Limiting sick pay not the answer to absenteeism

As Tesco announces it will no longer allow employees to claim sick pay for the first three days of illness, Croner Consulting, one of the UK’s leading providers of business advice and support, is alerting employers that this may not be the solution to reducing absenteeism.

Richard Smith, employment law expert at Croner Consulting says: Absenteeism ranks in the top three concerns of employers, especially at this time of year when sunny days are a tempting excuse to ’pull a sickie’.

But Tesco should consider that their new rules on sick pay have the potential to backfire. Employees may feel they are being given the liberty to take a guilt-free day off knowing they are not getting paid, and levels of short-term absenteeism could even increase.

Employers are legally obliged only to offer statutory sick pay and after that payment for sick days is at their discretion. Although Tesco’s new policy on sick pay is perfectly legal, many companies often find that a more generous scheme boosts morale and loyalty.

Employees do not have any grounds for complaint providing the sick pay policy is consistent with their contract of employment. However, if an employer is thinking of following in Tesco’s footsteps, they must consult their employees first. Failure to do so could result in employees suing for loss of wages, or constructive dismissal.

Richard believes there are other, less drastic ways to manage absenteeism and advises employers to introduce the following measures:

Take a serious approach to absenteeism. Closely monitor absence levels of all employees Make the employee aware that their absence has been noted. Consider arranging a meeting to determine if they have any health problems affecting their work, or to catch up on work they have missed Take disciplinary action if an employee is found to be taking sick days that are not genuine.

Richard concludes: Tesco could be taking a risk with its new policy as opportunist employees may see it as permission to take unpaid leave. In this situation, absence levels will need to be closely monitored and consequences of abusing the system clearly communicated to all employees.