The Employment Rights Act 2025 is going to be implemented over the next couple of years, with some changes as early as 01 April 2026.
I wrote a blog in July last year about how much sickness absence is costing employers in UK (read the blog here) and this cost is about to get much higher.
Changes to Statutory Sick Pay
One of the major changes which will affect every employer, but may have a huge financial impact on smaller employers, is that Statutory Sick Pay (SSP) rules change from 1st April this year.
For any employers who pay only Statutory Sick Pay to their employees, the first three days of sickness absence are unpaid and SSP is currently only payable from the fourth day of absence. Starting from 01 April this year, employers will have to pay Statutory Sick Pay from the very first day of sickness absence. This is likely to be a financial burden for employers, particularly smaller employers, and you need to add some leeway into your budgeting to allow for these additional costs.
Now would also be a good time to start planning how to manage sickness absence and employee wellbeing more effectively, to try and reduce some of the additional financial burden.
What is Employee Wellbeing?
Employee Wellbeing is one of those phrases which is often used by employers and HR professionals but doesn’t have a very clear definition. It can mean different things to different people – and there are a huge number of initiatives that an employer can put in place to try and improve the wellbeing of their employees. For smaller employers, it can all seem very complex, and a step too far. But the basic premise is that if your employees stay fit and healthy, then they are less likely to take time off sick. And, of course, there are an unlimited number of ways to approach this.
For me, employee wellbeing means creating a work environment that actively supports employees’ health, happiness, and ability to perform well. This encompasses a whole range of different aspects of working life: physical and mental health; emotional wellbeing; social interactions; financial wellbeing; a good balance between work and the rest of life. I could (and have) write blogs about any of these aspects.
How can a small employer improve Employee Wellbeing?
There are some things which you can look at for your business.
You could look at your job descriptions and staff workloads and do a skills audit. This can help you to move people into roles which suit their abilities and where they can thrive.
Your managers are key to ensuring the wellbeing of your staff and you need to make sure your managers are trained. So many managers are put into a management role because they are good at their job, but then they are left to work out for themselves how to manage the team. Some basic management training can make a huge difference.
Do you do stress risk assessments? These can help you to understand the issues which are potentially causing stress to your employees and to come up with a plan to reduce those pressures.
Other things you might look at include provision of an Employee Assistance Programme, or counselling services for your staff; wellbeing days or mental health leave; flexible working policies.
As always, my advice is to consult with your staff about what would work for them. You could maybe set up an Employee Wellbeing working group so that your employees can drive any wellbeing initiatives.
How can employers manage sickness absence?
There will always be a level of staff sickness absence – we all get ill from time to time. So how can this be kept at a manageable and “acceptable” level?
There are several things which it might be helpful for you to consider as these might help you to keep your sickness absence costs as low as possible. Things to think about include:
- A sickness absence policy – so your managers and your employees have a clear guide about all things related to sickness absence;
- Return to work interviews after any absence – so that any potential adjustments can be discussed; employees feel visible and cared for; any patterns of sickness – and the reasons for them – can be identified.
- Keeping sickness records and regularly analysing them – this can highlight if there are any specific types of work; locations, or people who might be a contributory factor to absence.
- Regular 121s or check-ins with managers – so managers can get to know their team members; understand the best way they work; understand any personal or health issues which might cause them to need time off, etc.
I wrote a blog in November 2024 about managing long term sickness and the basic principles don’t change. If you want some ideas on how to manage staff absence, then do read this blog.
In the meantime, if you are concerned about this, then please contact us for more advice.
