Abolition of Percentage Threshold Scheme for Employers?

The government response to the independent review of sickness absenceFitness for work has been presented to Parliament by the Secretary of State.

The review Health at Work – an independent review of sickness absence, began in 2011 and presented a detailed analysis of:

· the impact of sickness absence on employers, the State and individuals; and

· the factors which contribute to and prolong sickness absence and which, in too many cases, mean employees move out of work and on to benefits.

The review also made a total of 13 recommendations which the government have responded to. Full details can be found within the report however the following sprang out as being notable for those of us within the Payroll Industry.

The need for a revision to be made to the guidance of the fit note to ensure that judgments made about an individual’s fitness to work move away from only job-specific assessments, in reply, it is the government’s intention to publish revised guidance for GPs, employers and individuals, during the first quarter of 2013.

Another recommendation is the abolition of the Percentage Threshold Scheme (PTS) which has been highlighted as “compensating mainly smaller employers for very high rates of sickness absence”. The government have agreed and in return will instead be using the funds saved on the provision of a new health and work assessment and advisory service. It is proposed that the service would begin in 2014.

The recommendation that expenditure by employers which is targeted at keeping sick employees at work, for example, medical treatments or vocational rehabilitation costs should attract tax relief. The government will decide upon this as part of the 2013 Budget.