5 June 2015

How to treat sickness in the workforce

One of the more tiresome issues for managers in SMEs without a dedicated HR function is that of the employee who is off sick. Often the priority is to cover the individual's absences rather than proactively manage the reasons for them. When pressing productivity takes precedence, procedures available through the Company Sickness Absence Policy can be overlooked. But failure by either side to address the issue is likely to further impact the employee's health and prospects of a timely return.

The Government has tried to address this problem with the introduction of its Fit for Work Scheme, which is now being rolled out and should be fully operational by autumn 2015. The Scheme aims to provide a free referral to an Occupational Health (OH) assessment after only four weeks absence. Following that period, an employee can be referred by his employer to the Scheme, which will mean contact with an Occupational Health provider and production of a Return to Work plan. It remains to be seen how useful this is in practice. The main points are:

• The primary referral route will be via the employee's GP. Employers will not know of this unless they make enquiries of the individual under their usual sickness absence procedures.
• Employees will be discharged from the Scheme if it is not able to offer further assistance, or after three months if a return to work is not yet possible.
• An employer will not be able to force an employee to use any part of the Scheme. 
• The service will only be able to contact the employer to share any return to work recommendations if the employee consents.
• Employees who receive a Return to Work plan will not need to produce a doctor's 'fit note' unless they remain absent after being discharged from the service.
• It is not compulsory for employers to refer employees to the Scheme, nor to implement any recommendations highlighted in the Return to Work plan once an employee has been discharged. 
• Employers could receive tax breaks if they pay for medical treatment that has been recommended by the Fit for Work scheme or by their own in-house occupational health service. Previously, the cost of any medical intervention funded or provided by an employer was likely to be liable for tax as either a benefit in kind or as earnings. DWP guidance confirms that this tax exemption will be limited to £500 per member of staff per tax year, with any payments over this limit liable for income tax and national insurance contributions on the excess

The Government has published guidance for employers, which can be found at: https://www.gov.uk/government/collections/fit-for-work-guidance. Whilst this may prove a useful addition to a company's usual procedures, it will be clear from the above that it cannot replace a robust company scheme to deal with sickness absence in the workforce.