“Employers often struggle to find shift cover at short notice, leading to disruption for customers,” said Jane Gratton, deputy director of public policy at the BCC.
“The government’s impact assessment did not produce compelling evidence on the day-one rights issue, so there may yet be unforeseen consequences.”
The government says the changes will mean about 1.3 million people on low wages who fall ill will receive either 80% of their average weekly earnings or statutory sick pay – which is currently £116.75 per week – whichever is lowest.
“The new rate is good for workers and fair on businesses as part our plan to boost rights and make work pay, while delivering our plan for change,” Kendall said.
However, some groups are asking the government to set sick pay for the lowest paid workers at no less than 95% of their weekly pay.
TUC general secretary Paul Nowak said: “This shouldn’t be the end of the story.
“We urge ministers in future to raise the replacement rate for the lowest earners beyond 80% and undertake a wider review of the statutory sick pay rate.”
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