UK Occupational Sick Pay, or OSP, is an amount that organizations pay in addition to statutory sick pay (or SSP). When you configure the application to generate OSP in the Payroll module, you must use the Apply UK Occupational Sick Pay Rule, configured in Payroll Setup > Payroll Policies.
Before You Begin: You must configure the Apply UK Sick Pay Rule and position it so that it runs before the Apply UK Occupational Sick Pay Rule. More information is available in Payroll Policy Rule Sequence: UK Occupational Sick Pay Rule
Apply UK Occupational Sick Pay Rule Parameters
Occupational Sick Pay Earnings
Select the earnings that will be used to pay out OSP. Depending on your organization's pay out scheme, add an earning for each of the different OSP levels (for example, OSP100, OSP80, and so on).
Time Away From Work Reason Codes
Select the TAFW pay codes that the rule looks for when determining whether OSP needs to be paid. These should typically be the same as those pay codes that are selected in the same parameter of the Apply UK Sick Pay Rule.
Auto Pay Reduction Earning
Select the earning code that will be used for generating a negative earning for reducing auto pay.
If you define an auto pay reduction earning, you should ensure that the Stop Auto Pay checkbox isn’t selected in the parameters of the Apply UK Sick Pay Rule. If you select this checkbox, auto pay will not be paid and the auto pay reduction might not be generated.
Balance Day Unit
Select the unit option that your organization uses for days.
SSP Earning
Select the earning used for paying SSP, which identifies the SSP earning so that it can be offset correctly. An SSP earning is offset, or essentially not paid, for any days that an employee receives an OSP earning.
SSP Offset Earning
Select the earning to be shown on the payslip for offsetting SSP. An SSP earning is offset, or essentially not paid, for any days that an employee receives an OSP earning.
Any SSP that is paid is hidden and paid as part of occupational pay. Therefore, the paid amount of occupational pay is reduced by SSP. If an earning isn’t selected, then SSP appears on the payslip alongside OSP. Regardless of whether this is selected, the net amount paid should be the same.
Occupational Sick Pay Capped At Regular Pay
If this is selected, the total amount of occupational pay that can be paid is capped at the employee's regular pay.
Important: Selecting this checkbox can have implications for retroactive pay scenarios, because these extra amounts that need to be generated can be limited by the cap.