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As we enter peak flu season, more companies are grappling with questions about sick leave. But is there a ‘right’ amount of statutory sick pay? And how much is too much?
If you’ve entered the new year with a blocked nose, you’re not alone. It feels like the morning commute has been peppered with coughs and sneezes for the past week. A trip to the shops transformed into a minefield of germs fit with reflexive hand-to-face protection strategies.
As more of us call in sick, many workplaces are having to grapple with the question of sick pay. Namely whether there is a ‘perfect’ amount of statutory sick pay, how it should be paid, and where to draw the line when it comes to ‘too much’.
The Financial Times recently highlighted a comment by former prime minister Boris Johnson, in which he suggested Brits should be ‘more like Germans’ when it came to illness: ‘We have a habit of going back to work or going into work when we’re not well,’ he complained.
But experts were quick to point out the reasoning for this premature return to the office: the UK’s sick pay policy pales in comparison to that of countries like Germany.
Statutory sick pay in the UK hasn’t changed much in the two years since. It currently only covers workers with a flat fee of £116.75 per week, which is 16% of full-time median weekly earnings. Unless your company has its own discretionary policy, you also won’t receive any pay for the first three days you’re sick.
To put that into perspective, Germans will receive 100% of their full-time salary for up to six weeks of sick leave.
The FT’s article has since raised discussions around sick pay, largely surrounding the question of a ‘perfect’ solution. While Germany’s strategy is no doubt generous, it has come with its own set of issues, including record sick leave rates nationwide.
As Jennifer Ryan points out, this has triggered calls to amend the system, including a statement by Allianz CEO Oliver Bäte that demands for sick pay to be cut on an employees’ first day off.
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On the other hand, health insurer DAK has warned against fostering a ‘culture of mistrust’ in German workplaces, suggesting that rising absences are due to COVID-19, record rates of cold and flu, and electric reporting, rather than employee skiving.
So, how much is too much? And is there a way to balance the stringent British system with the generous German approach?
Well, it’s a complex issue. Not least because the correlation between absence and sick pay isn’t always clear cut. While generous sick pay allowances see higher absences in Germany, the financial cost to sick leave in countries like Britain incentivises a premature return to the office.
But Australia, for example, has one of the lowest employee absence rates worldwide, despite offering 100% sick pay for two weeks.
One thing most people can agree on, however, is that a lack of sick pay in the initial days of illness is unfair for those who feel unwell. It’s rare that we take more than two consecutive days off of work for common ailments like the cold or flu, so these first 48 hours are when statutory sick pay is most vital.
Without that safety net, workers are more likely to come into the office despite contagious symptoms, leading to a spike in sickness across the country.
The Labour government has recently faced renewed pressure from workers unions to revise the sick pay policy in Britain.
According to the BBC, a total of 24 union leaders have written to the prime minister, concerned that Labour’s commitments to ‘strengthen’ sick pay have not been carried through.
While the Employment Rights Bill is set to extend sick pay eligibility so that it begins on the first day of illness, unions are concerned that the larger issue is the amount of pay itself.
‘Forcing nursing staff to choose between going to work unwell or struggling to make ends meet if they take leave is not only unfair but a risk to patients too,’ said Professor Nicola Ranger, cheif executive of the Royal College of Nursing.
‘People will only receive £3 an hour when they are off sick.’
But small businesses are fighting an opposing battle. Many have raised concerns that extending sick leave to begin on the first day of illness will place pressure on employers and lead to spikes in absence, calling for the government to provide sick pay rebates.
Policy chair for The Federation of Small Businesses, Tina McKenzie, said she was worried about the reforms, stating ‘we’ve raised significant concerns that the real impact, particularly on small employers, will act as a brake on job creation and have a smothering effect on affordable wage rises over the coming years.’
Ultimately, the quest for the ‘perfect’ level of sick pay might be more akin to finding the perfect thermostat setting – someone’s always too hot, someone else is too cold, and no one can agree on the sweet spot.
But leaving workers without financial support when they’re unwell only spreads misery, and germs.
Balancing fairness with pragmatism might not be easy, but neither is working through a fever. And when the cost of staying at home outweighs the cost of showing up sick, everyone pays the price.
