How to manage long-term sickness absences in your business

Long-term sickness absence can cause a range of problems for a small business. First, you have a sick employee and as per your legal duty of care, you must prioritise their health and wellbeing. Second, they can hurt a small business, not just financially but operationally, as you lack the manpower to drive the company forward.

So, what should you do in this situation? In this article, the UK’s leading company formation agent, Rapid Formations, explores the HR procedures small business owners should follow to manage employees on prolonged sick leave. They also suggest tips to reduce long-term sickness absences in your organisation.

Reporting long-term sickness absence

First, let’s establish what the term means. Sickness absence is classed as long-term if it exceeds four weeks. This can concern physical and mental sickness, both of which must be treated as equally important.

When the employee exceeds the self-certification window of seven days, they must provide proof of long-term sickness. So, in the first instance, you need to check that they can supply this.

This is also known as getting a ‘fit note’ and it must be obtained from a registered healthcare professional, such as a doctor, nurse, or pharmacist. The note (either physical or digital) explains the employee’s health condition, the medical reason as to why they are unfit to work, and how long they must be off work.

Ideally, the employee should provide you with a fit note on their 7th absence day. However, if there’s a delay, they need to get in touch with you and explain what the delay is. For instance, there may be a long wait for a doctor’s appointment.

In addition, they should follow any internal sickness absence policies you have in place. If you currently don’t have one of these, keep reading to find out how to implement one.

Providing sick pay

The employee is then entitled to the correct sick pay during a long-term sickness absence. As an employer, you are legally obligated to provide statutory sick pay (SSP) to all eligible workers who, as per the gov.uk website, must:

• Be classed as an employee
• Earn an average of at least £123 per week
• Have been ill for more than 3 days in a row (including non-working days)

Some employers provide additional sick pay. For example, up to five days of full pay, followed by SSP. Check your sickness policy to ensure that the employee receives the correct pay.

Note that while on long-term sick leave, they are still entitled to their annual leave package.

Communicating during sickness absence

Staying in touch with employees while on long-term sick leave is essential. Before the absence, you should establish who will be the staff member’s point of contact while they’re away (it could be yourself, a line manager, or an HR manager), how you’ll communicate with each other (e.g. by call or email) and how often.

Good communication shows that you support your team and value their health and recovery. This is especially important if they are absent due to mental ill health and are at risk of feeling isolated while off work. However, you should be careful not to overwhelm the employee and establish a good communication plan that they are comfortable with.

It also helps keep you up to date on their progress and allows you to make the necessary arrangements to keep the business moving while they’re away. For instance, if someone is off sick for two months, you may need to hire a temp to cover them.

Furthermore, during long-term sickness absence, it’s crucial to keep staff connected to the business and updated on any important news. For example, if a particular process or policy changes while they’re away or a new person joins (or leaves) the team, they should be notified. Being kept in the know will make their return much easier and far more seamless.

If an employee is on long-term sick leave due to a disability, as their employer, you are legally obligated to tell them about important changes at work, ACAS explains. For instance, if you’re hiring and the role is open to internal staff members, you must notify the employee on sick leave, giving them an equal opportunity to apply. Otherwise, you could face legal action for disability discrimination.

Managing an employee’s return to work

At the end of a long-term sickness absence, you should host a return-to-work interview. This isn’t a legal requirement, but it’s useful and considerate to do so, ensuring that they are updated on anything they may have missed while away and that they have the support they need to do their job.

You should also check their fit note for any comments and recommendations from their doctor regarding returning to work and any adjustments the business may need to make to facilitate them.

For instance, if the employee was off sick due to stress or depression, the fit note may suggest a phased return to work (e.g. reduced hours) to make the transition easier. Use the meeting to discuss their different options and come up with a suitable plan together.

You should have an internal return-to-work policy, which you should follow at this stage. If you don’t have such a policy in place yet, the staff member’s line manager should arrange an informal chat with them to assist them in their return to work.

Dismissal for sickness absence

You may choose to dismiss an employee if they take persistent long-term sickness absences. This, however, can be a complex procedure depending on their circumstances, so you should follow the ACAS Code of Practice to ensure that your dismissal is fair and lawful.

How to reduce long-term sickness absence

The reasons for long-term sickness absences can involve anything from burnout to parental leave. Some of these we have no control over, like maternity leave, for example. However, in other instances, there are many things you can do as an employer to minimise long-term (and short-term) illnesses and safeguard your organisation.

