'Small employer's relief' to cover sick pay needed, says FSB

Employment Law & HR update 01/11/2011

New figures have revealed that sickness absence is costing small firms an average of £1,500 every year.

The Federation of Small Businesses (FSB) released the findings in its ‘Voice of Small Business' survey panel, and revealed that long-term sickness absence can have a big impact on small firms.

Whilst the research found that small businesses only report 2.4 days sickness absence per employee each year - which is a good deal lower than the national average of 7.7. days across firms of all sizes – when it does happen, the costs can be high. For nine per cent of small firms, such absence cost them over £5,000 over the last year alone.

As a result of the findings, the government is now being urged to roll out a small employer's relief for the recovery of statutory sick pay (SSP). The relief would be applicable for all businesses whose yearly National Insurance Contributions bill was under £45,000.

The FSB said that many small firms find that sickness absence and holiday entitlement are amongst the toughest aspects of employment law as a whole, with 40 per cent of firms surveyed reporting as much.

Federation of Small Businesses' National Chairman, John Walker, said, “Research shows that staff in smaller firms are more often committed and loyal. But sickness absence is one of the most complex pieces of employment law they have to deal with.

“The Government must provide a small employers relief for statutory sick pay in the same way they do for statutory maternity pay so those small businesses that experience a member of staff on long-term sickness absence, are not hampered and are given the support they need,” Mr Walker added.

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