Employee Resigns Then Goes Off Sick: Do You Pay Full Notice or SSP?
Running an SME means every penny and every person counts. If an employee resigns and then goes off sick during their notice period, it’s natural to wonder: Should you pay their full notice pay or just Statutory Sick Pay (SSP)?
The short answer: It depends on how their contractual notice compares to the statutory minimum notice.
The Rules (in Plain English)
- Statutory minimum notice for employees is 1 week per complete year of service, up to a maximum of 12 weeks.
- If the notice you as the employer must give is the same as statutory or only 1 week longer, then you must pay the employee their normal full pay during their notice — even if they’re off sick.
- If the contractual notice is more than 1 week longer than statutory, you only need to pay SSP (or contractual sick pay if offered) during sickness.
Example
Sarah has worked for you for 2 years. Her statutory notice is 2 weeks. Her contract says 6 weeks’ notice.
She resigns and is off sick for her entire notice period.
| Scenario | Outcome |
|---|---|
| Contractual notice is 6 weeks (more than 1 week over statutory) | You only need to pay SSP or contractual sick pay. |
| Contractual notice is 3 weeks (statutory 2 weeks + 1) | You must pay full normal pay for all 3 weeks. |
What You Need to Do ✅
- Check the contract – What notice period applies?
- Compare it to statutory – Is it the same, +1 week, or more?
- Decide pay:
- Same or +1 week → Full pay during sick notice.
- More than +1 week → SSP or contractual sick pay.
Summary
When an employee resigns and goes off sick during notice:
- Notice ≤ Statutory + 1 week → Full pay during sick notice
- Notice > Statutory + 1 week → SSP or contractual sick pay
Once you know this rule, it’s much simpler to apply. If you’re unsure about your specific situation, we can help you get it right first time.
FAQs
Does length of service matter?
Yes, the statutory minimum notice is based on length of service (1 week for each full year, up to 12). You compare contractual notice against that figure.
What if we offer enhanced contractual sick pay?
Then your contractual sick pay rules apply if your notice period is more than one week over statutory.
Does this still apply if they work part of their notice?
Yes — the rule still applies, but the pay will reflect any days actually worked vs sick days.
Need Expert Support?
At JTHR Consultancy, we help SMEs navigate tricky notice pay and sickness issues with confidence.
Contact us today to get tailored, practical advice for your business.
