Contractual sick pay: checking your employment contract for extra support

Updated: 16 Oct, 2025
By Chris Salmon

If you are injured at work, you may be entitled to Statutory Sick Pay (SSP). However, many employers also provide contractual sick pay, sometimes called company sick pay. This is an additional benefit written into your employment contract that can offer more financial support if you cannot work because of an injury or illness.

At a glance

  • Contractual sick pay depends on individual terms, but Statutory Sick Pay must be provided if eligibility rules are met (Source: GOV.UK)
  • Contractual sick pay is extra support paid by your employer on top of statutory sick pay.
  • Details of entitlement will be set out in your employment contract or staff handbook.
  • Payments and duration vary widely between employers.
  • It is important to check your contract and confirm with HR what you are entitled to.

What is contractual sick pay?

Contractual sick pay is money paid by your employer when you are off work due to sickness or injury. Unlike statutory sick pay, which is set by the government, contractual sick pay is agreed between you and your employer. It can provide higher payments or longer support than SSP.

Find out more about Statutory Sick Pay (SSP).

Check your contract and staff handbook for your emplyer's sick pay policy. Ask HR to confirm the rate and length in writing. Keep payslips and letters. Knowing your entitlement helps your finances and your claim.

Chris Salmon

Commercial Director
Work Accident Advice Centre

Where to find your entitlement

Your entitlement to company sick pay should be clearly set out in:

  • Your employment contract.
  • Your staff handbook.
  • Written terms and conditions provided by your employer.

If you are not sure, ask your HR department or line manager to confirm what scheme applies to you.

How contractual sick pay works

Each employer sets their own rules, but typical schemes include:

  • Full pay for a set number of weeks, followed by half pay for a further period.
  • Payments linked to your length of service.
  • Limits on the number of sick pay days in a year.

For example, you might get full pay for four weeks and half pay for eight weeks if you have been with your employer for more than two years.

Does contractual sick pay replace SSP?

No. Contractual sick pay is paid in addition to SSP. In most cases, your employer will pay your normal wages as company sick pay and offset the amount of SSP within this payment. You should not receive less than the statutory minimum.

Who qualifies for contractual sick pay?

Eligibility depends on your employer’s scheme. Some employers only offer company sick pay after you have worked with them for a set period, such as six months. Others may require medical evidence, such as a fit note from your GP.

What if my employer does not offer contractual sick pay?

If your employer does not provide any sick pay scheme, you will still be entitled to SSP if you meet the qualifying conditions. You may also be able to apply for benefits such as Employment and Support Allowance (ESA) or Universal Credit.

Disputes about sick pay

If your employer refuses to pay company sick pay that is stated in your contract, this could amount to a breach of contract. In this situation, you should:

  • Check your written terms carefully.
  • Raise the issue with HR or your line manager.
  • Seek advice from ACAS or a solicitor if the issue is not resolved.

Key takeaways

  • Check your employment contract to see if you are entitled to company sick pay.
  • Payments and length of cover vary widely, so confirm with HR if unsure.
  • Company sick pay does not replace SSP but can provide extra financial support.
  • If there is a dispute, ACAS and legal advice can help protect your rights.

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About the author

Chris Salmon is a legal commentator and co-founder of Quittance Legal Services. He has written extensively about workplace accidents, employment rights and the claims process. Chris's work has been cited in national media and he regularly contributes practical guidance to help injured workers understand their options.

More about Chris and WAAC

Last reviewed October 2025 by Chris Salmon