Sick pay for zero hours contracts

Zero-hours contracts are common in many UK industries, particularly in hospitality, retail, healthcare, and education. While they offer flexibility, they also come with unique challenges—especially when it comes to managing things like sick leave.

If you need immediate assistance on this issue, we recommend contacting our 24/7 HR advice line, and one of our employment law experts will help you.

If you’re an employer wondering how sick pay for zero-hour contract workers work, this guide breaks it down clearly. We’ll look at eligibility, calculating pay, and your responsibilities under UK employment law.

What is a zero-hour contract?

If you don't already know a zero-hours contract is a type of employment agreement where you are not obliged to guarantee any set number of working hours. Workers on zero-hour contracts are typically called in as and when they are needed, and they’re not required to accept every shift offered.

While the flexible nature of these contracts can suit both parties, they raise some important questions around employment rights—including sick pay.

Do employees on zero-hour contracts get sick pay?

The short answer is yes—zero-hours contract workers may be entitled to Statutory Sick Pay (SSP) if they meet the eligibility criteria set out by the government.

There is no legal distinction between standard employees and zero-hour workers when it comes to SSP, but eligibility often depends on the worker’s average earnings and their employment status.

What are the rules for SSP and zero-hour contracts?

Statutory Sick Pay (SSP) is a government-mandated payment that eligible workers receive when they are too sick to work.

To qualify for SSP, your employee on a zero-hour contract must:

• Have started employment and performed some work for you

• Are sick for four days or more in a row (including non-working days)

• Follow your rules about reporting sickness or tell you within seven days

• Have earned on average at least £125 per week (before tax) in the past eight weeks

How much SSP do they get and how long for?

They’re eligible to the same rate of SSP as full-time employees, which is currently £118.75 a week. However, the duration in which SSP is given varies based on whether or not your employee has had 3 months of continuous employment.

It's important to note that this 3-month continuous period doesn't need to be right before a sickness absence and isn't interrupted by:

• Periods of sickness

• Annual leave

• If your employee wasn't offered work

It only gets interrupted by a trade dispute like a strike or if your employee receives a written termination of their contract.

If your employee has been with you for at least 3 months continuously, their contract is seen as indefinite, meaning they are treated as having a permanent contract unless stated otherwise.

This means they can keep receiving SSP for the whole time they're unable to work, up to 28 weeks, unless you give them a written notice that their contract has ended or SSP eligibility ends for other reasons listed on the SSP1 form.

If your employee hasn't been with you for 3 months continuously, they can still receive SSP until the end of the period they agreed to work.

However, it won't continue for the entire sickness period if it goes beyond their agreed work period. And if your employee is offered and accepts another job with you, their eligibility will last until the last assignment ends, unless you give them a written notice that their contract has ended.

When do you have to pay SPP?

Typical SSP is payable from the fourth ‘qualifying day’ of sickness. The first three days are called waiting days and are unpaid—unless your company chooses to cover them under a contractual or company sick pay policy.

A qualifying day is any day your employee normally works or is expected to work. For zero-hours contracts, this can get murky.  If there is no established work pattern, you should agree a set of qualifying days based on previous working behaviour or reasonable expectations.

This is especially important when deciding when the waiting days and SSP entitlement should begin.

What if your employee has more than one employer?

If your zero-hours contract employee relies on more than one employer to reach the lower earnings limit, they may not be eligible for sick pay depending on their circumstances as it must be reached from the earnings from one employer.

Regardless of whether your employee has more than one job or not, you have a responsibility to pay them correctly.

How to calculate average earnings for SSP for zero-hour contracts

Because zero-hour workers don’t have consistent weekly hours or income, you’ll need to calculate their average earnings over a relevant period to determine SSP eligibility.

The relevant period is the period that will be used to determine your worker’s average pay. The end of the relevant period is the last payday before the first day of sickness and the relevant period is the 8 weeks preceding this.  

However, if your worker has not completed 8 weeks of service with your business, then the entire duration of their employment should be used as the relevant period.

• Determine the relevant period

• Total the gross earnings received during those weeks

• Divide that figure by 8 to get the average weekly earnings

• If the average is £125 or more, they qualify for SSP

If their earnings are below the threshold, they are not eligible for SSP—though you may choose to offer a discretionary or company sick pay scheme instead.

Best practices for managing sick pay for zero-hour contracts

Navigating zero-hour contract sick pay in the UK can be tricky, but a proactive and transparent approach goes a long way. Here are a few tips:

Establish a clear sick pay policy

Even if you’re only offering Statutory Sick Pay (SSP), it’s important to put it in writing. Your policy should:

• Outline how employees should report sickness

• Detail the evidence required—such as a self-certification form for up to 7 days, and a fit note beyond that.

• Explain SSP eligibility, when it applies, and how it’s calculated for zero-hours workers

• Clarify whether you offer enhanced or contractual sick pay in addition to SSP

This clarity protects both you and your employees and helps prevent confusion or claims of unfair treatment.

Communicate the policy to all workers

Once you’ve drafted your sick pay policy, make sure your staff know where to find it. You could include it in:

• Employment contracts or contract packs

• Staff handbooks

• Induction and onboarding materials

• A shared online space, like a company intranet or HR platform

Zero-hours workers may not feel as connected to the business as full-time staff, so proactive communication is key.

Track hours and earning accurately

Since SSP eligibility for zero-hours contract workers depends on average earnings over the last eight weeks, accurate record-keeping is essential. You should keep:

• Detailed timesheets or rotas showing all hours worked

• Payslips or payroll reports

• Records of absences and sickness periods

This data will be crucial if there’s ever a dispute over entitlement or if HMRC asks for evidence.

Use HR and payroll software where possible

If you regularly employ zero-hours workers, investing in reliable HR and payroll software can save you time and stress. The right system can:

• Automate SSP calculations based on real-time earnings data

• Help you maintain accurate employee records

• Flag eligibility for sick pay automatically

• Generate self-certification or sickness forms

This helps ensure compliance while reducing admin.

Stay up to date with employment law

Sick pay regulations and SSP thresholds are reviewed annually, so make sure you stay informed. To help with this you can:

• Check in in with an HR advisor or employment law specialists periodically

• Review your policies and contracts annually to ensure they’re still accurate and compliant

Support and promote wellbeing

Zero-hours workers may feel less secure about their finances. So, consider additional steps to support them, such as:

• Offering contractual sick pay to those who don’t meet SSP thresholds

• Providing guidance on claiming Employment and Support Allowance (ESA) or Universal Credit if SSP isn’t available

• Creating a supportive environment where staff feel comfortable reporting illness without fear of losing future shifts

• Offering additional services such as an employee assistance programme

A little extra support can go a long way in building loyalty and trust within your workplace.

Managing sick pay for zero-hours contract workers may not be as straightforward as it is for full-time staff, but with the right systems and policies in place, it doesn’t need to be a headache. The key is to plan ahead, communicate clearly, and treat people fairly.

Get help with your responsibilities for zero-hour workers

Understanding how to handle sick pay on a zero-hour contract is essential for staying compliant and supporting your workforce. While zero-hours contracts offer flexibility, they also come with additional responsibility—especially around pay and entitlements.

If you’re looking for more guidance on your responsibilities to zero-hour workers, you can check out our other guides on zero-hour contract employee rights:

•  Zero-hour contract notice periods

• Holiday pay for zero-hour contracts

• Zero-hour contract maternity pay

And remember, by calculating SSP fairly and offering clarity to your employees, you can ensure a more stable and supportive working environment, even for your most flexible workers.