National Sickie Day brings grim warning

Celebrated annually, National Sickie Day has gained notoriety as the day workers are most likely to call in sick. This year, however, it carries an additional weight as it is the last one before transformative changes to sick leave laws come into effect on April 6. Legal experts warn that these adjustments could result in a substantial increase in costs for employers, especially in sectors heavily reliant on part-time or casual workers.

Ruth Medlock, an Associate and employment expert from Wright, Johnston & Mackenzie LLP (WJM), states “After this year, National Sickie Day will never look the same again – it will have an unprecedented impact on employers as it will hit them in the pocket more than ever.” The changes under the Employment Rights Act eliminate the three-day waiting period for Statutory Sick Pay (SSP), allowing sick leave pay from the first day of illness, along with the abolishment of the Lower Earnings Limit (LEL). This means that more employees, estimated at 1.3 million according to The Department for Work and Pensions, will qualify for sick pay.

While the reforms are welcomed by many as a means of better protecting workers from financial hardship, they pose significant challenges for employers. Medlock highlights that “Last year sick days hit their highest level in fifteen years, so the impact of employee absences is already providing difficult for employers,” adding that businesses could face an additional annual cost of around £450 million as a result of the changes.

Employment sectors such as hospitality and retail, which often employ a large number of part-time or casual staff, may experience the most pronounced effects. “As well as providing earlier access to Statutory Sick Pay, the removal of a lower earnings threshold means many more people will qualify for it,” warns Medlock. This change not only increases the number of potential SSP claimants but also adds a new administrative burden to employers.

To navigate these changes effectively, Medlock urges employers to approach the impending reforms with an open mind and to plan proactively. "Examine your approach to sickness absence and make sure you have the right processes and manager training in place to best protect yourself and your employees," she advises. Additionally, she underscores the value of an effective return-to-work interview practice, which can help reduce unexpected absences and support employee well-being.

Communication plays a vital role in managing absences, and Medlock emphasizes that “an appropriate level of communication from managers to employees when they are off sick – with a focus on support and wellbeing – is also encouraged to mitigate risk.” By prioritising responsible employment practices, businesses can foster a healthy workplace culture that ultimately enhances the long-term well-being of their workforce as they brace for the changes ahead.