That's how I heard about it galen, my DH mentioned hearing about it on Radio 4, a programme I had missed. I dismissed it, thought perhaps it was just to do with people employing staff in their home such as nannies. But, I had a look online, and it is true. Just spoke to FSB (Federation of Small Business) and they confirmed. Could be a real problem for me. Over the past 2 months for example, I have one member of staff on maternity leave and being paid SMP and two others off with surgery and associated recovery/physiotherapy. It was costing me just short of £300 per week to pay the statutory benefits which caused cash flow problems but at least I knew I could claim it back. The government argument is that the money saved will be used to administer a scheme whereby if a staff member is off for more than 4 weeks they can be referred to a board who will asses their fitness for work. This is grossly unfair and insulting as it infers that anybody off that long is swinging the lead, or their GP is dishonest, and I would not insult any of my staff by insisting on such a referral. I truly despair, as more and more things which should be provided by the state, i.e. sickness benefits, are being dumped on small employers, apart of course from those who employ staff illegally and pay cash. The only way for an employer to avoid liability for SSP ( and I emphasise that I am not trying to dodge responsibility) is to pay everyone below the lower earnings limit. i.e if I changed all my staff to contracts with fewer hours than they do at the moment, so how is that fair to staff? Yet another money saving scheme which has not been thought out properly.