Sickness Policy Essentials: What Every Business Needs to Know

Life does not always go according to plan, and sometimes, extended time off work is needed to tackle health issues. Creating a sickness policy ensures your team feels informed and supported, knowing their rights and procedures during challenging times. 

In this article, we’ll give you all the advice you need for creating and implementing a stellar sickness absence policy. Let’s get started. 

What is a Sickness Policy?

A sickness policy is a set of guidelines outlining how a business manages employee absences due to illness. It helps define what steps an employee should take when requesting sick leave, explains the company’s benefit policies, including sick pay entitlements and support services, and explores both the employee and employer’s mutual responsibilities during the leave.  

Tips for Creating and Implementing an Effective Sickness Policy

Set clear reporting procedures for absences

First and most important, employees need to know how to let management know they’re unwell and need time off. Include all the steps in this procedure, including who they should notify, how they should contact them, and how early they need to inform the team. Laying out these steps clearly ensures minimal disruptions and sets expectations. 

Outline what kind of documentation might be needed in order to approve sick leave. For short-term absences, companies often have a trust-based policy, but for longer absences, they might require a doctor’s note, especially when insurance is involved. Define when documentation is required and how it should be submitted. 

Define sick leave benefits and eligibility in your company policy

Employees need to know exactly what they’re entitled to so they feel that their finances and jobs are secure when requesting time off. 

It’s important to explain how many paid sick days they’re entitled to each year. They also need to know their allowance for unpaid sick days, like the Family and Medical Leave Act (FMLA), for example. If you offer private insurance, be sure they have access to details about extended leave benefits.  

Also, explain who is eligible for these benefits. For example, some companies only offer paid sick days to full-time employees, not part-timers or contractors. Consider addressing whether new employees have a waiting period before becoming eligible for paid sick leave. 

Manage long-term or repeated absences with professionalism

Businesses rely on their employees to help them thrive and keep operations running smoothly. So, when they’re not there, it can get frustrating. However, it’s important to remain professional, be a support to your team, and not judge.  

When dealing with repeated absences, managers should check in on their employees and make sure they are alright. If they’re struggling with a chronic condition, mental health, or any challenges in their personal life, you may want to direct them to services your company offers, like counselling, to encourage a smooth return to work. 

Establish policies to regulate how long-term absences are handled. Define what kind of documentation your staff needs and what kind of communication is expected. Treat employees with respect and demonstrate support for their eventual return to the workplace. 

Conduct return-to-work interviews

After an employee has been gone for an extended period, a return-to-work interview is often recommended. This gives HR and management a chance to welcome the employee back, confirm they’re in the right state to resume work and provide any needed support.

The purpose of the interview is to establish what sparked their absence and if anything could’ve been done to avoid it. More importantly, this is an opportunity to check if they need any accommodations to re-enter the workplace comfortably.

Help the employee by providing them with a plan to slowly ease them back into work and update them on any changes they might have missed.  

Return-to-work interviews are a great way to limit the number of long-term leaves, by better understanding the root cause, but more importantly, they ensure that your team is doing well and equipped to be at their best. 

Maintain employee privacy and confidentiality

Sickness absences are no joke. They’re a very challenging time in your employee’s life when they are likely battling some serious health concerns Respecting privacy during this time reassures employees and avoids any unnecessary discomfort. 

Make it known that any and all of the information employees share with HR and management will always remain confidential. Employees will feel more comfortable sharing their struggles with management and requesting accommodation in order to be their best at work. 

Vacation Tracker makes it easy to enforce confidentiality with the ability to hide leave types. The whole team doesn’t need to know that Mary is away on extended sick leave, instead it just shows that she’s away. This helps prevent office gossip or employee embarrassment.  

Create a positive work environment to prevent burnout 

Sickness absence treats the disease, but a positive work environment prevents it. 

Over half of employees (57%) report negative effects from work-related stress, including emotional exhaustion, reduced motivation, isolation, and lower productivity, all of which contribute to workplace burnout. 

By creating a healthy and supportive work environment that encourages taking breaks, using PTO, and disconnecting after work hours, you’ll build an engaged and motivated workforce and less likely to burn out and require sickness leave. 

Include flexible work policies to reduce absenteeism 

Provide your team with greater work-life balance by allowing them to work flexible hours or even from home. By giving employees more control over their schedules, you're reducing major stressors, like being late to work or unable to make it to the office, which can contribute to burnout or illness. 

