Letter Informing Employee on Sick Leave That Their Pay Will be Stopped or Reduced

This letter is used to inform an employee on sick leave that their pay will stop or be reduced before their entitlement to paid sick leave comes to an end.

When to Use This Sick Pay Reduction or Cessation Letter

Use this letter where an employee is approaching the end of their entitlement to paid sick leave and needs to be told that payments will stop or reduce.

It is intended to be sent before the change takes effect.

Sick Pay Entitlement and Employment Contract Terms

The employee’s contract of employment should set out any sick pay provisions, including Statutory Sick Pay (SSP) and any entitlement to occupational or company sick pay.

Employers are not required to continue paying salary during sickness absence. Where occupational or company sick pay is offered, the employee’s entitlement to it should be recorded in writing.

Statutory Sick Pay Position

Most employees are eligible for Statutory Sick Pay, which is payable for up to 28 weeks in any one period of incapacity for work.

With effect from 6 April 2026, SSP is available to all employees, regardless of their earnings, and is payable from the first full day of sickness absence. This document takes account of that change.

Letter Informing Employee on Sick Leave That Their Pay Will be Stopped or Reduced is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.