I have terminated an employee’s employment who is on sickness absence. He has exhausted his right to contractual and statutory sick pay. Do I need to pay him during the notice period?

I have terminated an employee’s employment who is on sickness absence. He has exhausted his right to contractual and statutory sick pay. Do I need to pay him during the notice period?

Due to a quirky rule, the answer to this depends on how much notice you are required to give under the employee’s contract of employment and, in particular, if it is more than the employee’s statutory minimum notice entitlement.

The statutory minimum notice entitlement is one week for each complete year of service, capped at 12 weeks. If the employee’s contract obliges you to give notice which is at least a week more than their statutory minimum notice entitlement, you do not need to make any payment during the notice period. If the employee’s contract requires you to give less than this, you have to pay salary in full for the duration of the notice period (even though the contract says they are entitled to nothing).

 

Disclaimer: This information is provided for general guidance only and is not intended to constitute legal advice. You must consult our employment solicitors if you require advice on your situation or circumstances.

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