DEDUCTIONS & CONTRIBUTIONS IN THE EVENT OF LONG-TERM ILLNESS
- EOHCB National
- 19 hours ago
- 3 min read
In Terms of the Sick Pay Fund (SPF) Rules in the Hairdressing, Cosmetology, Beauty and Skincare Industry
The Big Question
“My employee has just been booked off for three months! What do I do? What do I pay? How does this even work?”
The alarm bells are ringing, the waves are crashing, and the ship feels like it is tilting. Every employer knows this panic stations moment. One day it is business as usual, the next you are staring at a medical certificate that stretches weeks into months.
A barber looks at the empty chair and wonders how to keep the shop buzzing. A nail technician sees appointments piling up and clients asking for refunds. A beauty therapist worries about loyal customers drifting away. A hairdresser feels the weight of a team suddenly short staffed.
And then the questions tumble out: it is no work, no pay, yet the Bargaining Council says contributions must continue. How can I pay for someone who is not working! What happens if I stop! Am I missing something! The storm feels endless, the waves higher than the mast, and the horizon out of reach.
This is where the Sick Pay Fund (SPF) steadies the ship. The SPF is a statutory fund, administered by the National Bargaining Council, designed to protect both employees and employers when illness stretches beyond the usual sick days. It works like a safety net: you contribute a little each month, and when the storm hits, the system catches you before you sink.
Under Clause 7 of the SPF Rules, monthly contributions are compulsory. Employers, employees, working employers, and legal owners who are registered members must all contribute, calculated on either the employee’s basic salary or wage depending on the work code. And here is the crucial part: even when an employee is absent for a long period, contributions remain due and payable. If contributions fall into arrears, the employee automatically loses their right to claim from the SPF, and the employer becomes responsible for paying any sick days that would have been covered.
But what if the employee is not earning a salary because they are receiving SPF benefits instead of wages? The rules are clear: contributions must still be paid. Employers can request that the SPF deduct the employee’s portion directly from the benefit payout before reimbursing the employee. This ensures continuous membership, protects benefits, and avoids placing financial strain on the employer when no salary is due.
The SPF provides two categories of paid sick leave: short term illness (less than six days, 33 days in a three year cycle) and long term illness (seven or more continuous days, also 33 days in a three year cycle). Members may move up to three days between these pools depending on need. Claims must be supported by a valid medical certificate, submitted within 90 days, and backed by proof of paid contributions. Without these, the claim will be rejected.
For employers, the obligations are specific: monthly contributions must continue, even if the employee is not earning a salary, even if the employee is receiving payment from the SPF, and even if the employer is temporarily unable to recover the employee’s portion from salary. Employers remain responsible until the SPF payout is made, and if contributions are not paid timeously, the claim will be rejected.
Maintaining contributions protects both parties. For employees, it guarantees continued eligibility for sick pay benefits, prevents interruption of income during recovery, and protects maternity benefit eligibility under the twelve month continuous contribution rule. For employers, it ensures compliance with the Collective Agreement, prevents disputes or liability claims, and reduces the financial burden when employees cannot work for prolonged periods. And when illness extends beyond SPF limits, employees may still apply for UIF illness benefits for additional support, while employers must continue contributions for as long as the employee remains employed.
From Storm to Tropical Calm
Long term illness can feel like a perfect storm, with alarm bells ringing and panic stations in full swing! Yet the SPF is designed to steer both employers and employees into calmer waters. By keeping contributions up to date, understanding the rules, and using the system as it was intended, salon and spa owners, whether managing one chair or a full team can move from the chaos of uncertainty to the sunshine of stability.
Picture it: the storm has passed, the sails are steady, and the ship glides into a tropical harbour. Employers and employees alike can finally breathe, knowing the system has carried them through. It is here, in calmer weather, that the industry can sip its martinis and piña coladas - a metaphor for relief, balance, and the reassurance that compliance brings.
The EOHCB and the Bargaining Council remain the trusted anchors, ensuring that no employee is left without income during medically certified incapacity, and no employer is left to carry the storm alone.
