Sick Pay During a Personal Injury Claim — UK Worker Rights
When a personal injury keeps you off work, your immediate concern is usually income — Statutory Sick Pay alone (£116.75 per week in 2025/26) does not cover most people’s living costs, and the gap between SSP and your normal wage can be substantial. This guide explains what you are entitled to during your absence, how the personal injury claim recovers your lost earnings, and the practical steps to protect your financial position during recovery.
In this guide
- Statutory Sick Pay (SSP)
- Contractual Sick Pay
- How Sick Pay Affects Your Personal Injury Claim
- When Sick Pay Runs Out
- What Your Employer Cannot Do
- Practical Steps for Workers During a Claim
- Common Questions About Sick Pay During a Personal Injury Claim
- Related Guides
- Our Partner's Fees Explained
- Check If You Could Claim Compensation For Your Injury
Statutory Sick Pay (SSP)
SSP is the minimum sick pay UK workers are entitled to. As of April 2025:
- Weekly rate — £116.75
- Maximum duration — 28 weeks
- Eligibility — earning at least £123 per week (April 2025 threshold), working under an employment contract
- Waiting days — first 3 days of sickness are not paid (except where you have had a previous “linked” period of sickness within 8 weeks)
SSP is paid by your employer in the same way as your normal wages, and PAYE tax and National Insurance still apply. Self-employed workers do not receive SSP — they may claim Universal Credit or Employment and Support Allowance instead.
Contractual Sick Pay
Many UK employers offer “company sick pay” or “contractual sick pay” that goes above SSP. The terms are set out in your employment contract or staff handbook. Common arrangements:
- Full pay for a set period, then half pay, then SSP only
- Full pay for X months depending on length of service
- Discretionary additional payments
- Permanent health insurance kicking in after a set period
Check your contract carefully — many workers are entitled to more sick pay than they realise. Your contract should specify whether sick pay continues when you are absent due to an injury caused by someone else.
How Sick Pay Affects Your Personal Injury Claim
A common worry: “If I get sick pay, can I still claim lost earnings?” The answer is yes — but the calculation requires care. UK law generally requires sick pay to be deducted from the lost earnings claim, with some exceptions. The reasoning is that you should not be “doubly compensated” for the same loss.
SSP and the Lost Earnings Calculation
SSP IS deducted from the lost earnings claim — but only in the proportion that the SSP “duplicates” your actual wage loss. The calculation looks at your normal weekly earnings and subtracts only the SSP actually received.
Example:
- Normal weekly wage: £500
- SSP received: £116.75
- Weekly lost earnings claim: £500 – £116.75 = £383.25
- For 12 weeks off work: £4,599 in lost earnings recoverable
Contractual Sick Pay and the Lost Earnings Calculation
Where contractual sick pay matches your normal wage, you have no immediate lost earnings to claim — but your employer may have a “right of recovery” against your eventual compensation. Many UK employment contracts include a clause requiring you to repay sick pay if you recover compensation from a third party. Check your contract.
The CRU (Compensation Recovery Unit)
For benefit payments (Universal Credit, ESA), the Compensation Recovery Unit deducts the recoverable benefits from your compensation before it is paid. This is automatic and means you cannot keep both the benefits and the equivalent compensation for the same loss. The CRU does not handle SSP directly — that comes from your employer, not the state.
When Sick Pay Runs Out
For longer-term absences, both SSP (28 weeks maximum) and contractual sick pay (set period per contract) eventually end. What happens next:
1. Employment and Support Allowance (ESA)
A means-tested benefit for those unable to work due to illness or injury. ESA replaced incapacity benefit and operates in two phases — “assessment” and “main” rates depending on work capability assessment.
2. Universal Credit
For those with limited capability for work, Universal Credit can include a “Limited Capability for Work” element. The two systems interact in complex ways — specialist welfare benefits advice (typically through Citizens Advice) is recommended.
3. Personal Independence Payment (PIP)
A non-means-tested benefit for those with disability affecting daily living and mobility. PIP is not affected by income or capital and can be claimed alongside other benefits.
4. Interim Payments from the Personal Injury Claim
Where liability is admitted in the personal injury claim, interim payments are available to bridge the gap until full settlement. For serious injury cases, interim payments are routinely used to fund living costs, rehabilitation, and adaptations. See our personal injury claim process guide.
