Understanding Sickness Absence Policies: Employer Practices and Trade Union Responses, Summaries of Business

Download Understanding Sickness Absence Policies: Employer Practices and Trade Union Responses and more Summaries Business in PDF only on Docsity! Sickness Absence Policies Executive Council Statement to the 2009 ADM Foreword page 1 Sickness Absence Policies In many workplaces there is no bigger issue after pay than sickness absence management. In recent years, a growing number of employers have adopted absence policies in an attempt to improve the attendance levels of the workforce. Employers have identified absence as a significant cost to the business. In the current difficult economic climate, employers will be looking at how they can cut costs to protect profits. More and more employers look at absence levels and see one cost to the business that can be tackled through absence management. It comes as no surprise that most employers have some form of absence management policy. Absence management is obviously here to stay. Usdaw is committed to ensuring that absence polices are fair and do not victimise employees who are off work sick. We do not want absence policies putting pressure on or punishing staff who are genuinely ill. A poor absence policy just looks at absence levels and prescribes action against an employee regardless of the individual circumstances. A fair absence policy supports staff back to work taking into consideration their illness. An absence policy may use trigger points for reviews. It may have rigorous return to work interviews. But a fair absence policy will allow and encourage managers to use discretion in dealing with employees who are suffering from ill-health. Usdaw is committed to providing good advice and representation for all members subject to absence management. We need to ensure that all Usdaw reps are trained and able to represent members over absence as members need individual advice and representation on sickness absence policies. Usdaw works at a national company level to ensure fair absence policies. At the same time, the Union represents members in the workplace to ensure they get a fair hearing and reasonable treatment over individual absence levels. Negotiating nationally and representing locally – these are the two parts of an effective Union approach to sickness absence management. John Hannett General Secretary page 5 ‘Nobody expects anyone to be at the office checking their emails the day after a heart bypass’ The CBI makes a distinction between short-term absence and longer periods off work for a more serious illness:  ‘Long term absence (20 days or more) also continued to be a serious concern’.  ‘Although only 5% of absence spells become long-term, they accounted for a massive 40% of all time lost’. Making a distinction between short-term and longer periods of illness is important but are employers more sympathetic to long-term sickness? In contrast to its statement about ‘dealing with bogus sick days’, the CBI talks about ‘helping those with long-term illness return to work’. Employers are advised that ‘those with long-term illnesses need time to recover – nobody expects anyone to be at the office checking their emails the day after a heart bypass’. Whether all employers put this commitment of supporting those with genuine long-term illness into practice remains to be seen. Summary Employers view sickness absence as a big cost to business that needs to be reduced. Many employers believe there is a bogus ‘sickie’ culture that needs to be tackled but employers organisations are signed up to supporting those who are genuinely off work sick. Section 2: Sickness Absence – the Real Facts page 6 Sickness Absence Policies The last section outlined the claims and assumptions made by employer organisations about absence levels. In this section, we look at the real facts about sickness absence in the UK workplace. The rise of a sick note culture? Many employers and newspapers make statements about a growing sick note culture. What are the facts? The most recent Workplace Employment Relations Survey (WERS) estimates that the average rate of absenteeism equates to the loss of 5% of working days per workplace. This shows little change from 1998 when the WERS survey found absence levels of 4.8%. Despite the headlines, absence levels are not rising and are roughly the same level as a number of years ago. Workplaces are not gripped by a culture of workers throwing a ‘sickie’ when they fancy an extra day off. Have absence management policies reduced absence levels? The Chartered Institute of Personnel and Development (CIPD) publish an annual survey that reports on the level of absence in the UK economy. In 2004 the CIPD found that absence was averaging at 9.1 days per employee. In the following years this went to 8.4 days in 2005, down to 8 days in 2006, back up to 8.4 days in 2007 and back down to 8 days in 2008. From this evidence it concludes, ‘The CIPD’s annual absence survey has been characterised by a ‘yo-yo’ effect in the overall level of absence since it started in 2000’. This yo-yo effect is interesting as the last five years have also seen an increase in absence management