4. Sickness absence and pay

The Black/Frost report (see page 13) highlighted studies suggesting a “causal link” between high sickness absence and generous occupational sick pay (OSP): “Where an employee can be off on full pay, there is no financial incentive to be at work. Furthermore, paid sick leave can often be seen as an entitlement, to be used up each year in a similar way to annual leave. This may be an unintended consequence of OSP policy.”

However, far too many sick workers have to rely on Statutory Sick Pay which is worth less than the National Minimum Wage. The hallmark of a good employment package, as far as unions are concerned, would be one with a sick pay scheme that maintains regular income as close as possible to its full level for as long as possible and treats all staff fairly.

Nevertheless, the statutory framework (SSP and other benefits like Employment and Support Allowance) play an important role in underpinning workplace sick pay arrangements. Work research organisation the Work Foundation, with backing from Disability Rights UK, recently called for the government to allow employees with fluctuating health conditions (such as asthma, depression or rheumatoid arthritis) to pre-emptively arrange part-time sick leave (see box below). It is an idea union reps and employers might want to consider.