Managing sickness absence costs industry millions of pounds a year. This varies from the cost of replacing long term sick employees with temporary labour, to reacting to and dealing with shorter term ad hoc sickness absence.
As part of its present mission to (ostensibly) streamline industry and hand power back to employers, the government has commissioned an independent review of sickness absence with a view to simplifying sickness absence management. In response to this, the government has stated that it will instigate various steps to streamline the present system.
To reduce the financial burden on employers seeking to ascertain the level of sickness of an individual, the government has stated that it will establish a state funded health and work assessment and advisory service for employees who have been on sick leave for more than four weeks. This would replace the status quo whereby an employer would have to pay to have an employee examined.
Further, it has promised ‘fit note’ guidance for GP’s employers and employees to emphasise the importance of assessing health in relation to work in general, rather than ability to continue with a specific role.
The government has also stated it will look to tackle the direct cost to businesses of sickness absence by considering whether specific expenditure to keep employees in, or expedite their return to, work should attract tax relief and also to abolish the percentage threshold scheme which compensates smaller employers for high levels of sickness absence in their organisations. To make sickness absence management more straightforward and to reduce the pitfalls for employers, they are also considering abolishing the present statutory sick pay record keeping obligations, enabling employers to keep records however best suits their organisation.
Whether or not these changes will come into effect and/or streamline the system remains to be seen but it is clear that the government is trying to be seen to be tackling the sickness absence epidemic in British industry. This can only be good news for businesses.
Richard Whalley, Associate, Employment Department
Brabners Chaffe Street LLP
Tel 0161 836 8800
