick leave, for example, via regular contact (if desired by the employee) and also by keeping employees up-to-date on internal vacancies and/or promotion opportunities.

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Disclaimer The information in this article is provided as part of Legal Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article. This article is correct at 02/04/2019