in UK workplaces. The expansion of absence management policies appears to have had little impact on absence levels. This would seem to suggest that most sickness absence is genuine as you would expect the number of bogus sick days to fall dramatically as a result of more intensive absence management. How do UK sickness absence levels compare to the rest of Europe? If the UK economy suffers from a sick note culture then we would expect to see UK absence at much higher levels than other similar countries. So, how do absence levels in the UK compare to the rest of Europe? ‘British workers are actually much less likely to take sick leave than workers in other European countries’. (TUC: Sick note Britain? – countering an urban legend). In Britain a lower proportion of working time is lost to short-term absence than any other European country except Denmark. Only Austria, Germany and Ireland lost a lower proportion of working time to long-term absence. When the UK is compared to similar economies it turns out that the UK worker is less likely to take sick leave. Even the CBI, despite its statements about the bogus ‘sickie’ culture, has admitted that it believes 88% of absence is genuine. The facts speak for themselves: workplaces in the UK are not gripped by a sick note culture, the vast majority of absence is genuine and absence levels are no higher than other comparable economies. page 7 Are workers turning up to work while ill? Employers often believe there is a problem of absenteeism, but there may be more of a problem with workers turning up to work while ill. The TUC has labelled this ‘presenteeism’. It is estimated that 75% of working adults have been to work when really they were too ill. In the same survey, one in three workers reported that they returned to work before they were fully recovered (TUC/BMRB survey, 2004). Research by AXA PPP Healthcare estimates that one in five employees across the economy have booked annual holiday entitlement to cover periods of illness. Workers reported that they feel compelled to turn up to work due to work pressure and because people depend on them. People do not want to let their colleagues down. Most employees take pride in their work and are worried that the job will not be covered or done as well if they are absent from work. Many commentators talk about absenteeism meaning they believe people call in sick with minor ailments when really if they were committed they would drag themselves into work. These commentators see absenteeism as a workforce discipline problem that needs to be tackled. The reality is that many employees feel under pressure to attend work even when they really are not fit for work. People turning up for work who are ill will spread germs to the rest of the workforce and can be a route to long-term absence. Summary The growth of absence management in the last five years has had little impact on absence levels suggesting that the vast majority of sickness absence is genuine. The levels of sickness absence in UK workplaces compares favourably with the rest of Europe. Instead of UK workplaces having a problem with absenteeism, there is a concern that workers are feeling under pressure to turn up for work when really they are too ill to do a productive day’s work. Section 4: Absence Policies – Case Studies page 10 Sickness Absence Policies This section looks at the absence management policies operating in some of the biggest companies that Usdaw members work for. These examples show us how the absence policies experienced by Usdaw members on a day-to-day basis are based on the most common absence management tools identified in the last section. The case studies illustrate how workers’ experiences of absence policies are similar across the economy. The one big difference is in the experience of workers employed by a company that refuses to recognise a trade union. In this section we see how the absence policy of a non- union employer (Marks & Spencer), is stricter in its application and harsher in its impact than the schemes operating in workplaces where Usdaw is recognised. Organising the workforce and getting union recognition will be the one thing that will have the biggest impact on how workers are treated under absence policies. Sainsbury’s All Sainsbury’s permanent employees with more than six months’ service and all temporary employees with more than 12 months’ service, are entitled to company sick pay which is normally equivalent to salary or basic wage. It does not include any store premium or market plusage payment. Sainsbury’s operates a sickness and absence procedure which has a key role for all Departmental Managers regularly reviewing absences. Following an absence, a return to work interview takes place. The return to work interview is based on sickness and/or unauthorised absence occurrences during the past 12 month rolling period. After the third absence it is possible for a disciplinary hearing to be considered appropriate. This may lead to a formal verbal warning. A fourth absence could lead to a formal written warning and a seventh absence may lead to dismissal. However, progression through the various stages is not automatic as each absence