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Managing Sickness Absence: Legal Duties and Best Practice for Employers

October 30, 2025 | By: Eunique Headley

Sickness absence is an inevitable part of working life. However, without clear procedures and fair management, it can lead to operational disruption, reduced morale, and potential legal risks.


Managing sickness absence well is about finding the right balance supporting employees back to health while ensuring your organisation remains compliant and productive.

This article outlines the key legal principles, practical steps, and best practices every employer should follow when handling both short-term and long-term sickness absence.

1. Why Sickness Absence Management Matters

An effective sickness absence policy helps to:

  • Ensure fairness and consistency across the workforce.
  • Protect employee wellbeing and encourage early intervention.
  • Reduce disruption to productivity and workplace morale.
  • Demonstrate compliance with employment and equality legislation.

A well-managed process also supports the employer’s defence against claims for unfair dismissal, disability discrimination, or breach of contract, ensuring that decisions are made based on objective medical evidence and fair procedures.

2. Legal Framework: Understanding Employer Obligations

Under Section 1 of the Employment Rights Act 1996, all employees must receive written particulars of any terms relating to incapacity for work, including sick pay entitlement. This can be contained in the contract of employment or an employee handbook.

In addition:

  • The Equality Act 2010 requires employers to avoid discrimination arising from disability and to make reasonable adjustments for disabled employees.
  • The UK GDPR and Data Protection Act 2018 impose strict duties when handling health information, which is classed as special category data.
  • The Employment Relations Act 1999 gives employees the right to be accompanied at meetings that may result in disciplinary action or dismissal.
  • The Statutory Sick Pay (SSP) Regulations govern entitlement to minimum sick pay for eligible employees.

Failure to follow these legal requirements can result in employment tribunal claims and reputational damage.

3. Developing a Clear and Fair Sickness Absence Policy

Every employer should have a sickness absence policy that clearly explains:

  • How and when employees should report sickness absence.
  • When medical evidence (self-certification or fit notes) must be provided.
  • How pay and benefits are handled during absence.
  • The process for maintaining contact with absent employees.
  • The approach to short-term and long-term absence.
  • Procedures for return-to-work meetings and adjustments.

Having a written policy ensures employees understand what is expected of them and gives managers a consistent framework for decision-making. It also provides valuable evidence if a dispute arises.

4. Short-Term Absence: Monitoring and Support

Short, frequent absences for example, one or two days of illness can quickly accumulate and disrupt workflow. Employers should:

  • Record and monitor absence data to identify patterns or trends.
  • Conduct return-to-work interviews after each episode to discuss the cause, confirm the employee’s fitness to return, and explore any underlying issues.
  • Offer support or reasonable adjustments if health issues are recurring.
  • Set clear expectations where attendance levels are unsatisfactory, using formal review procedures if necessary.

Return-to-work meetings are one of the most effective tools for reducing short-term absence. They show that the employer takes attendance seriously but also values employee welfare.

5. Long-Term Absence: A Structured and Compassionate Approach

For longer absences typically those lasting four weeks or more employers must act with both sensitivity and structure.

Key steps include:

  1. Maintaining regular contact — typically every few weeks, unless otherwise agreed with the employee.
  2. Obtaining medical evidence — through GP fit notes or, where appropriate, an independent occupational health assessment.
  3. Considering reasonable adjustments — such as reduced hours, modified duties, or phased returns.
  4. Exploring alternative roles — if the employee is unable to return to their previous position.
  5. Holding formal review meetings — to discuss progress, prognosis, and next steps.

A dismissal for long-term incapacity should only ever be a last resort and only after consultation, medical investigation, and a fair procedure.

6. Fit Notes and Medical Evidence

Since 2022, a wider range of healthcare professionals — including nurses, occupational therapists, pharmacists, and physiotherapists — can issue fit notes (formerly “sick notes”).
These can state either:

  • The employee is not fit for work, or
  • The employee may be fit for work with certain adjustments (e.g., amended duties, flexible hours, or workplace adaptations).

Employers should review fit notes carefully and discuss any suggested adjustments with the employee. If adjustments are not feasible, the fit note should be treated as stating the employee is not fit for work.

In cases of doubt, employers may request a medical report or occupational health referral — but must comply with the Access to Medical Reports Act 1988 and obtain the employee’s consent.

7. Data Protection and Confidentiality

Health information must be:

  • Collected only for legitimate purposes (e.g., absence management).
  • Stored securely, with access restricted to authorised personnel.
  • Kept separate from general HR files where possible.
  • Retained only as long as necessary.

The Information Commissioner’s Office (ICO) advises employers to document lawful bases for processing health data, provide clear privacy notices, and ensure managers are trained on confidentiality obligations.

8. Conduct During Sick Leave

Being on sick leave does not remove an employee’s contractual obligations. However, employers should avoid making assumptions about what an employee can or cannot do while unwell.
For example, attending a social event or travelling abroad while on sick leave may not necessarily indicate dishonesty particularly where recovery activities are encouraged for mental health or stress-related illnesses.

If there is evidence that an employee has abused sick leave (for instance, by working elsewhere or falsifying illness), this should be investigated in line with the Acas Code of Practice before any disciplinary action is taken.

9. Rehabilitation and Return to Work

Supporting a successful return to work benefits both the employee and the organisation.
Best practice includes:

  • Conducting a return-to-work interview before or shortly after the employee’s return.
  • Agreeing a phased return or temporary adjustments.
  • Reviewing progress regularly.
  • Providing access to counselling, occupational health, or wellbeing programmes.

10. When Dismissal Becomes Inevitable

Where medical evidence indicates that an employee is unlikely to return in the foreseeable future, or that no reasonable adjustments can enable their return, dismissal may be justified on grounds of capability.
However, the process must be fair. Employers should:

  • Obtain and consider up-to-date medical evidence.
  • Consult with the employee before making any decision.
  • Explore all alternatives, including redeployment or ill-health retirement.
  • Provide the employee with the right to be accompanied and to appeal.

Even at this stage, compassion and communication are key. A well-handled process reduces risk and maintains the employer’s reputation for fairness.

11. Looking Ahead: Policy Developments

Government initiatives such as the “Keep Britain Working” review and the WorkWell pilot programme are exploring how employers can better support individuals with health conditions to stay in or return to work.
Future reforms may expand employer responsibilities around occupational health and workplace adjustments making proactive sickness management not only best practice, but a core part of compliance.

Conclusion

Managing sickness absence effectively requires a blend of empathy, consistency, and legal awareness.
By adopting a clear policy, engaging with employees constructively, and following fair procedures, employers can:

  • Reduce absenteeism,
  • Support long-term employee health, and
  • Protect their organisation from legal and reputational risk.

A proactive, people-focused approach turns absence management into an opportunity to build a healthier, more resilient workplace.

Need Support?

If you need further guidance on lighting at work, please feel free to contact our dedicated advice line on 033 33 215 005 or email info@wirehouse-es.com.

About the Author
Eunique Headley
Eunique Headley
Eunique Headley, Author at Wirehouse Employer Services

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