Occupational sick pay and ESA

catali

Hello!
My employer says my occupational sick pay will be reduced if any benefits I receive take me over my normal salary. They say it will be reduced by “the standard benefit rate “ until they know the outcome of any benefit application.

Can they do this? Under what rules do they do this?

My hours have already been substantially reduced while I’ve been off sick because I'm on zero hrs contract (but I’m a permanent employee with long length of service). They could drop further at any time. Is there any thing to stop them doing this?

My employer is a county council. I run out of SSP soon and am told I should apply for ESA and PIP. My salary When I went off sick was over £12k; now something over £7k.
Thanks!

pmlindyloo

So your employer is paying you contractual sick pay whilst you are off sick and they say once you go onto ESA then they will reduce the standard benefit rate from your contractual sick pay if together it comes to your normal salary?

OK, so what are they taking as your normal salary since you are on a zero hours contract?

The standard rate of ESA is £73.10 if you are over 25 and £57.90 if you are under 25.

As regards 'can they do this?' you need to look at your employment contract and see if this is written into it.

You can apply for ESA (probably contribution based ESA or new style ESA if you are in a full service area) as soon as your SSP has ended. This can be paid even if you are receiving contractual sick pay.

Your employer should give you a form to produce for the DWP to say why they are no longer paying you SSP.

calcotti

catali wrote: »

Hello!
My employer says my occupational sick pay will be reduced if any benefits I receive take me over my normal salary. They say it will be reduced by “the standard benefit rate “ until they know the outcome of any benefit application.

Can they do this? Under what rules do they do this?

My hours have already been substantially reduced while I’ve been off sick because I'm on zero hrs contract (but I’m a permanent employee with long length of service). They could drop further at any time. Is there any thing to stop them doing this?

My employer is a county council. I run out of SSP soon and am told I should apply for ESA and PIP. My salary When I went off sick was over £12k; now something over £7k.
Thanks!

ESA is a benefit for people who have illness/disability that limits their ability to work. As pmlindyloo says you cannot be paid ESA until your entitlement to SSP ends (28 weeks). Once you have the SSP1 form from your employer confirming the end date you can apply even if this is in advance but will not be paid until after SSP entitlement ends. To get contribution based ESA/new style ESA you must have paid and/or been credited with Class 1 or 2 NI contributions between April 2015 and March 2017. If you were earning over roughly £500/month throughout this period you should qualify.

Your occupational sick pay entitlement is determined entirely by your contract of employment.

PIP has nothing to do with work. You may qualify for PIP if you have a health issue that limits your ability to look after yourself https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/

catali

Thanks For replies. Yes, SSP ends shortly and I am making application for contributions based new style ESA. I am under Teachers’ pay and conditions. I work for a music service as a “peripatetic”. They have kept the hours on my timetable/contract unless the schools cancel the services. As I am off sick schools are cancelling except where they have managed to put in a substitute teacher.

From what you say, It sounds like the threat to deduct my occupational sick pay is not normal, or necessary or a legal obligation on their part. Is that right? I will check my terms and conditions carefully. Hopefully I can get union help to check. I was beginning to think there was some legislation that capped the combined occupational sick pay + benefits.

Thank you for your comments!

calcotti

catali wrote: »

It sounds like the threat to deduct my occupational sick pay is not normal, or necessary or a legal obligation on their part. Is that right? I will check my terms and conditions carefully. Hopefully I can get union help to check. I was beginning to think there was some legislation that capped the combined occupational sick pay + benefits.

No it's not normal. It will depend on your terms and conditions.

I also recommend that you keep a copy of the SSP1 and your payslips etc. Unfortunately I have come across instances where DWP get told by HMRC that a claimant is receiving money from an employer, assume they are working and then say they have been incorrectly paid ESA. If this happens you need to be able to show that it is occupational sick pay you are receiving and that you are not working which means that you are entitled to the contribution based ESA.

catali

Thank you very much for the advice. I will take heed!