Employers fear sick pay rules will lead to a surge in absenteeism 

SMEs may cut back on contributions to healthcare, pensions, training, education and canteens to fund statutory sick pay

Barry Whelan, group CEO of Excel Recruitment, said employers are anticipating a rise in employee absenteeism will follow new statutory sick pay entitlements.

Employers are concerned that staff absenteeism will become increasingly disruptive as the new company-funded statutory sick pay cover climbs from three days in 2023 to ten days in 2026.

With the Sick Leave Act 2022 effective since January, owner-managers in SMEs are already reviewing possible cuts to their contributions to employee healthcare and pension schemes, as well as investing less in staff training, education and even on-the-job perks like free or subsidised canteen food.