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Home » All Content » Contributors » Occupational health can ease sick pay pain

Occupational health can ease sick pay pain

March 28, 2025 by a Daily Business Contributor Leave a Comment

Employers can mitigate the impact of new rights on absence by taking preventative action, says NEIL GREENBERG


On 1 April the Employment Rights Bill introduces a significant shift for employers: statutory sick pay will now be required from an employee’s very first day off work. This seemingly small change carries major financial and operational implications – especially for businesses grappling with tight margins and rising absence rates.

The change moves sickness absence squarely onto employers from day one. It creates a new urgency to support those who are already unwell, but to proactively manage and maintain health at work.

It raises a critical question: how can employers prevent avoidable sickness absence before it starts? The answer lies in occupational health. Yet, despite its well-documented return on investment, occupational health (OH) remains one of the most underused tools in UK workforce strategy.

According to the Society of Occupational Medicine (SOM), every £1 invested in OH returns between £2 and £5 through reduced absence, improved productivity, and better employee retention. OH professionals can spot early warning signs, challenge inappropriate fit notes, recommend reasonable adjustments, and support people to remain in work rather than default to absence.

Many health conditions don’t require time off, but without timely intervention, absence too often becomes the path of least resistance. A short-term issue becomes a long-term cost. With day-one liability now in place, the financial risk for employers has increased—and so has the value of occupational health.

The stakes are high for small and medium-sized enterprises (SMEs). While large organisations may have OH, many SMEs have limited access to such expert support.

Yet these businesses are just as exposed to the costs of sickness absence, and often less able to absorb them. Without action, SMEs risk bearing the brunt of this policy change. That’s why SOM is calling for universal access to OH – it should not be a privilege for big business. It must be a basic support available to every employer, everywhere.

At a time when the government is seeking to reduce workforce inactivity and boost productivity, integrating OH into businesses makes strategic sense.

But policy alone isn’t enough. Employers must also act— investing in OH isn’t a compliance exercise; it’s a business decision that pays dividends. Proactive health support is no longer optional; it’s a necessity for managing workforce risk and cost.

The Employment Rights Bill is more than a legal change – it’s a moment of reckoning for how we think about workplace health. If the government wants to reduce pressure on the NHS, support the economy, and help people stay in work, OH must be at the heart of the solution.

Professor Neil Greenberg is president-elect of the Society of Occupational Medicine (SOM)

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