occurrence is treated on its merits. Where the return to work discussion or disciplinary hearing highlights special reasons for the absence a ‘No Action Taken’ decision should be made. Managers are told to handle long-term sickness absences in a sympathetic manner. Contact is to be maintained with the employee at regular intervals throughout the illness, either through phone calls or through visits. During all discussions with the employee throughout the period of illness, the company is committed to consulting with the individual to consider her/his view before any important decision is taken. Arrangements for a medical assessment are to be made after four/six weeks absence in order to determine the extent and likely duration of the medical condition and if treatment is needed, how soon it will take effect. page 11 Tesco Supporting your attendance policy Tesco’s attendance management policy is called supporting your attendance. Supporting your attendance is based on ‘triggers’ of 3% unplanned absence or three separate occasions of absence in a rolling 26 week period. All staff have a welcome back meeting on their return to work where their absence level is calculated. If it has reached either of the triggers then staff are invited to an attendance review investigation meeting to discuss their absence. If the triggers have not been reached then no further action is taken. The purpose of the attendance review investigation meeting is to address the root cause of an absence and identify any practical steps that either the company or the individual can take. The meeting has to be held within the seven days following an individual’s return to work and the individual is entitled to be represented by an Usdaw rep. The attendance review investigation meeting is not a disciplinary meeting. Rather, it considers the individual’s absence history and discusses the reasons for the latest absence and other absences over the 26 week period. The meeting considers whether there are any mitigating circumstances or other reasons that may lie behind an individual’s absence. Any absence that is covered as a ‘mitigating circumstance’ is automatically taken out of an individual’s absence percentage and no further action will be taken. There are three possible outcomes of an attendance review investigation meeting:  No further action – for example where absences have been found to be due to one of the ‘mitigating circumstances’.  Next steps – actions that can be taken by either the company or the individual to help improve attendance.  Arranging a disciplinary meeting. If the outcome is a disciplinary meeting the individual will have a further meeting after the attendance review investigation meeting. Again, the individual is entitled to be represented by an Usdaw rep and Usdaw reps are represented by their Area Organiser. If it is decided to take disciplinary action then the individual has the right of appeal as per the normal company disciplinary procedures. Other absence management policies Tesco retail staff who started with the company after 4 July 2004 do not get any sick pay for the first three days of illness however, staff who started with Tesco before this date get sick pay from day one. page 12 Sickness Absence Policies Marks & Spencer The Marks & Spencer Sickness Absence Scheme is based on periods of absence becoming building blocks to disciplinary action. Absences of eight shifts in 26 weeks triggers the first disciplinary; absences of six further shifts will trigger the second disciplinary. An employee does not have to be absent for a full shift for it to count as absence. It can be part of a shift. In respect of a part shift this can include the employee going home half an hour early due to illness. Absence does not count towards the trigger if Marks & Spencer send an employee home and/or to hospital. At the first trigger there is an informal discussion with the manager. A record of the discussion, however, remains on the employee’s record for the lifetime of the employment. The first trigger may also result in a written warning. The employee must inform the company on the day they are first absent; failure to do so may result in disciplinary action. This may include suspension. It also counts as a building block to the triggers. Some of the main features of the Marks & Spencer policy are:  Trigger one results from absence on eight shifts in a rolling 26 week period – this may result in a written warning, possibly a final written warning.  Trigger one also results in a fixed penalty being issued which withholds any cost of living payment or rise resulting from the salary review.  Informal discussions were removed from the new absence management policy.  Verbal warnings have been removed from the new absence management policy meaning the first stage of any action is a written warning.  If an employee goes home during a shift, regardless of how much of the shift they have worked, it counts as a period of absence.  