Managing short-term absences

There are several employment changes that come into force this April. A fundamental one for settings will be the change to Statutory Sick Pay (SSP).

From 6 April 2026, the three waiting days will be removed, so an employee will be entitled to receive statutory sick pay from the first day of any period of absence. The lower earnings limit will also be removed, allowing all employees to receive SSP regardless of how much they earn per week.

From April 2026, employees will receive either the flat SSP rate (expected to increase from £118.75 to £123.25 per week) or 80% of their average weekly earnings, whichever is lower.

The changes will add an additional financial burden to an already struggling sector. Settings should therefore consider what they can do to reduce short-term sickness absence in the workplace.

The starting point is to check whether you have a sickness absence policy and ensure it is up to date.

A standard sickness absence policy and procedure, and general guidance on how to manage sickness absence are included in the Alliance publication People Management for the Early Years (https://tinyurl.com/U5-peoplemanagement).

One common misunderstanding about absence review policies is that they question whether someone is genuinely unwell. The issue isn’t whether the illness was real;, it’s the impact that frequent, short-term absence has on the business and the wider team.

Communication is therefore key to the introduction of such a policy. You should explain what it is, how it will be implemented, and that its aim is to address the additional burdens that short-term absences place on the business and balance these against the genuine needs of employees.

A key part of any attendance management procedure is the use of trigger points. These help you be upfront with employees about when absence levels become unsustainable for the business. For example, a trigger point might be a set number of days’ absence per employee over a 12-month period.

Individual circumstances must be reviewed when considering the use of attendance targets and trigger points.

Pregnancy, or the impact of any underlying medical condition or disability, should be taken into consideration. If an attendance target is set, the employee should be made aware of how their attendance will be reviewed and over what period.

You should conduct a return-to-work interview after each period of sickness to ensure you have a record of all absences. Highlight any concerns and whether you are considering taking formal action.

When reviewing an employee's sickness record, any patterns that cause concern should be identified and discussed. This could include repeated absences on a particular day of the week or at a particular time – for example, just before a monthly deadline or towards the end of a busy period.

Your absence review process should have three formal stages, with provision for an appeal at each stage. During these meetings, employees will have the right to be accompanied by a trade union representative or work colleague. Timescales for each stage will depend on individual circumstances and some sickness absences may be dealt with over a longer or shorter period than others.

The decision to move an employee to the next stage will vary from case to case. Factors to consider include:

■ the reasons for the absence

■ the impact of the absence on service delivery and colleagues

■ any additional support available

■ whether attendance has improved since the informal stage

At stage 1 or stage 2, you should outline the sickness absence concerns and review the circumstances of the case, including actions taken to date. The employee should be given the opportunity to state their case and raise any factors they wish to be considered. You should identify any measures, such as an occupational health referral, which may be beneficial. Discuss any attendance targets for improvement and a timescale of review.

If after the meeting and the evidence presented it is considered that no further action is required, this should be confirmed to the employee in writing.

If the employee’s attendance is unsatisfactory, you should issue a formal written warning stating the improvements required, the timescale, any support to be provided and the consequence of not meeting the attendance target within the review period. This should also set out the employee’s right of appeal.

A first written warning will remain active for six months and a final written warning for one year. After this period, it will remain on file for reference but will not be considered when making decisions about future sickness absence proceedings.

If the employee's attendance does not improve, as specified in the written warnings issued at stage 2, they should be required to attend a formal stage 3 absence review meeting.

The employee should be given written notice of the meeting. The invitation should explain its purpose and outline the sickness absence concerns and reasons for them. It should also make clear that one possible consequence of the meeting is the termination of employment and advise the employee of their right to be accompanied.

The employee should be informed of the outcome in writing, even if no further formal action is required.

The notification of the decision to dismiss should include the right to appeal, the reasons for dismissal, any notice arrangements, and the date of employment termination.

With changes to statutory sick pay placing additional pressure on early years settings, it is important to have clear procedures in place for managing short-term sickness absence. Consistent policies, open communication and early intervention can help minimise disruption while ensuring employees are supported and treated fairly.

As an Alliance member, you have access to Law-Call's 24-hour legal advice telephone service.

Details can be found in the Alliance member benefit overview section of EYA Central: bit.ly/U5Law-Call.