Managing Sickness Absence: Legal Guidance for Employers

In the current UK workplace landscape, managing sickness absence effectively is a critical responsibility for employers. With sickness absence levels rising, recent reports indicate UK employees lost an average of 9.4 days to sickness in 2025, up from previous years, businesses face increased costs, productivity challenges, and potential legal risks. The impending changes under the Employment Rights Act 2025 (effective from April 2026) will further reshape how employers handle statutory sick pay (SSP) and absence, making proactive management essential.

At Employment Law Services, we provide expert employment law advice and outsourced HR support to help UK employers navigate these complexities. This blog offers practical legal guidance for employers on managing sickness absence, ensuring compliance while supporting employee wellbeing and minimising risks such as unfair dismissal claims or discrimination under the Equality Act 2010.

The Current Landscape of Sickness Absence in the UK

Sickness absence remains a significant issue across sectors. According to CIPD’s Health and Wellbeing at Work report 2025, average absence reached nearly two full working weeks per employee annually, driven by factors like mental ill-health (a top cause of long-term absence), musculoskeletal issues, and short-term illnesses. In the NHS, rates hovered around 5.1–5.3% in 2025, highlighting broader trends in public and private sectors.

These absences cost employers dearly, through direct payments like SSP, lost output, and cover arrangements. Poor handling can escalate into disputes, with employees potentially claiming unfair dismissal, disability discrimination (if absence links to a protected condition), or breach of contract.

Key legal frameworks include:

Employment Rights Act 1996 (as amended)
Equality Act 2010
Statutory Sick Pay regulations

Employers must balance operational needs with duties of care, avoiding reactive approaches that could lead to tribunal claims.

Upcoming Changes: Employment Rights Act 2025 and SSP Reforms

From 6 April 2026, major reforms under the Employment Rights Act 2025 will transform sickness absence management:

Day-one SSP: Statutory sick pay becomes payable from the first day of absence, removing the current three waiting days.
Removal of the Lower Earnings Limit (LEL): All eligible employees qualify for SSP, regardless of earnings, extending coverage to around 1.3 million low-paid workers.
SSP rate increases (e.g., proposed rises to £123.25 per week in 2026/27).

These changes increase costs and compliance burdens, particularly for businesses with high short-term absence. Employers must update payroll systems, absence policies, and budgeting now to avoid penalties or disputes.

Additionally, the Act strengthens protections, potentially linking to reduced unfair dismissal qualifying periods (from two years to six months in 2027), making fair absence management procedures even more vital.

Legal Obligations When Managing Sickness Absence

UK employers have clear legal duties:

Pay Statutory Sick Pay (SSP): Currently £118.75 per week (from April 2025) for up to 28 weeks, for eligible employees off sick for four or more consecutive days. From 2026, this shifts to day-one access.
Maintain Accurate Records: Keep detailed absence records, including self-certificates (first seven days) and fit notes (thereafter).
Avoid Discrimination: Under the Equality Act 2010, treat disability-related absences carefully. Long-term conditions may qualify as disabilities, requiring reasonable adjustments (e.g., phased returns, flexible hours, or modified duties).
Follow Fair Procedures: For frequent or long-term absence, conduct return-to-work interviews, trigger points (e.g., Bradford Factor), and capability processes if absence persists.
Support Employee Health: Promote wellbeing through policies on mental health, occupational health referrals, and proactive interventions.

Failure to comply risks claims for unfair dismissal, constructive dismissal, or discrimination, costly in tribunals and reputational damage.

Best Practices for Effective Sickness Absence Management

Proactive strategies reduce absence levels and legal exposure:

Develop a Clear Sickness Absence Policy: Outline reporting procedures, notification requirements, self-certification, fit notes, and return-to-work processes. Communicate it via employee handbooks and training.
Implement Return-to-Work Meetings: Conduct supportive discussions after every absence to identify causes, offer help, and prevent recurrence. These build trust and flag issues early.
Use Trigger Points and Monitoring Tools: Systems like the Bradford Factor help identify patterns fairly. Combine with wellbeing checks rather than punitive measures.
Provide Occupational Health Support: Refer employees for professional assessments to advise on adjustments or prognosis. This demonstrates reasonableness in long-term cases.
Promote Employee Wellbeing: Invest in mental health training, EAPs (Employee Assistance Programmes), stress risk assessments, and flexible working to tackle root causes like anxiety or burnout.
Handle Long-Term Absence Carefully: For absences exceeding 4-12 weeks, engage in consultations, explore adjustments, and consider capability dismissal only as a last resort, following ACAS guidance for fairness.
Train Managers: Equip line managers with knowledge on sensitive conversations, legal risks, and consistent policy application.

HR outsourcing or consulting can provide scalable expertise, especially for SMEs lacking in-house resources. Outsourced HR ensures up-to-date compliance with evolving laws like the 2026 SSP changes.

Real-World Application

Consider a mid-sized firm experiencing rising short-term absences due to stress. By introducing wellbeing initiatives and manager training, they reduced absence by 25% within a year, avoiding potential claims.

In another scenario, a company faced a long-term absence linked to a disability. Through occupational health input and reasonable adjustments (phased return), they facilitated a successful return, demonstrating compliance and supportiveness.

These examples show how proactive, fair management protects against risks while boosting morale and retention.

Overcoming Common Challenges

Challenges include cost pressures from extended SSP, manager reluctance to address absence sensitively, or fears of discrimination claims. Solutions lie in clear policies, training, and external support like employment law services.

With 2026 reforms approaching, early preparation; reviewing policies, updating payroll, and budgeting for increased SSP, mitigates surprises.

Building a Supportive and Compliant Workplace

Managing sickness absence isn’t just about compliance, it’s about fostering a healthy, productive workforce. By adhering to legal guidance for employers, implementing best practices, and preparing for Employment Rights Act 2025 changes, businesses can reduce absence, lower costs, and minimise tribunal risks.

Employment Law Services offers tailored support, from policy reviews to outsourced HR and representation. Visit us to discover how our expertise can safeguard your organisation in this evolving landscape.

Prioritise proactive absence management today for a resilient tomorrow.