Bank Holidays and Sick Days

HR faces a recurring challenge every year: managing sick leave around the August bank holiday. Companies often need to verify the legitimacy of such sick days. So, what steps can you take from an employer's perspective if this occurs in your company?

How sickness is dealt with on a bank holiday hinges on whether it is included within statutory holiday entitlement. Clear communication between employer and employee is crucial to determine whether the time off should be categorised as sickness or holiday and how it will affect pay. A well-defined policy is a good ally for maintaining balance and consistency. Documenting procedures, guidelines, or agreements will ensure a fair and transparent outcome for all parties involved.

Employers may include bank holidays in the statutory minimum leave entitlement, with the option to add additional bank holidays. As highlighted by the recent Harpur Trust case, this now covers staff in both full-time and part-time positions. We recommend checking all contracts from both employer and employee perspectives to ensure everyone understands the terms, especially if a bank holiday falls on an employee's non-working day.

Can I legally withhold sick pay? Statutory vs Company
Simply stopping Statutory pay could prompt an employee to contact HMRC's Statutory Payment Dispute Team. According to HMRC guidelines, employers should accept a valid sick note as proof of illness or may request additional details through a medical report. HMRC can also involve its medical services division in assessing employees if necessary.

Legally, you may only withhold company sick pay if this right is in a contract or policy. An agreement in writing signed by the employee is also valid. Anything outside this is an unlawful deduction, and an employee can file a claim.

Suggestions
Thoroughly reviewing your contract is a crucial step. Assess and update any contractual obligations to ensure your rules and procedures are exactly as you want them. Refer to the UK Government or HMRC guidelines to ensure your decisions are lawful and appropriate for your company. As we have mentioned, there are choices regarding dealing with bank holidays, so the contract must be thorough and clear for all parties. This diligence will ensure that you are fully prepared to manage sick leave around bank holidays.

An employer should conduct a return to work-interview following any sick days. These are perfect opportunities to gain all the information you need about an absence. You may take further action or withhold payment if insufficient evidence is offered. Always check contracts and legal guidelines!

Closing on bank holidays may be an option to remove any potential grey areas regarding sickness and leave. Closure can also allow you to specify that your staff take bank holidays as part of their statutory entitlement.

Hold meetings or distribute information packs outlining the rules for bank holidays. Aligning these with your policy or contractual agreements will enhance and reiterate any stipulations and keep everything open and transparent.

Choice plays a significant role in how pay is handled for bank holidays. As an employer, considering the impact of these choices is essential. For instance, avoiding wage deductions can significantly boost employee morale. We recommend maintaining fairness and consistency in your approach and ensuring absolute confidence in the policies governing these decisions.