Introduction To Sickness Cover For Employers
Unexpected sickness or injury can cause major disruption to both employees and employers. For the individual, it means loss of income and financial insecurity. For the employer, it can create uncertainty around pay obligations, workforce planning, and project delivery.
A sickness cover scheme helps manage these risks by providing structured financial support when employees are unable to work. Rather than relying solely on statutory sick pay, which is limited in both amount and duration, an employer sickness cover scheme ensures staff have access to additional income while protecting the business from unpredictable costs.
For construction firms in particular, the need for reliable sickness cover is even greater. Site-based work often carries higher physical risks, and projects depend on keeping skilled operatives available. A well-structured scheme gives employers confidence that absence is covered, while offering employees peace of mind that their wages will not suddenly stop if they fall ill or are injured.
Schemes like Welplan’s are designed specifically for the construction industry. They balance affordability for employers with meaningful protection for employees and can be tailored to the size and needs of the workforce.
What A Typical Scheme Includes
An employer sickness cover scheme sets out clear rules for when employees qualify, how long they must wait before payments begin, and how long benefits will last. While details vary by industry agreement or provider, most schemes follow a similar structure.
Eligibility
- Employees must be actively employed under a qualifying contract.
- Cover often begins once a short service requirement is met. For example, under the TICA agreement employees must have worked at least four weeks in the previous eight to qualify.
- Employers must continue paying contributions to keep cover active, even during absences such as annual leave or parental leave.
Waiting Days
- Schemes usually include a short waiting period before benefits start.
- Under the ECIA scheme, sickness benefit begins after seven waiting days, with payments backdated once absence reaches eight weeks.
- Under the TICA scheme, the waiting period is three days, with retrospective cover if absence lasts at least 28 days.
Benefit Length And Amounts
- Weekly payments are available for a fixed duration, often up to 26 weeks under ECIA and 52 weeks under TICA.
- Payment levels depend on industry grade or agreement. For example, ECIA rates range from £192 to £289.60 per week, depending on grade.
By setting clear eligibility rules and benefit limits, sickness cover schemes create certainty for both employers and employees. Staff know what they will receive, and employers can budget accurately without unexpected liabilities.
Risks Of Not Having Formal Cover In Place
Without a structured sickness cover scheme, both employers and employees face significant risks.
For Employees
Relying solely on Statutory Sick Pay (SSP) means receiving just £116.75 per week (as of April 2024) for a maximum of 28 weeks. For most households this falls far short of meeting basic living costs.
Lack of income security can increase stress, delay recovery, and even force employees to return to work before they are fully fit.
For Employers
Absence costs become unpredictable, particularly if informal arrangements are made on a case-by-case basis.
Without clear policies, disputes may arise between managers and staff about pay expectations during illness.
Productivity and project timelines are more vulnerable when employees are worried about financial stability.
In sectors like construction, where physical risks are higher, failure to offer a sickness scheme can make it harder to attract and retain skilled workers.
A formal employer sickness cover scheme provides fairness, consistency, and financial protection on both sides. It also strengthens an employer’s reputation as a responsible and supportive workplace.
Welplan’s Construction-Focused Scheme Overview
Welplan has been supporting the construction sector with employee benefits since 1960, and its sickness cover schemes are designed specifically to meet the needs of employers in high-risk, site-based industries.
Key Features Of Welplan Sickness Schemes
Tailored to construction: Schemes are aligned with national agreements such as ECIA and TICA, ensuring compliance with industry standards.
No medical checks required: All employees are covered automatically once contributions are paid, removing barriers linked to health history or age.
Weekly payments: Benefits are structured to provide ongoing income. For example, ECIA schemes pay between £192 and £289.60 per week for up to 26 weeks, depending on grade. Under TICA, employees may receive £135 per week for up to 52 weeks.
Flexibility for employers: Employers can cover short-term contracts, long-term projects, or entire workforces. Periods of cover can range from one week to indefinite arrangements.
High claim approval rates: As discretionary trust schemes, Welplan pays out in more than 99% of cases, ensuring reliable protection.
By pooling contributions across multiple employers, Welplan offers economies of scale that make sickness cover cost-effective, even for medium-sized construction firms. This allows businesses to provide valuable protection without the financial strain of self-insuring.
How Claims Are Submitted And Processed
When an employee becomes unable to work due to sickness or injury, the claims process is designed to be straightforward for both the employer and the employee.
Step 1. Reporting Sickness
- The employee must provide evidence of incapacity, usually a self-certificate for short absences or a doctor’s fit note for longer ones.
- The employer collects this documentation and confirms eligibility under the scheme.
Step 2. Employer submission
- The employer submits the claim to Welplan using the appropriate form or spreadsheet return.
- Contributions must be up to date to avoid delays in processing.
Step 3. Welplan review
- Welplan verifies the claim against scheme rules, ensuring sickness is genuine and not excluded (for example, due to strike action or non-qualifying service).
- The claim is assessed quickly to minimise disruption.
Step 4. Payment
- Approved claims result in weekly payments to the employee, usually beginning after the waiting period (3 days for TICA, 7 days for ECIA).
- Payments continue for up to the scheme’s maximum duration (26 weeks under ECIA or 52 weeks under TICA).
By managing claims centrally, Welplan reduces the administrative burden on employers while ensuring employees receive support promptly and fairly.
Employer Benefits: Reduced Admin, Improved Retention, Compliance Support
Setting up a sickness cover scheme is not just about looking after employees. It also delivers tangible advantages for employers.
Reduced Administration
Welplan manages claims, payments, and compliance with scheme rules, taking pressure off HR and payroll teams.
Employers only need to keep contributions up to date and submit basic employee information.
Improved Recruitment And Retention
Employee benefits play a major role in staff loyalty. Surveys show that nearly three-quarters of employees are more likely to stay with an employer that provides a good benefits package.
In construction, where skilled labour is in high demand, offering sickness cover can set an employer apart from competitors.
Compliance With Industry Agreements
Many construction sectors, including those under ECIA and TICA, require employers to provide welfare benefits such as sickness cover.
Partnering with Welplan ensures compliance with these obligations, avoiding disputes and demonstrating responsible employment practices.
Financial Stability
Instead of covering sickness absence costs on an ad hoc basis, employers contribute to a collective fund. This spreads risk and makes workforce absence more manageable from a budgeting perspective.
By providing a trusted scheme, employers strengthen their reputation as supportive, responsible businesses while gaining operational and financial advantages.
Get A QuoteToday
A sickness cover scheme protects your business as much as it protects your employees. By providing structured financial support during periods of illness or injury, you reduce uncertainty, improve retention, and show that you value your workforce.
Welplan has been trusted by the UK construction sector since 1960 to deliver fair, reliable employee benefits. Our sickness schemes are easy to set up, cost effective, and pay out in over 99% of claims.
Speak directly with our team on 0800 195 8080 or email welfare@welplan.co.uk to request a tailored quote for your workforce.
Give your employees peace of mind and give your business the confidence that absence is covered.