5. Permanent Health Insurance
Some workers have permanent health insurance (PHI) through their employer or privately. PHI typically pays 50-75 per cent of normal salary after a deferred period (often 13-26 weeks). PHI payments may or may not affect the personal injury claim depending on the policy terms.
What Your Employer Cannot Do
UK law protects sick workers from several employer behaviours:
Dismissal for Sickness Absence
Long-term sickness absence can lead to “capability dismissal” but only after a careful process — including occupational health referral, reasonable adjustments consideration, and a fair hearing. Dismissal without this process is unfair dismissal. Where the underlying injury was caused by the employer’s negligence, dismissal can compound the personal injury claim with employment law claims.
Dismissal for Making a Personal Injury Claim
Automatically unfair under UK employment law. The employer cannot dismiss or treat you detrimentally for making (or considering) a personal injury claim against them. In practice insurers usually handle the claim and dismiss the employer’s personal interest in it.
Discrimination Linked to Disability
If your injury is severe enough to be a “disability” under the Equality Act 2010, you are protected from disability discrimination. This includes the duty to make reasonable adjustments (modified duties, return-to-work plans, physical workplace adjustments).
Practical Steps for Workers During a Claim
- Check your sick pay entitlement — read your contract or staff handbook; ask HR if unclear
- Get a fit note from your GP — your employer needs this for any absence over 7 days
- Keep records of all payments received — wage slips showing SSP and any contractual sick pay
- Maintain communication with your employer — silent absence makes return harder
- Engage with occupational health if offered — this supports both your medical recovery and your legal position
- Discuss interim payments with your solicitor — particularly for longer-term absences
- Apply for any available benefits — particularly PIP, which is not affected by other income
- Keep all medical appointments — both for your recovery and your evidence
Common Questions About Sick Pay During a Personal Injury Claim
I am being paid SSP only. How am I supposed to live on £116.75 per week?
For most UK workers, SSP alone is insufficient. Options include: claiming Universal Credit (which can include a housing element), claiming PIP if your injury qualifies, asking your solicitor about interim payments from the personal injury claim (available where liability is admitted), and discussing reduced hours or modified duties with your employer if a phased return is medically appropriate. Citizens Advice can help map your specific entitlements.
My employer is pressuring me to come back to work before I am ready. What can I do?
Your fit note from your GP is the medical evidence. Where your GP says you are not fit for work, you should not be pressured to return. Premature return can also harm your legal claim — if you return to work and then have further absence, the insurer may argue the second absence is unrelated. Where pressure becomes excessive, that itself may form part of a bullying or constructive dismissal claim — see our bullying at work claims guide.
Can I keep my company sick pay AND claim lost earnings?
Sometimes. Many UK contracts include a “subrogation” clause requiring you to repay company sick pay if you recover compensation from a third party. Check your contract. Where there is no such clause, you may be able to keep both. Where there is, your employer will reclaim the sick pay from your compensation. Your solicitor will handle this through the settlement.
I am self-employed. Can I claim lost earnings during a personal injury claim?
Yes — lost earnings recovery for self-employed claimants uses your tax returns and bank statements to establish typical income, and then projects forward the loss during your incapacity. This is straightforward for established self-employed workers; for newer self-employed it can be more complex. A forensic accountant may be instructed for higher-value cases.
What if my employer refuses to pay sick pay?
You can complain to HMRC, who enforce SSP. For contractual sick pay disputes, ACAS can mediate, and Employment Tribunal claims can be brought for “unauthorised deduction from wages”. A specialist employment solicitor handles these claims, often alongside the personal injury claim.
Will my benefits be reduced because of my personal injury settlement?
Possibly. Lump-sum compensation counts as capital for means-tested benefit assessment, and amounts over £6,000 begin to reduce entitlement (or eliminate it above £16,000). A Personal Injury Trust protects compensation from these effects — see our personal injury trusts guide. Non-means-tested benefits (PIP, Attendance Allowance, State Pension) are unaffected.
Related Guides
Accident at Work Claims — UK Employer Compensation
Can I Sue My Employer? UK Worker Rights
How Much Compensation for Personal Injury?
Personal Injury Trusts | Protecting Your Compensation
Will My Personal Injury Claim Affect My Benefits?
How Long Does a Personal Injury Claim Take?
Check If You Could Claim Compensation For Your Injury
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