Create a sickness absence policy

First things first – you need a sickness absence policy. This is probably quite far down your list of priorities at the moment, but bear in mind that managing sickness absences will only get more difficult without one as your business grows. So, avoid complications by implementing a policy early.

The purpose of this policy is to let employees know the correct process to follow when reporting a sickness absence. It should explain key details such as:

• How, when, and who employees should notify when they are sick and unable to work
• What details they need to provide (such as the type of illness and when they expect to return to work)
• How and when they are expected to keep in touch during their sickness absence
• How the company will support sick employees
• How the company will support their return to work after sick leave
• Pay and annual leave entitlement during sickness absences
• Disciplinary action if the policy is not followed

If you already have a sickness absence policy in place, consider reviewing it. Check that your policy is clear, fair, and suitable for the whole company. Maybe different departments have different rules or maybe some sections need revising. It’s important to have an up-to-date, clear policy that works for everyone.

By following protocol, you’ll be able to record long-term sickness absences more accurately and evaluate that data if you find that they’re becoming too frequent, which brings us to the next point.

Understand your sickness absence data

If you suspect that long-term sickness is becoming a habit in your organisation, you first need to understand the data behind it. Get a clear view of when illnesses spike and the possible reasons why that could be happening.

For example, if you notice that people tend to take lengthy time off work at the start of the year, perhaps that’s caused by burnout from a busy Christmas period. Or maybe there’s an absenteeism (habitual absence) problem in your workplace that needs addressing.

Before you can implement solutions, you need to get to the root cause. So, look at your sickness absence records and see if you can spot any possible patterns around long-term absences. Also, consult your team leaders and managers to get their insights and formulate a collective action plan that will work for all teams.

Introduce a health insurance package

A possible solution could be to introduce an employee health insurance package. After all, the best way to reduce long-term sickness absences is to look after your employees’ health.

Corporate healthcare typically covers both physical and mental health, including benefits such as quick access to private GP appointments, hospital care, and counselling support. So, whether an employee needs to take time off due to a leg injury or stress, you can rest assured that they have access to the support they need to get better and return to work swiftly.

You’ll also find that some healthcare providers offer additional perks to promote good health, thus reducing your staff’s chances of falling ill. For instance, Vitality members collect points the more they exercise, which they can later exchange for treats and rewards like cinema tickets.

They also offer exclusive discounts on healthy food services and fitness trackers to help people improve their lifestyles and live better. Other insurance providers that specialise in small business cover include Bupa and AXA.

Be sure to shop around to find the medical cover that your business needs, and if you have the budget to introduce this benefit, it could make a significant difference in the level of long-term sickness absences in your company.

Otherwise, if you have an existing policy, it’s worth checking that all employees are aware of the benefits they are entitled to. For example, they may not know that they have dental cover or access to therapy sessions. So, it’s a good idea to update your team on the business healthcare package and how to use it.

Try well-being 1-2-1s

Another solution you could consider is well-being 1-2-1’s. You’ll be glad to hear that this won’t cost you anything and may make a considerable difference to your employees’ mental health.

The idea is to assign a neutral host to each employee (or anyone who would like a well-being 1-2-1). The host shouldn’t be a managerial staff member, but rather a colleague from another department. So, a customer service representative might be paired with a finance associate.

This way, people have a safe and confidential space to bring up anything they might not feel comfortable discussing with their line manager (such as workloads or company processes). The host’s role is then to offer impartial advice and facilitate an escalation process if, where, and when appropriate.

During these meetings, the host should also take notes, which are to be shared with the employee only. This allows them to track discussions and progress, ensuring that the employee is getting the help they need.

This 1-2-1 system is a simple and effective way to give your staff an outlet for anything that might be troubling them, especially if it’s affecting their health. In the long run, it can help minimise long-term sickness absences caused by mental ill health.

These are just some of our top tips for preventing excessive long-term sickness absences in the workplace. To find the best solution for you, you should communicate with your team and implement procedures that work for your organisation.

Summary

Small businesses experiencing long-term sickness absence should start by following the HR process outlined in this blog, on top of their own internal policies. If such policies have not yet been established, it’s essential to introduce them to manage sick leave effectively.