Occupational Sick Pay Schemes

Description

Use this page to update Occupational Sick Pay Schemes.

Usage

This page is to be used for adding and maintaining Occupational Sick Pay Schemes.

Adding a new scheme

Scheme Name: Short name of the scheme that will show in the drop down menus.
Scheme Type: There are 3 types of scheme available to choose from. The type selected will determine the method of calculation used.
- Fixed sickness year: Restarts the employee's sick entitlement using the date entered in 'Start of Sickness Year'
- Rolling sickness year: The system will look back over the past year from the start of each period of sickness to calculate the entitlement.
- Fixed year from date joined: The employee's sick entitlement year starts on the anniversary of their continuous employment date.
Start of Sickness Year: to be used when the 'Scheme Type' is set to 'Fixed sickness year'.
Payment Rate Basis: The formula used to calculate the rate at which sickness is paid.
Salary Reduction Formula: The formula used to calculate the rate at which salary is reduced.
Salary Reduction Element: The element that will be reduced when sickness is paid. In order to be displayed in the list, the pay element must have To be used in Salary Calculation ticked on the Pay Elements Screen.
Renewal Length Months Override: Schemes will default to 12 months long. This field is to be used when the scheme differs from that length. Enter 999 if the scheme will last the employee over the entirety of their employment.
Scheme Pattern Start Year: This field is required when the 'Scheme Type' is 'Fixed sickness year' and a value is entered in 'Renewal Length Months Override'.
Base OSP On: There are 2 options available to select
- Percentage: Sickness paid is based on a percentage of the basic sickness rate for different periods of sickness.
- Fixed: Sickness paid is fixed amount.
Take previous OSP at highest band: An employee's sickness entitlement to increase in between sickness records. Some of the sickness taken prior to this change may have been paid at a lower payment band. If this is checked then all the days paid at lower bands will be redistributed over the higher bands at the new entitlement.
Bands (1-4): These are the rates that the sickness is paid at. The type of value entered here will depend on the option selected for 'Base OSP On'.
Add SSP to the OSP?: Check this if SSP is to be paid as well as OSP. Please be aware that if this is checked and the band is set to 100% of pay then the employee will be earning more by being off sick.
Service Bands: This is used to determine how many days of sickness pay an employee is entitled to, based on their length of employment. Use the buttons to edit and delete these records. There can be up to 20 service bands. Enter 999 to cover all scenarios.
- Service Up To Months: The number of months an employee has been employed.

Cloning a scheme

You can create a new scheme based on an existing one by using the cloning functionality.

OSP Scheme: This is a list of all the existing schemes available to the company. Select one from the list and then click the Clone button. The screen will be populated with the values for the selected scheme leaving the 'Scheme Name' blank.

What happens if I change a scheme that employees are enrolled onto?

When you change an OSP scheme that is currently in use by employees the following pop-up will appear.