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 Set-up > Payroll Policies.
The Apply UK Occupational Sick Pay Rule is used in conjunction with the Apply UK Sick Pay Rule, which is used to generate SSP earnings.
Important: The Apply UK Sick Pay rule must run before the Apply UK Occupational Sick Pay Rule. The order of the rules in the payroll policy is important, because it determines the order in which the application applies the rules. Additional information about this rule is available in Apply UK Sick Pay Rule.
You can configure the rule to pay out OSP as a separate line item in the payslip or have SSP combined into the OSP earning as an offset.
Both the Apply UK Sick Pay rule and Apply UK Occupational Sick Pay Rule generate earnings based on approved time away from work (TAFW) requests that are recorded in Dayforce.
Unlike the Apply UK Sick Pay Rule, the Apply UK Occupational Sick Pay Rule relies on the entitlements and balances functionality of Dayforce to calculate a payment amount. SSP is paid according to standard government requirements, but OSP can vary depending on the organization and the employee.
For example, an organization can have an OSP payout scheme of 100% for the first 20 hours of the sick request, 80% for the next 20 hours, 60% for the next 20 hours, and only SSP after. This can also vary depending on department, per pay type, per grade, and so forth.
For more information about the parameters in this rule, see Apply UK Occupational Sick Pay Rule.