Q: Should I ask an employee to repay SSP if they get compension from a third party following their road accident?
Nov 17 2010
Answered by: Peter Done Ask a question
To avoid a situation where your business is partly financing an undue windfall for an employee, you can include a term in your contracts of employment (which you should ensure is read and signed by the employee) which provides for the recoupment of sick pay in certain circumstances.
Specifically, you can include a term which states that any sick pay paid to an employee who is absent from work because of sickness or injury, where the circumstances of the sickness or injury are such that the employee receives or is awarded compensation, will be recouped by you. The pay recouped can include SSP and additionally any contractual payments in relation to sickness over and above SSP paid to the employee that they are entitled to under their contract.
In the event of such an occurrence, you should agree with the individual employee the method and time frame of recoupment.
The amount recouped should reflect only the amount of sick pay that you have paid the employee, and should not be more than the total amount the employee has received in compensation.
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