How to stop your company Sickness at work scheme being abused
- Author John Rees
- Published May 5, 2026
- Word count 419
Implementing an Occupational Sickness at Work scheme is a standard practice for most employers, serving as a crucial component of employee benefits that aids in both recruitment and retention. The primary objective is to support genuinely ill employees while simultaneously mitigating potential misuse of the system. It's an undeniable reality that sickness absence can be exploited, often by a small subset of employees.
While sickness is a natural and unavoidable aspect of life, and occasional absences are to be expected and managed by businesses, there are strategies to address instances of abuse within your Sickness at Work process.
Here are some effective approaches:
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Reduced Initial Payment: Consider offering a reduced pay rate for the initial days of absence, typically between 50% and 75% of the regular salary. Ensure this aligns with national Statutory Sick Pay regulations, as some countries permit no payment for the first few days.
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Probationary Period for Sickness Schemes: Introduce a waiting period, potentially six to twelve months, before new employees become eligible for your Occupational Sickness at Work scheme.
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Sick Note Requirement: Mandate that employees provide a doctor's certificate for absences exceeding two days. If there's a cost associated with obtaining the note, reimburse the employee through your expense process. This measure can deter those who are not genuinely ill, as the effort and potential cost involved may prove unappealing.
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Positive Reinforcement for Attendance: Implement a system that rewards good attendance. This could involve offering additional holiday days or other incentives. Ensure any rewards are meaningful and that the system does not inadvertently discriminate against individuals with disabilities.
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"Phone in Not-Sick" Option: Acknowledge that most individuals have occasional days where they feel unwell but not genuinely sick. Some employees may "phone in sick" under these circumstances, knowing they are being untruthful. The dishonesty is often more detrimental than the absence itself. Consider allowing employees one or two "phone in not-sick" days annually. This fosters honesty and provides early insight into potential personal, domestic, or work-related issues. Employees must still notify you of their absence, and these days would typically be ineligible for good attendance rewards.
When establishing a new sickness scheme, incorporate these ideas. If you are revising an existing policy, transparently communicate the changes to your employees. A recommended approach is to inform them via individual letters detailing the planned modifications, followed by another letter outlining the updated terms and conditions of employment. Crucially, update your absence policy accordingly. If an Absence Policy is not yet in place, a free template can be downloaded from us.
John Rees has been developing HR Systems for 25 years.
Behind every business is a reality not often talked about - HR chaos. In the early days, managing employees is simple. Some spreadsheets and email threads, maybe a shared folder. You know everyone personally. Processes are informal, flexible, and fast. But then growth happens. If you are struggling with policies, contracts, and processes compliance then HRCompleteManager is a system designed for you.
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