Managing Sickness Absence

CBI statistics suggest that long term sickness absence costs UK businesses over £3.8 billion per
year and accounts for 33% of working days lost due to sickness. Failure to manage sickness
absence can have significant effects on the health and well-being of employees as well as the
effects on business productivity and competitiveness. There is also clear evidence to the effect that
employees are less likely to return to work the longer an absence is left unmanaged. In the civil
claims arena, unmanaged long term absence due to work related illness or injury can lead to very
large claim settlements. Typical claims arise from cumulative musculoskeletal disorders and after
episodes of stress related absence, often co-inciding with grievance procedures.

BEST PRACTISE STANDARDS

1. A systematic approach is taken to dealing with sickness absence. A statement of intent, policy
document, or set of guidelines outlines the organisation's approach to sickness absence, the
return to work process, and individual responsibilities. This is distinctly separate from
disciplinary processes. The overarching intention is to facilitate early intervention leading to a
successful return to work.
2. Sickness absence is recorded, and trends analysed, monitored and benchmarked (similar to
accident data) such that patterns of long term absence, frequent absence, and patterns of ill-
health can be identified and appropriate interventions sought.
3. Protocols are in place to contact absent employees at various timescales depending on the
type of absence recorded. Discretion is used where genuine reasons are observed. Return to
work interviews are handled sensitively and utilised to identify remaining health issues, and to
identify any required work adjustments.
4. Where necessary, efforts are made to enable the employee to continue working by making
reasonable workplace adjustments, re-deployment to an alternative job, or agreeing a phased
or gradual return to work via a 'return to work plan' within an agreed timescale. The Disability
Discrimination Act 1995 contains certain legal requirements.
5. Risk assessments are reviewed and amended where necessary e.g. if there has been a
significant change to the employee through injury, ill-health or disability. This will also be the
case if adjustments are to be made to the workplace affecting others.
6. You and your employees have access to professional advice, support & treatment, in
facilitating the return to work process. This may be via access to occupational health services,
or sources such as NHS plus and schemes such as 'Access to Work'.
7. Insurers are contacted where they offer rehabilitation services as part of their EL Insurance
policies, normally where absence is work related and liability may attach.
8. A co-ordinator or independent case manager for complex cases is appointed, or available to
manage and co-ordinate the return to work process, acting as a central contact for the claimant
and line managers/work departments.

LEGAL REQUIREMENTS
There are no specific legal requirements to manage sickness absence. Disabled employees are
protected by the Disability Discrimination Act 1995 requiring employees to make reasonable
adjustments to ensure they are not treated less favourably than other employees. There are
employment law responsibilities under the Employment Rights Act 1996 and Employment Act 2002
when considering dismissals and retirements due to ill health. There will also be contract of
employment obligations to consider on both sides.

GUIDANCE & USEFUL INFORMATION

• HSE Website 'sickness absence' pages: www.hse.gov.uk/sicknessabsence/index/htm
• HSE, Managing sickness absence and return to work in small businesses, INDG399 2004

For further information contact RM@UK.qbe.com

 Dear reader
Thank you for taking the trouble to read this publication.
QBE Risk Management believe that best practice organisations are those where senior individuals
facilitate and engage in the processes of sensible risk management. We make this document available to
all interest parties in an effort to share knowledge and promote good practise.
Our services are available only to clients insured by QBE in Europe. Our insurance products are sold
through insurance brokers. We cannot offer advisory services to anyone else, however we would be
delighted to hear if you have found this document useful or believe there are risk management issues that
do not receive appropriate attention in the media.
Regards
QBE Risk Management Team
email: RM@uk.qbe.com
www.QBEeurope.com/RM

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