Does sick pay encourage workers to play ill?

New research claims paid sick leave leads to increased absenteeism among workers - including those who aren't ill.

Paid sick leave schemes encourage employees to stay home, even when they are not ill, a major research paper has found.
A paper from the National Bureau of Economic Research, in the US found that employees who have access to paid leave for illness are more likely to stay home and 'play ill'.

Unlikes Kiwi employers, US employers are not mandated to provide paid sick leave for staff. Statutory sick leave in the US is determined by individual states. 

Whilst the research found that sick schemes help "significantly decrease" the flu rate by encouraging contagious employees to stay home, it found that this also has a knock-on effect in encouraging absenteeism among workers.

However, a lack of paid leave for sickness can lead employees to spread illness among co-workers - the research found that the absence of a sick leave programme often forces contagious employees to go into work, risking infecting their colleagues.

The paper, The Pros and Cons of Sick Pay Schemes, also looked at Germany, which it said has one of the "most generous universal sick leave systems in the world," - employers are usually mandated to provide 100% sick pay from the first day of absence for up to six weeks.

It found that where sick pay had been reduced from this level, the reduction in those 'playing ill' was larger than the increase in the infectious disease rate.

This suggests that less provision for sick pay could lead to fewer cases of worker absenteeism, without significantly impacting the sick rate among employees.

More like this:

Sports events prompt Kiwis to call in sick 

Why you shouldn’t replace a sick employee

Bosses have “blinkered” attitude to sickness
 

Recent articles & video

Tesla to lay off over 6,000 employees: reports

What are the top factors driving women to leave employers?

First-ever trial begins against New Zealand executive for WHS charges

Migrant workers warned of deportation amid growing offences

Most Read Articles

Kiwi firms still looking to hire despite challenging economy

'We need to be constantly pulse-checking with employees'

Manager wins over $22,000 for unjustified disadvantage, dismissal