Employers often ask if they can modify a company sickness policy. The answer depends on whether the policy is written into the contract or merely a general guideline. If the policy is clearly non-contractual and states it can be amended, the employer can usually make changes and inform the staff directly. However, if the policy forms part of the terms and conditions, a unilateral change is not permitted.
Contractual vs. Non-Contractual Policies
When a policy is contractual, it legally binds both the employer and the employee. Changing these terms requires agreement from both parties. The source notes that you cannot simply impose a change unless it is required by law. This legal framework prevents employers from altering working conditions unilaterally. Employers must tread carefully when modifying these specific obligations.
There is also the matter of the Employment Rights Act 2025 and the Equality Act 2010. These laws create a tightrope for businesses trying to update their rules. Any changes to sick leave rules must avoid discrimination. For instance, altering rules to refuse paid time off for medical appointments could be seen as impinging on a disabled employee’s rights under the Equality Act. The guidance suggests that employers need to stay current with government rules regarding fit notes and pay.
Related: Understanding sick pay rules for businesses
The Consultation Process
Before making changes, a consultation process is required. This involves informing all affected employees of the intended changes and explaining why they are necessary. The communication does not always need to happen in a one-on-one meeting. A memo or email to all staff, or a collective gathering, should usually suffice. If the staff is represented by a trade union, those representatives must be consulted as well.
During this phase, the employer should listen to any concerns the employees raise. The goal is to give staff the opportunity to offer alternative ideas or express their worries. If the changes are beneficial to the employees, agreement is likely after consultation. Even if some initial resistance occurs, the staff may understand the need for the changes and agree in the end.
However, if strong resistance remains after these discussions, the employer has limited options. The source mentions a complex procedure involving the termination of the current contract and offering a new one with the updated terms. This is a last resort and carries the risk of an unfair dismissal claim at Employment Tribunal. Legal advice is required before taking this step.
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Future Changes to Statutory Sick Pay
Legal changes are on the horizon that will affect how companies handle sick leave. The Employment Rights Act 2025 introduces updates to Statutory Sick Pay. As of April 2026, the rules will shift significantly. Employees will be entitled to sick pay from day one of their illness, rather than the fourth day, which is the current standard. The lower earnings limit will also no longer be in place.
These updates will alter the financial setting for businesses. Companies will need to adjust their budgets to accommodate the new requirements. Understanding these changes is essential for maintaining compliance. The government has outlined specific guidelines to help firms prepare for the transition.
