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Abolition of Percentage Threshold Scheme (PTS)


Abolition of Percentage Threshold Scheme (PTS)


From 6 April 2014 any employer who pays Statutory Sick Pay (SSP) will not be able to claim under the Percentage Threshold Scheme (PTS) for any SSP due after 6 April 2014. As an employer you will still be required to pay SSP.


The Government will be introducing later in the year, no date yet, a new service which will provide free occupational health advice and support for employees, employers and GPs to help people with a health condition to stay in or return to work. The Government expects that any financial losses experienced by businesses as a result of the end of the PTS will more than likely be offset by the reduction in lost working days that the new Health and Work Service will bring.

The new Health and Work Service will be funded through the abolition of the Statutory Sick Pay (SSP) Percentage Threshold Scheme (PTS).

The new scheme will be made available to companies in England, Scotland and Wales with workers who have been absent due to illness, or are expected to be absent, for longer than four weeks.

The new Health & Work Service:

  • Referrals can be made either by the employer or by the employee’s GP. The service will not be compulsory, so employees will be able to refuse to be assessed or to follow any recommended treatment or course of action.
  • Employers, employees and GPs will be able to access advice through a phone line and a website.
  • Following an assessment, employees will receive a return to work plan with recommendations to help them to return to work more quickly and will provide information on how to get appropriate help and advice.

Sickness absence has a major impact on your business particularly because it is normally unforeseen and therefore cannot be planned for in advance. If your business is going to be affected by the abolition of the PTS then you need to really tighten up on absence in your business. Often sickness absence is allowed to continue because the manager does not deal with the problem as soon as it occurs. There may be various reasons for this but often it’s because they are unsure of how to deal with situation.

What you need to do:

  • Have a clear policy in place
  • Deal with all absences as soon as they occur.
  • Ensure staff understand the absence reporting procedures and the potential consequences for failing to report absence correctly.
  • Carry out return to work interviews
  • Train managers on how to deal with absence

Don’t leave it too late before you deal with the situation and if you’re unsure then seek help from people who can guide you through the process.



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