Sickness and sick pay

Sickness can be a tricky issue to manage. While sick employees need to be treated fairly, at the same time you want to ensure that sickness is not being used as cover for unauthorised absence. Taking disciplinary action against sick employees presents particular legal risks. You also need to ensure that you respect employees’ entitlement to statutory sick pay (SSP) or other contractual sick pay.

Managing sickness

The right sickness policies can help reduce sickness absence, discouraging employees from taking sick days as a form of extra holiday. For example, you might require employees to phone in sick (rather than taking the easier approach of sending an email). You might also ask to speak to them on their return and require completion of a self-certification sick note explaining the reason for the absence.

Monitoring patterns of sickness absence by different individuals and employees generally can help you detect potential problems. For example, high levels of sick leave on a Friday or Monday might raise suspicions.

Reviewing the reasons for sickness can also be important. For example, complaints of back ache may reveal genuine problems with workstations or work practices which you should address as part of your health and safety responsibilities.

Sickness and discipline

Unless you have clear proof that an employee is malingering, taking disciplinary action against an employee who you suspect of abusing sick days requires care.

Repeated absence can be grounds for disciplinary action or even dismissal where an employee’s frequent sick leave affects his or her capability to do the job. However you could face a claim of unfair discrimination if an employee’s long-term illness amounts to a disability. Do not take action against an employee whose illness is pregnancy-related.

Sick pay and statutory sick pay (SSP)

Almost all employees are entitled to statutory sick pay if they are unable to work for more than a few sick days in a row because of illness. Employees on very low earnings do not qualify.

SSP is payable at a flat rate, for up to 28 weeks in any period of sickness. The business may be able to reclaim part or all of their SSP payments from HM Revenue & Customs, depending on the amount of SSP paid out.

SSP establishes a minimum level of sick pay. An employee’s employment contract can offer a more generous level of contractual sick pay.