For instance, parents can make time to pick up their children from school or bring them to the dentist without submitting a formal request and anxiously awaiting approval. This also reduces absenteeism, as they can fit these obligations into their day rather than take time off.   

By offering flexibility, employees can make space for both their personal and professional lives, making them feel respected and understood by their employer. This fosters a positive work environment where employees are more engaged, productive, and present. 

Provide training to managers

Having a written policy is great, but it’s not worth the effort if it’s not implemented properly. Train your management team on how to adhere to and enforce, the details outlined in your sickness policy. If the policy is updated and reviewed, the changes need to be communicated to them to keep everyone aligned.  

Regularly review and update your sickness policy

A sickness absence policy is not something you can create and forget about. It’s a living document that needs to be maintained. Laws change, and companies’ needs evolve; Take the time to make sure your policy reflects that through regular reviews and revisions.  

Sickness Policy Compliance and Legal Considerations

Compliance with local laws and regulations

Navigating local laws and regulations is a must for any business implementing a sickness absence policy, as requirements for various types of leave vary. Every region has unique rules on sick leave—some require paid days off, others mandate only unpaid leave, and a few have specific guidelines for short- and long-term absences.  

Staying up-to-date with these regulations protects both your employees’ rights and your business from any legal gray areas. Make it clear in your policy what’s covered and keep everyone on the same page. Compliance isn’t just about following the law; it’s about fostering trust and transparency in your team. 

Adapting to meet health and safety standards

Adapting your sickness policy to meet evolving health and safety standards demonstrates a proactive commitment to employee welfare. Addressing things like remote work options during contagious illness outbreaks, supporting gradual return-to-work plans, and adapting roles to suit health needs are vital steps.  

By embedding health and safety best practices in your policy, you’re showing employees you care about their well-being and creating a resilient, supportive work environment. Make sure your policy isn’t just a document but a tool for health, safety, and genuine support. 

Why a Strong Sickness and Absence Policy is Key to Business Success

A well-defined sickness and absence policy helps build a supportive work environment where employees feel valued and secure. By setting clear expectations and fostering a positive workplace culture, you reduce turnover, maintain productivity, and build trust within your team. 

Not sure where to start? We've created a free leave policy template providing you with the framework needed to create a comprehensive, compliant policy. 

Writing out your policy is only half the battle. Manage time off efficiently with Vacation Tracker. Our easy-to-use tool helps you streamline leave requests, ensure confidentiality, and promote transparency for a successful and satisfied team.  

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Frequently Asked Questions about Sickness Policies

Is it mandatory to have a sickness policy?

Maybe! It depends on where your business operates. Sickness leave policies around the world can differ greatly, with The Netherlands offering 2 years at 70% of the salary and the US offering nothing.  

Explore our leave laws for detailed and up-to-date information about requirements in your country. 

Can our policy require a physician's note?

Yes! Most countries require formal documentation from a doctor to approve the leave and ensure that the employee is paid.  

However, for short-term leaves, it’s trickier. While before, it was more common to use the honor system, some regions are starting to create legislation prohibiting companies from asking for a doctor’s note for short-term absences. Your policy should clarify these distinctions, helping employees understand when documentation may be required. 

Is it required to pay for sick leave?

No, in fact, not all sick leave is paid. For example, under the Family and Medical Leave Act (FMLA), employees are entitled to unpaid, job-protected leave, allowing them time off without risking their position. However, some companies go beyond this by offering paid sick leave to support employees financially during health-related absences. 

How many days of sick leave before disciplinary action?

There’s no specific number of days that trigger disciplinary action. As long as the employee can support the need for the time off with a medical note confirming they’re unfit to work, it shouldn’t be an issue.  

The problems tend to arrive when there are multiple unplanned absences or an inability to provide proof of illness when requested. The Bradford Score is a great way to assess the impact of your team’s absences and determine trigger points for disciplinary action. Set expectations properly by explaining any trigger points in your sickness absence policy and the process of warning teams leading to this trigger point. 

How often should a sickness policy be reviewed and updated?

You should review your sickness policy each year, at a minimum. Use data from your leave management system to identify trends with your teams' absences and see if there’s anything that needs to be modified in your policy or procedures. Sickness policies also need to be updated any time the laws change. It’s essential to stay informed and be aware of your obligations as an employer.