'Day 1' statutory sick pay to come into effect for UK agency workers from 6 April
Published on 18th February 2026
Employment businesses now have two months to review contracts, systems and policies and liaise with workers and hirers
At a glance
Agency workers will gain statutory sick pay entitlement from day one of illness when booked onto assignments from 6 April.
The changes remove the lower earnings limit and three-day waiting period that previously restricted SSP eligibility for agency staff as well as employees.
Zero-hours workers between assignments remain outside SSP entitlement as they do not satisfy the statutory definition of employed earner.
From 6 April, amendments to the Social Security (Contributions and Benefits) Act 1992 (SSCBA) introduced by the Employment Rights Act 2025, will mean that entitlement to statutory sick pay (SSP) arises on "day one" of a period of incapacity for work due to illness for all employed earners; that is, all employees and anyone with worker status including agency workers.
An agency worker who becomes incapacitated due to sickness while working on an assignment will therefore now be entitled to SSP from the first day of sickness, without any need to meet the lower earnings threshold or the three waiting days, on which entitlement has depended historically.
What if sickness arises before work has started or between assignments?
Where sickness arises before the first day of an assignment or on the first day but before work has started and the agency worker has agreed to the terms of that assignment, and would have started work but for their incapacity, case law suggests the agency worker will count as being "gainfully employed" for the purposes of the SSCBA definition of "employed earner", on which entitlement to payments such as SSP rests. Although this point is not expressly dealt with in the legislation or in guidance, it seems likely, on this analysis, that in such circumstances an agency worker would be eligible for SSP from the first day of that assignment until they are fit for work (up to a maximum of 28 weeks or until the assignment requirements cease).
However, agency workers engaged under zero-hours contracts for services on an assignment to assignment basis will have no overarching contract with the employment business and therefore no contractual relationship with the employment business between assignments. So, provided no assignment has been agreed, the agency worker will not be 'gainfully employed' between assignments and will not, therefore, satisfy the definition of an employed earner under SSCBA and will not have any entitlement to SSP from the employment business.
Action points
In preparation for the entitlement to SSP from day one of sickness, employment businesses should now:
- Review and update contracts and assignment documentation. Ensure terms clearly reflect SSP entitlement from day one of sickness once an agency worker is booked onto an assignment and that any “no contract between assignments” clauses are clear.
- Update payroll and HR systems. Configure systems so that SSP can be triggered from day one of sickness for agency workers on agreed and booked assignments and is correctly calculated and recorded in line with the new regime.
- Revise internal policies and procedures. Update sickness reporting procedures, eligibility checks and guidance notes for consultants and payroll teams to reflect the new rules for agency workers.
- Train consultants and relevant staff. Provide targeted training so staff understand when agency workers become entitled to SSP from day one, how this interacts with zero‑hours and assignment‑based arrangements and how to handle sickness notification and entitlement queries in practice.
- Communicate with workers and hirers. Refresh onboarding materials, FAQs and client information to explain the new day-one SSP entitlement for agency workers on assignment and the respective responsibilities of the employment business and hirer.
Osborne Clarke comment
Starting this preparation well ahead of 6 April will help ensure compliance, minimise disputes about SSP entitlement and reduce administrative and financial risk.