If trigger one has been hit, an employee needs just six, rather than eight, absences/part absences, to start trigger two (also in a rolling 26 week period). Absence impact on pay Any employee with an ongoing disciplinary sanction at the time of the pay increase does not receive the pay increase until the following year and, therefore, receives last year’s pay rise at the same time as their colleagues receive this year’s pay rise. The bonus is not paid to staff if they are on a disciplinary sanction at the point the bonus is paid. They will only receive the bonus when the sanction has elapsed. page 15 Raising attendance levels through improving jobs and the workplace ‘Arguably the most effective way to manage sickness absence is to tackle the underlying causes. Many employers are now recognising the importance of good morale and motivation in creating a positive attendance culture. If employees are engaged in their work, perceive they are being fairly rewarded, see their company as a good place to work and believe they have some influence or control over their job, they are less likely to take time off’. (IDS HR Studies 842 – Absence Management). Trade unions play an important role in ensuring that workplaces are healthier, health risks are reduced and employees are better supported to attain maximum attendance: ‘Positive sickness absence policies, developed in partnership with unions can make positive inroads into reducing absenteeism, especially if combined with good preventive measures’. (TUC) The Department of Health came to the conclusion that ‘bad jobs may make people ill’. The ‘Choosing Health’ report published in 2004, highlighted ‘persuasive evidence’ that ‘a lack of job control, monotonous and repetitive work and an imbalance between effort and reward’ can lead to ill-health. If you make the job interesting, worthwhile, give people a say at work and reward them properly then they will turn up more often than other staff who feel disenchanted, disillusioned and underpaid. ‘If dissatisfaction with particular work issues such as poor job design, work overload, relationship conflict, ineffective management or bullying – is the real reason for the absence, it is vital that these are teased out and discussed with the employee’. (ACAS 2007) ‘A union friendly Britain would be a healthier Britain’. (TUC) Summary Absence management is here to stay and the trade union response is to work for fair absence policies that supports, and does not victimise, workers who are off work with short or long-term illness. Trade unions can play an essential role in promoting healthier workplaces and tackling some of the workplace issues that are resulting in sickness absence. Section 6: The Key Role of the Usdaw Rep page 16 Sickness Absence Policies This section looks at how Usdaw reps can play a key role in ensuring that members get the necessary advice and representation over absence management issues. The role of the Usdaw rep in representing members Workers have the right to be accompanied by a Union rep (or another work colleague) to any disciplinary hearing. The employee should inform the employer that they wish to be accompanied/represented. If the rep or companion is not available ACAS advises the worker to offer an alternative time and date which is reasonable and within five working days. While the worker has a right to be accompanied at a disciplinary meeting, no such right applies to the more informal return to work meetings. Sometimes it is unclear whether a meeting is a disciplinary hearing or a more informal review meeting. A disciplinary hearing is a meeting that could result in the issue of a formal warning. A Union rep accompanying a member to a disciplinary meeting has the right to address the meeting to put the worker’s case, sum up the case and respond on the member’s behalf to any view expressed at the hearing. However, she/he is not permitted to answer questions on behalf of the worker. The rep has the right to confer with the employee during the hearing and can also ask for adjournments to advise the member, although the employer is not legally obliged to agree to all requests for adjournment. For employees to get a fair hearing it is essential that they get union representation to check the facts, represent the member’s case in the best possible light and if necessary question and challenge the manager’s case. The Union rep needs to ask a few questions that will form the basis of the member’s case: Is the member above the absence levels that trigger the next stage of review? Nearly all absence policies have a formula whereby levels of absence trigger the next stage of review/action. It is always worthwhile to check the manager’s calculation and record of absences. It is surprising how often managers make simple mistakes in calculating the lengths and occasions of absence and wrongly trigger a formal review. Should any of the absences be excluded from the absence calculation? Absence policies should discount some absences from any absence calculations. For example, pregnancy-related sickness should be discounted or the employer could face the charge of sex discrimination if the company disciplines pregnant women for higher than average absence levels. Most companies have a list of absences that should be discounted. It is always worthwhile going through the absences with the member to check whether any absences should be discounted. This can