Occupational sick pay is a contractual right, where an employer can offer more than the statutory minimum under a company sick pay scheme.
As a freelance HR consultant, I often encounter small and medium businesses grappling with the decision of whether to offer occupational sick pay. It’s a nuanced issue, with both benefits and drawbacks that need careful consideration.
The Pros
1. Employee Well-being: Offering sick pay demonstrates a commitment to employee health, which can boost morale and productivity.
2. Attracting Talent: Competitive benefits, including sick pay, can attract high-caliber candidates.
3. Reduced Presenteeism: Employees are less likely to come in sick, which can prevent the spread of illness and maintain overall workplace health.
The Cons
1. Financial Strain: For smaller businesses, the financial impact of providing sick pay can be significant.
2. Potential for Abuse: There’s always a risk that employees may take advantage of sick pay policies.
3. Burdening the Rest of the Team: Staff who enjoy good health and rarely take any time off may become resentful of staff who do not have such good health and, as a result, take more sick days, for which they are paid.
When weighing these factors, businesses must consider their financial capacity, workplace culture, and the value they place on employee well-being. They should also consider legal requirements, as UK employment law mandates certain provisions for sick pay.
How To Mitigate The Risks Of Occupational Sick Pay
1. Clear Policies: Establish clear guidelines on eligibility and procedures for claiming sick pay.
2. Absence Management: Robust absence management processes can negate risks such as frequent short-term absence and abuse of the scheme. Ensure you consistently apply the procedure to avoid claims of discrimination
3. Employee Education: Educate employees on the importance of the policy and the expectations around its use.
Get in touch if you would like to discuss the pros and cons of Occupational Sick pay for your business, and how to manage it.
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