Productivity and profits are affected by sickness, and if staff absence is a regular occurrence morale and motivation can plummet. A business can improve absence rates and minimise effects by putting effective procedures and policies in place. As an employer there are also certain legal rules to follow.
If a member of staff cannot work for four days or more because of an illness they are entitled to a minimum level of sick pay. This applies to both full and part-time employees and agency workers who are employees for National Insurance purposes and earn more than the National Insurance lower-earnings limit (around £82 at present).
However your company may have a more generous scheme, so you can opt out. (But still keep detailed records.) But if you do use the state scheme be clear about legibility. Remember that statutory sick pay is subject to normal deductions such as income tax and employee’s National Insurance contributions. SSP is at present payable for up to 28 weeks for any one period of sickness or series of linked periods of sickness.
There are cases when you can legally withhold SSP. For example, if an employee has recently claimed incapacity benefit or severe disablement allowance, or is in custody you may withhold benefit.
It is possible to recover some of the SSP paid out by deducting this money from the National Insurance (and Income Tax) contributions you send to HM Revenue & Customs. Any sick pay you do recover needs to be detailed and recorded for the end of the tax year paperwork and full records must be kept for three years. (Legally employers are required to keep information on absence and sickness, but only for statutory sick pay purposes and this should not contain reasons for absence.)
You must have employer’ liability insurance in case a member of staff has an accident or suffers sickness as a result of working from you. The statutory minimum cover is £5 million. Display your certificate of liability insurance at work for all to see.
How should I monitor absence?
You must record and monitor sickness accurately. This allows you to work out how much working time is lost and any particular pattern – for example how often individual employees are absent and whether employees regularly call in sick on a Friday or when there is a big football match! Is the absence short-term certificated or uncertificated long term sickness or unauthorised time off and persistent lateness?
Conduct return to work interviews after absences (be sensitive). This may help establish a hidden reason for absence such as work overload or family problems. Always check absence levels when recruiting, so you have an idea what you might be dealing with.
To manage and control sickness effectively you must produce clear written guidelines for employees so they know what sickness leave they may be entitles to and the procedures for reporting absence. The policy can be set out clearly in the terms and conditions of employment (see below). Remember that if you keep more detailed absence record for the purpose of monitoring absence levels you need the employees’ express consent as this information is sensitive personal data under the Data Protection Act.
What should be included in absence and sickness policies?
The policy may include when time off might be allowed, how the worker should notify you if they are ill, late for work or absent for another reason and when they should submit a self certificate or medical certificate. Under statutory sick pay rules self certification is only required after the fourth day and a medical certificate from the eighth day of absence. Any pay arrangements should be covered in the written statement of terms and conditions. Your policy should also include possible procedures for using the employers’ own doctor of medical adviser. If your company has a return to work interview this should be explained.
The consequences of not complying with company rules should also be outlined – for instance if staff abuse the system there should be a clear explanation of what disciplinary measures will be taken. Make sure you name the person or department who is responsible for keeping attendance records and make reference to any other relevant policies e.g. alcohol/drug misuse, health and safety, discipline and grievance. Mention also that excessive sickness can result in dismissal after the proper procedures have been followed. Counselling, rehabilitation programmes for long-term sickness, attendance bonuses or incentives could also be included.
What happens if absence is becoming a real problem?
If an employee is often absent or late and does not explain their reasons to your satisfaction you may consider disciplinary action. But be aware that disciplinary action should not be taken in cases of genuine sickness and that sickness, domestic problems or travel difficulties may not necessarily amount to misconduct.
Before you consider disciplinary action you could sharpen up procedures. Make sure you ask absent employees to phone in at a given time each day, ensure line managers follow up any unexplained absence and conduct return to work interviews.
If employees are finding it difficult to manage work and home responsibilities consider flexible working arrangements (see separate article on flexible working). Parents of children under six (or 18 for a disabled child) have a right to request flexible working and to be taken seriously.
Give employees the opportunity to improve by giving warnings, both oral and written. If things do not get better you may, as a last resort, and only after proper and fair procedures have been followed, consider dismissal. This is not something to take on lightly and you should take advice and follow the law.
