This month’s article provides a timely reminder of the importance of managing absence in the Workplace. It follows on from our recent successful Absence Management Workshop, and in light of the legislative changes relating to SSP which come into force on April 6th, 2026.
Workplace Absence FAQ’s
Q1) Reminder of April 2026 Changes
Indeed there has been much media and legislative coverage regarding approaching employment law changes. Some of the first to take effect relate to Statutory Sick Pay (SSP) under The Employment Rights Act 2025, which are effective from April 2026, including in Northern Ireland. Understanding these changes will be critical for employers to meet their obligations in this area.
Firstly lets revisit the current SSP Rules up to 5 April 2026:
- To be eligible for Statutory Sick Pay an individual must be classed as an eligible employee and must have average weekly earnings at or above the Lower Earnings Limit (LEL) of £125 per week in 2025-26.
- Those who are eligible are only paid from their fourth working day of sickness absence.
Below are the changes effective 6 April 2026 onwards:
- The lower earnings limit (LEL) for eligibility will be abolished meaning all employees will qualify for SSP, regardless of earnings.
- SSP will be calculated as 80% of an employee’s average weekly earnings (AWE) or the current flat rate (£123.25 for 2026/27), whichever is lower.
- Waiting days will be eliminated, enabling eligible employees to receive SSP from the first full day of sickness absence.
Q2) Key Tips for Implementing April 2026 Changes
Operationally speaking, these changes are expected to increase both the number of employees eligible for SSP and the speed at which payments begin. This is anticipated to potentially impact patterns of short-term absence and place administrative pressure on payroll processors.
From a financial and legislative perspective, absence management procedures which are not timely, consistent and based on accurate information may lead to unexpected costs, and errors in processing may lead to costly sanctions.
As such if not already prepared, it is an opportune time for organisations to;
- Consider live cases of continuous absence cases as of 6 April 2026 to ensure appropriate treatment.
- Review sickness policies and procedures to bring eligibility and payment information up to date. Audit employment contracts and handbooks for relevant references that may need to be updated.
- Update payroll systems to reflect the new two-tier payment (flat rate versus 80% of Ave. Weekly Earnings)
- Train line managers to ensure awareness of new rules and to support them in handling cases and questions.
- Communicate with staff to inform them of updates to policies etc. setting out changes to entitlement.
- Reassess budgets to account for increased SSP liabilities, particularly for short-term absences and for the inclusion of those previously ineligible.
- Promote robust absence management practices and ensure positive work culture to maximise employee engagement and attendance.
Q3) The Key Arguments for good absence management
The cost of employee absence in the UK is significant, with estimates indicating that the total cost to employers is around £103 billion annually. This figure includes both direct and indirect costs, such as lost productivity and the need for staff to cover for absent employees.
Direct costs include sick pay and lost wages for employees who are unable to work due to illness.
Indirect costs involve the financial impact on productivity, recruitment, and training, which can be estimated at 2% to 16% of an organisation’s annual salary bill.
For small businesses, the cost of absenteeism can be approximately £547 per employee annually, while larger companies may face costs of around £702 per person per year. (Gov.uk)
Overall, the financial burden of employee absence is substantial, affecting not only the bottom line, but also the overall productivity and morale of the workforce.
Whilst the financial impact is evident, there are wider organisational benefits of proactive absence management.
Proactive management of sickness absence through early conversations, support, and adjustments can significantly reduce the duration and frequency of absence episodes, and promote a positive and open workplace culture.
Other Organisational Benefits include; Improved productivity and service delivery, Enhanced employee morale and retention, Lower risk of legal claims and reputational damage.
Studies also show that organisations investing in early intervention and wellbeing programs see measurable reductions in absence rates and associated costs.
Q4) How to Avoid Common Pitfalls
Recognising and avoiding common mistakes in managing absences can make all the difference when it comes to achieving positive outcomes. Examples of Common Pitfalls include;
- A Failure to Follow Policy: Not adhering to your organisation’s absence management policy can lead to inconsistency, legal risk, and employee mistrust. Policies exist to ensure fairness and compliance- skipping steps undermines both.
- Poor Recordkeeping: Inadequate documentation of meetings, decisions, and actions makes it difficult to demonstrate compliance and defend against claims. Accurate records provide transparency and accountability.
- An Inconsistent Approach: Applying rules differently across employees creates perceptions of bias and can result in discrimination claims. Consistency is key to fairness and legal compliance.
- Jumping to Conclusions: Assuming reasons for absence without evidence can damage trust and lead to incorrect decisions. Always seek medical advice or Occupational Health input before acting.
- Ignoring Disability-Related Absence: Failing to recognise when absence is linked to a disability breaches legal obligations under the Disability Discrimination Act 1995. Employers must consider reasonable adjustments before any formal action is taken.
- Lack of Communication: Poor communication with employees during absence can cause anxiety, disengagement, and longer absences. Regular, supportive contact helps maintain trust and encourages return to work.
- Ineffective Administrative Processes: Delays in referrals, paperwork, or approvals slow down recovery and return-to-work planning. Streamlined processes ensure timely support and compliance.
- Delaying Action: Waiting too long to address absence issues can lead to prolonged absences and operational disruption. Early intervention reduces costs and improves outcomes.
Q5) Top Tips for Managing Absence
Remember, managing absence is not just about compliance- it’s about creating a fair, supportive, and productive workplace. As a manager, your role is critical in:
- Acting Early: Proactive conversations and timely interventions reduce absence and improve wellbeing.
- Applying Policy Consistently: Fairness and transparency protect both employees and the organisation.
- Collaborating Effectively: Work closely with HR and Occupational Health to make informed decisions.
- Supporting Mental Health & Disability: Recognise signs, make reasonable adjustments, and follow legal obligations.
- Documenting & Communicating: Accurate records and open dialogue build trust and ensure compliance.
- Building a Positive Culture: Promote wellbeing, flexibility, and engagement to prevent absence and presenteeism/burnout.
People Management Solutions can provide advice and support to assist in proactively managing absence within your organisation. If you have any queries regarding workplace absences, or require any assistance in this area, please do reach out to us.
