Managing sick leave abuse

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Managing sick leave abuse

• Barney Jordaan

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Content

• Distinguishing different situations
• What is absenteeism or sick leave abuse
• Causes of absenteeism
• Trends statistics
• Costs
• Developing appropriate strategies, procedures
  policies
• Termination of employment

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Three situations

• AWOL fraudulent use of sick leave
• Genuine illness or disability (long term)
• Codes of practice Dismissal HIV/AIDS
  Disability
• Emphasis on return to work
• Absenteeism / sick leave abuse (short term)

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Defining absenteeism/sick leave abuse

• Short term
• Voluntary, i.e. employee has some control over
  it
• Employee not really too ill to work but uses sick
  leave within the rules

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Causes of absenteeism

• attitude
• work environment
• personal issues
• poor health
• lack of job satisfaction
• management style
• poor working conditions
• lack of clear standards policies
• transport problems
• stress
• ergonomic issues

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Trends in absenteeism

• higher pay less absenteeism
• longer service less absenteeism
• men less absent than women
• singles more absent than married employees

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Trends in absenteeism

• unionised employees more absent
• growth in organisation increases absenteeism
• Mondays gt40
• Tuesday 20
• Friday 12

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Cost of absenteeism

• Decreased productivity
• extra workload
• support, train orientate replacement staff
• increased supervision
• Administrative costs
• securing replacements
• re-assign remaining staff
• controlling absenteeism

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Cost of absenteeism

• Financial costs
• SA is losing an estimated R12 billion a year
  due to absenteeism and between R1.8 billion and
  R2.2 billion of that can be attributed to the
  effects of HIV/AIDS
• Business Report, 8 February 2005

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Cost of absenteeism

• Financial costs (contd.)
• The cost of absenteeism is not only limited to
  the employees salary for the day he is not
  working - it is actually three times that days
  salary taking into account hidden costs such as a
  temporary replacement for the absent employee
• Business Times, 22 April 2005

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Cost of absenteeism

• Financial costs (contd.)
• The indirect cost of sick absenteeism can add
  as much as 200 percent to the direct costs.
  One, two and three day sick leave incidents
  are normally responsible for about 50 of the
  total cost of absenteeism.
• HR Future, January 2005

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Dealing with absenteeism

• A broad-ranging strategy involving
• correct identification of the problem
• applying the right process to each situation
• problem-solving elements of performance
  management
• a bit of carrot and a bit of stick
• combines corrective measures with availability of
  assistance to remedy underlying causes

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Dealing with absenteeism

• Step 1 Collect accurate data
• - e.g. rate forms of absenteeism
• - types of illnesses frequency
• - ergonomics assessment
• - direct indirect costs - managers role
• - factors affecting job satisfaction
• - identify eliminate stressors

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Dealing with absenteeism

• Step 2 Institute a monitoring system (visible
  policing)
• - return to work interviews

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Dealing with absenteeism

• Step 3 Set a standard (trigger point)
• a target should be set for the organisation ()
• and for individuals e.g. number of days or
  number of instances in rolling12-month period or
  length of absence
• include indications of patterns, e.g. absences
  before or after weekends public holidays

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Dealing with absenteeism

• Step 4 Develop clear and appropriate policies
  procedures
• Absenteeism leave policy
• Distinguish AWOL, genuine illness, disability
  voluntary absenteeism
• Attendance Improvement Procedure

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Dealing with absenteeism

• Step 5 Set requirements for medical certificates
• Details of practitioner
• Originality
• Name of patient
• Date time of examination
• Date of certificate
• Period of recommended sick leave
• Indication of personal examination professional
  opinion
• Legibility

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Dealing with absenteeism

• Step 6 Seek medical advice
• vetting certificates
• communication with employees practitioner on
• factual details (date of visit, etc)
• impact of medication / illness on job
• impact of job on employees health

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Dealing with absenteeism

• Step 7 Awareness
• publicize company policy procedures
• inform employees of leave rights
  responsibilities

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Dealing with absenteeism

• Step 8 Adopt a joint problem-solving approach in
  counseling
• Step 9 Provide regular statistics name and
  shame
• Step 10 Provide incentives
• e.g. convert sick leave to cash
• certificates
• tine off
• vouchers

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Dealing with absenteeism

• Step 11 Adapt contract of employment
• require employee to provide diagnosis to agree
  to second opinion
• but use sparingly
• pay wage instead of remuneration

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Dealing with absenteeism

• Step 12 Monitoring feedback

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Implementation prevention

• Consultation
• Audit current situation
• Design strategy
• Develop record-keeping / monitoring system
• Feedback to employees
• Train managers employee reps
• Develop information sharing strategy
• Implement
• Regular review

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Critical success factors

• Early detection intervention by line managers
• Good communication problem-solving skills
• Reliable data
• Creating a healthy working environment
• With long-term absences ensuring early return

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Critical success factors

• Clear absence procedures
• Rigorous monitoring
• Using trigger points for action
• Defined roles accountabilities
• Effective processes
• Options for incentives
• Preventative measures

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Critical success factors

• Top management commitment
• Union buy-in
• All to understand the cost of absenteeism
• Employees to understand the limits of their
  rights
• Flexible working policies
• Work organisation job design
• Occupational health initiatives

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Termination

• Misconduct (disciplinary process)
• where dishonesty is involved
• where certificates no longer accepted
• Ill health (counseling process)
• if genuine disability
• if no basis for doubting that the employee is
  ill, but regular pattern

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Case law

• Jacobs v JDG Trading (Arb)
• A medical certificate stating that doctor had
  been informed that employee was indisposed during
  period of absence is not in itself sufficient
  proof that employee had adequate reason for
  absence. Further proof may be required.

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Case law

• Bennet and Mondipak (CCMA)
• Work-related stress leading to nervous breakdown
  Employer under duty to investigate causes of work
  stress and to explore ways to adapt job to remove
  stressors Until flaws in employers system is
  addressed, offers of alternative positions or
  dismissal premature.

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Case law

• SAPGWU obo Mashamaite / Tiger Brands Enterprise
  Foods (CCMA)
• Chairperson of hearing relying on content of
  private telephone call to accused employees
  doctor, without giving employee an opportunity to
  deal with information disclosed. Dismissal held
  procedurally unfair.