Changes to company sickness policies require careful consideration, according to Peter Done, managing director of HR consultancy Peninsula. Companies must first assess whether their sickness policy is contractual or non-contractual, as this significantly influences the process for implementing changes.
For non-contractual policies that allow for amendments, employers can typically adjust the policy and inform employees without much resistance. However, if the policy is part of the contractual terms and conditions, changes must be mutually agreed upon. Unilateral modifications are not permissible unless legally mandated, as seen with regulations like the indoor smoking ban.
Employers should ensure compliance with relevant legal frameworks, including statutory sick pay, fit notes, The Employment Rights Act 2025, and The Equality Act 2010. A consultation process is crucial: all affected employees must be informed of proposed changes and their rationales, which can be communicated through a collective email or meeting. If a trade union represents employees, those representatives should also be consulted. Employees must be encouraged to share concerns and alternative suggestions.
If the proposed changes are perceived as beneficial, employees may agree to them after some consultation. However, should significant resistance persist, employers might consider terminating existing contracts and offering new ones with revised terms, although this carries legal risks and necessitates legal advice to avoid potential unfair dismissal claims.
As of April 2026, statutory sick pay updates will require employers to pay employees from the first day of illness rather than waiting until the fourth day, and the previous lower earnings limit will be abolished.
Why this story matters:
- Understanding the proper procedure for amending sickness policies ensures compliance with labor laws and protects against legal challenges.
Key takeaway:
- Employers must differentiate between contractual and non-contractual policies when considering changes, and adhere to a consultation process with employees.
Opposing viewpoint:
- Some may argue that changes to sickness policies could lead to employee dissatisfaction and resistance, complicating management processes.
