Seven million workers to get sick pay from the first day under ‘once-in-a-generation’ overhaul of workers’ rights
Workers will be given rights to claim sick pay from their first day on the job under new laws.
The Government is expected to give more than seven million people the entitlement under changes to be unveiled on Thursday.
At present, most people are not allowed to claim sick pay until the fourth day of their illness.
Labour will announce what it calls a ‘once-in-a-generation’ overhaul of workers’ rights in the Employment Rights Bill.
Probation periods – which can currently last as long as two years – are also expected to be shortened to six months and staff will get protection against unfair dismissal from their first day at work.
Labour is set to give seven million workers entitlement to sick pay from day one in a ‘once-in-a-generation’ overhaul of workers’ rights
Women will also be able to apply for maternity pay from their first day of employment rather than having to wait six months (file photo)
Women are set to be entitled to apply for maternity pay from their first day rather than waiting six months. Ministers have also vowed to strengthen protection for new mothers against unfair dismissal.
However, small-business hopes for a government fund to compensate them for the cost of more sick pay are likely to be dashed. But ministers have offered some concessions to businesses, including abandoning a statutory ‘right to switch off’.
The plans could spark a backlash from businesses, which are concerned about the burden and cost of the new rights, and unions which think they do not go far enough.
Tory MP Gareth Davies said: ‘Only Labour could come up with an unfunded tax rise. It won’t just cost the Exchequer, it will hit growth and investment too.’
Some details of the reforms will be decided by ministers under delegated powers after Labour pledged to deliver the new laws within 100 days of taking office.
A government source said: ‘Our plan to make work pay has always been about delivering economic growth by increasing security for working people, improving productivity and levelling the playing field for businesses. Ensuring people have sick pay when they need it is crucial to that mission.’
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Soaring workplace sickness costing an extra £30bn a year as days off double since 2018
Soaring workplace illness is costing UK firms an extra £30billion a year with days off sick doubling since 2018, a report reveals.
Employees now phone in sick an average of 6.7 days a year, which is up from 3.7 days six years ago.
This means the annual cost of staff absence has increased by £5billion over this period, analysis by the Institute for Public Policy Research reveals.
However, the biggest cost to business comes from ‘presenteeism’, when Britons turn up to work despite being unwell and unable to give their best, the think tanks claims.
Its report says a typical employee now loses the equivalent of 44 days productivity a year due to working through sickness.
Employees now phone in sick an average of 6.7 days a year, which is up from 3.7 days six years ago
This is up from 35 days since 2018, with the additional slack days hitting profits by £25billion a year, researchers found.
Workers in the UK are among the least likely to take sick days compared to other OECD and European countries.
But they are more likely to persevere at work through sickness, the IPPR says.
It stresses that people with some health conditions can benefit from ‘good’ work.
But when a poor work culture or limited access to sick pay compels people to graft despite being ill, it can slow recovery time, increase the risk of further sickness and spread disease to others, it adds.
The report reveals that working through poor health is more common among those from ethnic minorities, people in lower quality jobs and workers lacking formal qualifications.
The IPPR wants a new tax incentive for companies that commit to improving their workforce’s health; a ‘do no harm’ duty for employers; and compulsory reporting on worker health.
It describes the UK as ‘the (literal) sick man of Europe’, with poor quality jobs, overconsumption of unhealthy food, smoking, gambling and low rate of investment impacting public health.
And it warms that growing sickness will lead to people living longer in poor health, as well as posing a ‘grave fiscal threat’.
Citing analysis by the Office for Budget Responsibility (OBR), the report suggests economic inactivity due to sickness could lead to an £8.9 billion reduction in annual tax receipts, as well as higher welfare spending and higher healthcare spending.
Dr Jamie O’Halloran, senior research fellow at IPPR, said: ‘Too often, UK workers are being pressured to work through sickness when that’s not appropriate – harming their wellbeing, and reducing productivity.
‘This can be because of a bad workplace culture, poor management, financial insecurity or just weak understanding of long-term conditions among UK employers.
‘Our demonstration of a “hidden” productivity costs of working through sickness should catalyse a change in approach.
There are now 2.8million people inactive due to long-term sickness, with this figure having increased by 127,000 in the past year alone
‘We should strive to make sure the work we do is good for our health, that we have the time to recover when we need it, and to ensure businesses both contribute to and benefit from population health.
‘This would protect workers, boost profits and deliver growth.’
Wes Streeting waged war on sick note Britain in his first speech as health secretary, vowing to get people off benefits and NHS waiting lists and back to work.
There are now 2.8million people inactive due to long-term sickness, with this figure having increased by 127,000 in the past year alone.
Mr Streeting has asked the Department of Health and Social Care to expand its focus to boosting economic growth, making it his mission to cut NHS waiting times so people need less time off work with physical or mental health issues.
He has also said he will place a greater focus on public health and prevention than the previous administration in a bid to stop people falling ill in the first place.
The IPPR report also says the economy should shift away from junk food and alcohol towards products and services that promote health.
It adds: ‘We need to think more carefully about how investments – including what our pensions are invested in – drive health and support the health industries of the future.’
Kieron Boyle, chief executive of the Impact Investing Institute and IPPR commissioner, said: ‘Businesses and investors increasingly see health as an asset, not a cost.
‘This report is a blueprint for their role in creating a healthy and prosperous economy for everyone.’
Paul Devoy, chief executive of Investors in People, which accredits workplaces with a good culture, said: ‘All the evidence shows there is a clear link between employers having a positive culture of wellbeing in their organisation with productivity and sustainable organisational performance.
‘Focusing on systematically leading, supporting and improving a culture of wellbeing has long term benefits for all employers who make that commitment to their staff.’
A spokesperson for the Department for Work and Pensions said: ‘No-one should be forced to choose between their health and financial hardship, which is why we plan to strengthen statutory sick pay so it provides a safety net for those who need it most.’