make the difference between disciplinary action and no action. Has the correct procedure been followed? Many companies have a detailed sickness absence procedure. Has the manager followed the procedure? If they have not, the employer’s position to take action against the employee could be fundamentally weakened. Are there any special circumstances surrounding the member’s absences? No employee should be automatically disciplined because their levels of absence trigger a review. The manager should listen to and take into consideration any special circumstances surrounding absences. page 17 Every employee has their own story to tell. Each individual has an explanation for their absences. It is important to get the manager to listen to each individual special case. No case should be pre-judged. The employer has to listen and consider each case separately. Should the Union be protecting some people who are taking ‘sickies’? It is very easy to jump to conclusions about certain individuals without knowing the full story. Managers do this all the time! Regular absence from work is often linked to other problems, eg problems at work, childcare or transport difficulties, underlying serious medical condition, etc. The Usdaw rep can play an important role in getting to the bottom of an employee’s poor attendance record. A member will often tell the full story to a rep before they will explain it to a manager. Absence reviews will only lead to the right decision if all the factors are taken into consideration. The Usdaw rep plays a key role in ensuring members get their opportunity to put over their side of the story. A fair hearing depends on effective representation. Supporting members on long-term sick Representing and supporting an employee who is on long-term sick absence is a different challenge. ACAS advises employers that one of the key measures for dealing with long-term absence is to develop a ‘getting back to work’ programme. Long-term sickness raises a different set of issues. When will a return to work be possible? Would a phased return help the employee back to work? Could some redesign of the job speed up a return to work? Is there a requirement under the Disability Discrimination Act 1995 to make a reasonable adjustment? Summary Usdaw reps play an important role in protecting the interests of members who are subject to absence management. Employers need to recognise that reps have a right to play an active role in advising and representing members. The manager’s case needs to be scrutinised and, if necessary, challenged, and the Usdaw rep plays a key role in this process. Conclusion page 20 Sickness Absence Policies Employers see tackling sickness absence as a key priority as days lost through illness represent a cost to business and lost profits. Many employers believe there is a ‘sickie’ culture in workplaces with staff having time off when they are really well enough to go to work. Employers have identified absence management as a business priority. A closer look at the real facts surrounding employee absence shows there is no sick note culture in UK workplaces. The expansion and intensification of absence policies in workplaces has had little impact on absence levels, suggesting that the vast majority of absences are genuine. Workers in the UK are less likely to take time off sick than workers in nearly every other European country, disproving the myth that British workplaces suffer from a culture of absenteeism. Many employers are determined to have policies that will tackle absence levels. The most common absence management tools adopted by employers include: return to work interviews, absence levels triggering absence reviews, restricting sick pay and disciplinary procedures for unacceptable levels of attendance. A closer look at case studies of a few of the big retail companies shows that many employers use the same tools to manage absence. The real contrast is with non-union companies who often have much more stringent sickness absence management. Absence management is here to stay and the trade union response is to work for fair absence policies that ensure that those workers who are ill are not victimised, will get a full and fair hearing and will receive support as well as scrutiny from their employer. Usdaw reps play a key role in ensuring that members get a fair hearing over absence management. Reps are double-checking managers’ absence calculations, pushing for discretion to be exercised in individual cases and challenging harsh management decisions. Usdaw reps are also playing an important role in making the case for reasonable adjustments to be made for employees covered by the Disability Discrimination Act. In summary, the Union is committed to working at a company level for fair absence policies and representing at the level of the workplace to ensure members get a fair hearing. Usdaw officials and local reps working together are delivering a coherent joined-up trade union response to sickness absence management. Improving workers’ lives – Winning for members Usdaw, 188 Wilmslow Road Manchester M14 6LJ Printed on environmentally responsible paper. Published by Usdaw, 188 Wilmslow Road, Manchester M14 6LJ