How to Create a Sickness Absence Policy

Why You Need a Sickness Absence Policy

Sickness absence costs UK businesses billions of pounds each year. According to the CIPD, the average employee takes 7.8 days of sick leave per year, and unmanaged absence can significantly impact productivity, morale, and costs.

A well-drafted sickness absence policy serves several important purposes:

• Sets clear expectations for both employees and managers about what happens when someone is ill.
• Ensures consistency in how absence is managed across the organisation, reducing the risk of claims of unfair treatment.
• Provides a framework for early intervention, so you can support employees back to work and prevent short-term absence from becoming long-term.
• Meets legal obligations around Statutory Sick Pay, fit notes, and the duty to make reasonable adjustments for disabled employees.
• Protects the business by providing a documented process that can withstand scrutiny if an absence-related dismissal is challenged at tribunal.

What to Include

A comprehensive sickness absence policy should cover the following areas:

1. Scope and purpose: Explain who the policy applies to and its objectives.
2. Notification procedures: How, when, and to whom employees should report their absence.
3. Evidence requirements: When self-certification is acceptable and when a fit note is required.
4. Sick pay: Details of statutory sick pay (SSP) and any contractual or occupational sick pay scheme.
5. Return-to-work interviews: When they will be conducted and what they involve.
6. Absence monitoring: How absence is tracked and what triggers formal action (e.g., Bradford Factor thresholds).
7. Formal absence management procedure: The stages of escalation, from informal conversations to formal meetings and potential dismissal.
8. Long-term absence provisions: How extended absence will be managed, including referrals to occupational health.
9. Reasonable adjustments: Your commitment to making adjustments for employees with disabilities or long-term health conditions.
10. Confidentiality: How medical information will be handled and who will have access.

Notification Procedures

Clear notification procedures are essential. Your policy should specify:

• When: Employees should notify their line manager (or a designated contact) as early as possible on the first day of absence, ideally before their usual start time or within a set period (e.g., within 30 minutes of their start time).
• How: Specify the accepted method of contact. Most employers require a phone call rather than a text message or email, as a conversation allows the manager to understand the nature and expected duration of the absence.
• Who: The employee should contact their direct line manager. If the manager is unavailable, specify a fallback contact (e.g., HR or another senior team member).
• Ongoing contact: If the absence continues beyond one day, specify how often the employee should check in. For short-term illness, daily contact is common. For longer absences, weekly or as agreed.
• Third-party notification: Allow for a family member or friend to call on the employee's behalf if they are too unwell to do so themselves.

Return-to-Work Interviews

A return-to-work interview should be conducted after every period of absence, regardless of its length. These are informal conversations, not disciplinary meetings, and they serve several purposes:

• Welcoming the employee back and checking they are well enough to return.
• Understanding the cause of the absence and whether any support is needed.
• Updating the employee on anything they missed during their absence.
• Discussing any patterns of absence and whether further action is warranted.
• Identifying any reasonable adjustments that might help prevent future absence.

Conducting return-to-work interviews consistently has been shown to reduce short-term absence by up to 30%, as employees know their absence will be noticed and discussed.

Statutory Sick Pay (SSP)

Statutory Sick Pay is the minimum amount employers must pay to eligible employees who are off work due to illness. Key facts for 2026:

• Rate: SSP is paid at a flat weekly rate set by the government (check gov.uk for the current rate, as it is reviewed annually each April).
• Waiting days: SSP is not payable for the first 3 qualifying days of absence. These are called “waiting days.” SSP begins on the 4th qualifying day.
• Duration: SSP is payable for up to 28 weeks of continuous absence.
• Eligibility: To qualify, the employee must earn at least the Lower Earnings Limit (LEL), be off sick for 4 or more consecutive days (including non-working days), and provide notification as required.
• Exclusions: Employees who are on maternity leave, receiving Employment and Support Allowance, or who have already received 28 weeks of SSP are not eligible for further SSP.

Many employers offer contractual or occupational sick pay that is more generous than SSP. If you do, make sure the terms are clearly documented in both the employment contract and your absence policy.

Fit Notes

A fit note (formally called a “Statement of Fitness for Work”) is issued by a GP or other qualified healthcare professional. Key points:

• When required: Employees must provide a fit note if they are off sick for more than 7 consecutive calendar days. For absences of 7 days or fewer, self-certification is sufficient.
• Two options: A fit note can state that the employee is either “not fit for work” or “may be fit for work” with appropriate support. The second option may recommend phased returns, altered hours, amended duties, or workplace adaptations.
• Employer obligations: If a fit note says the employee “may be fit for work” with adjustments, you should consider whether those adjustments are feasible. If they are not, you should treat the employee as not fit for work.
• Digital fit notes: Since April 2022, fit notes can be issued digitally, so employees may provide them electronically rather than as a paper document.

Managing Long-Term Absence

Long-term absence (typically defined as 4 weeks or more) requires a different approach from short-term absence. Your policy should address:

• Regular contact: Maintain supportive contact with the employee without being intrusive. Agree on a frequency and method of contact that works for both parties.
• Occupational health referrals: Where appropriate, refer the employee to occupational health for an independent assessment of their condition and likely return date.
• Reasonable adjustments: Consider what adjustments could facilitate a return to work, such as phased returns, modified duties, or changes to the working environment.
• Medical evidence: Gather sufficient medical evidence before making decisions about an employee's future employment. Never rely solely on your own assessment of the employee's fitness.
• Dismissal as a last resort: If an employee is unable to return to work and all other options have been exhausted, dismissal on the grounds of capability may be fair, but only if proper procedure has been followed and the decision is reasonable in the circumstances.

How Leavely Helps

Leavely provides the tools you need to manage sickness absence effectively:

• Dedicated sickness leave type: Track sickness absence separately from annual leave, with full visibility for managers and HR.
• Bradford Factor tracking: Automatic Bradford Factor calculation with configurable thresholds and alerts.
• Return-to-work workflows: Schedule and track return-to-work interviews with documentation linked to the absence record.
• Absence dashboards: Monitor absence patterns across your organisation with visual reports and trends.
• Document storage: Securely store fit notes and other medical documentation alongside the relevant absence record.
• Audit trail: Every absence action is logged, providing a clear record of how each case has been managed.