LRD guides and handbook February 2015

Pay: getting it right - bargaining information for union reps

Chapter 7

Medical suspension pay

[ch 7: page 66]

Employees suspended on medical grounds because of a statutory requirement are entitled to medical suspension pay (section 64, ERA 96). This applies where there is a potential danger to their health, for example, from lead, rubber, chemicals or radioactive substances.

To be eligible an employee must have one month’s continuous employment and be fit for work. Employees who have unreasonably refused suitable alternative work lose their right to medical suspension pay.

An employee employed for a fixed term of three months or less or under a specific task contract which is not expected to last for more than three months is not entitled to a medical suspension payment.

The amount an employee is entitled to be paid is “a week’s pay” for every week of suspension. “A week’s pay” is calculated according to statutory rules and is also the basis for the calculation of redundancy payments (see below) and the basic award compensation for unfair dismissal. This entitlement is capped at a period of 26 weeks.

Compensation for breach of the statutory right to medical suspension pay is capped by the statutory “week’s pay” (£475 from 6 April 2015) for 26 weeks.