No Sick Pay, just SSP - normal, or a red flag for a Grad Scheme job?

[TooHot2022]

DS has just got his contract for his first job after graduating. It's on the grad scheme of a well-known name company (US-owned, if that's relevant). Salary c. £45k

I was surprised to see this clause regarding sick pay:

"If you qualify, you will receive Statutory Sick Pay (SSP) during absence. In our absolute discretion, we may choose to make additional payments to you (inclusive of SSP) during a period of sickness."

I've been out of the workplace for a while now, but I always had contracts stating a number of paid sick days (e.g.20) when you would be paid at your full salary rate before it defaulted to SSP.

Is this the new normal, or something to worry about/ ask questions?

Grateful for thoughts/ experience/ advice.

If he's young and fit unlikely to be an issue.

A lot of places put that in the contract but informally pay a little more.

Unlikely a private sector role would ever specify permitted sickness in a contract

Unlikely a private sector role would ever specify permitted sickness in a contract

I've worked for 5 different private sector companies who all had an allocation of sick days in the contract! But as I say, this was a few years ago now.

This is a massive red flag. I joined a grad scheme after university and have been hiring manager for American companies whilst being based in the U.K.
I've never heard of only giving SSP in a corporate environment. I'd ask your son to question it but also ask his friends joining grad schemes - it could be we are going to hell in a handcart and this is how bad junior level recruiting has gotten.

For 45 grand a year as a new graduate I don't think id worry too much! Thats a great salary he should be proud of himself. Id just advise him to save a little for a 'rainy' day

Does he get any perks? How long are the holidays. I think it’s a bit crap tbh. I know plenty of people in private industry who get proper sick pay.

Lots of perks:
Joining bonus after 3 months (several £K)
10% bonus scheme
25 days holidays
Flexible/remote working option
PMI

It's just this sick pay thing which seems out of kilter?

I think the PMI out weighs the sick pay. TBH I don’t think it’s a bad thing. Stops them having to pay the ones taking the piss but gives the option to pay for genuine illnesses.

Ssp as opposed to company sock oaybos pretty much the norm these days. Too many years of people taking the piss and using it as extra holiday time.

This would be a red flag for a job which was his "forever " job as it shows disregard for welfare of staff who develop serious conditions such as cancer etc.

However at his age and stage I wouldn't worry about it. Use the job as a stepping stone. Just make sure that by time he is buying flat, settling down with a family he has a job with at least 3 months sick pay guaranteed in his terms and conditions.

I’m finding it’s increasingly normal to have only SSP in the contract, although some businesses will pay more than the contractual obligations.

That is a great starting package - well done to your son!

Well yes, that's what I wondered. I remember a particular employee in one company I worked for complaining how she hadn't managed to 'use up' her full sick days!

My last employer had a clause like this (in public sector now so it's different). I was only off twice in 5 years and they paid me as normal but because it's at their discretion, they could stop when they felt someone was taking the piss with frequent long weekends or frequent "migraines" the day of seriously urgent or important work. I was friends with a colleague who had 4 months off for a serious illness, 2 months of those in hospital, they did pay her as well.

As a US firm I'm not surprised it is statutory on sick pay but has significant advantages in respect of salary and other benefits.

@chiffchaffchiff that's my experience too (working in finance)

Reads to me like they’re not committing to pay anything above SSP. Not that they won’t, just that they don’t have to. A bit like bonuses being discretionary.

@49er the vast majority of people don't have forever jobs anymore, and with young people lots won't have the same career.

He should save his bonus. I agree it stems a bit mean but it’s well paid with other advantages. US companies see employment perks differently. If he doesn’t have another offer, he cannot turn this down surely?

He had another offer, but lower salary and less desirable location - that had 4 weeks of paid sick pay though!
He won’t turn this down on the basis of this, but it’s useful to be aware, and yes, to keep some emergency savings.

WOW £45k for a grad scheme role?! That's amazing!!!

I work for a high street company with offices in a number of global locations.

28k
25d hol
Performance related bonus
6m sick pay
Flexible working

Lack of sick pay would not a be a red flag as a grad. Perhaps once they get to 25/30 this is something they can consider for their next company

No it really isn't. Fully paid sick leave is very commonly discretionary in the private sector / corporate environment. And US companies are notorious for poor terms. You must work with some exceptionally uncommon companies - most US companies seem to struggle with the concept of paid sick leave, paid holidays and employment protections. Looking at US employment law is a good hint as to what US employers think.

The wording implies that full pay may be paid, at their discretion.

It opens up a bit of a minefield for the company in terms of potential discrimination claims, but it’s maybe worth asking for clarification.

I’ve never worked for any company that did not give full pay even for extended periods, so it does seem a strange thing.

£45k as a graduate is a very good deal. That's c£20k more than the national average salary being paid to someone with no experience yet.

If he is not capable of saving himself a buffer to cover him for 12 weeks in case of illness on that salary then there is something wrong with his budgeting.

I’ve never worked for any company that did not give full pay even for extended periods, so it does seem a strange thing.

Have you only worked for large businesses / public sector? Genuine question.

It's not that unusual in SMEs, who don't have unlimited pots of money to open themselves up to the risk of multiple employees out on extended sickness absence, although I'd perhaps expect it to be graduated based on service - e.g. first 6 months ssp only, up to 2 years 5 days, up to 3 years 10 days, etc.

It's hard to say without knowing what is custom and practice. SSP is a joke. A friend broke their leg on the first year of a graduate scheme and couldn't work for a number of weeks, she wouldn't have been able to pay her rent on statutory sick pay

Investment banks.

I understand many places don’t do this, but for a company with a graduate scheme paying that amount it seems a bit unusual.