Creating a lawful sickness absence policy for your UK startup

When someone on a small team is off sick, the work does not disappear. It lands on everyone else. Without a clear sickness absence policy, founders often improvise. That leads to inconsistent decisions, missed statutory payments, and occasionally a resignation or a claim.

A sickness absence policy is not a legal requirement for UK employers. But having one, even a short one, helps you handle absence fairly and consistently. It also tells your team what you expect, and what they can expect from you.

This guide is for founders with one to twenty people and no in-house counsel. It covers what to include, what to avoid, and the key legal backstops. It is not legal advice. If you are unsure about a specific case, particularly a long-term absence or a dispute, speak to a solicitor or HR specialist.

Why a written policy helps

Small startups often rely on goodwill. Someone messages the founder, says they are unwell, and that is the end of it. That works until one of these happens:

• Someone is off repeatedly on Mondays or Fridays, and you suspect the pattern is not genuine.
• Someone is off for several weeks and you are not sure what you can ask or when they might return.
• Someone returns to work but clearly cannot do the full role, and you need a structured conversation.
• Someone resigns and claims they were treated unfairly during an absence.

A short policy gives you a shared reference point. It sets out how to report sickness, when fit notes are needed, how you handle pay, and what happens on return. It also protects the employee. They know the process, and they know you will not make up rules on the spot.

What to include in your policy

Keep it practical. Aim for one to two pages. Include these sections.

Reporting sickness

State how and when someone should tell you they are unwell. Common practice:

• Contact their manager (or the founder) by phone or message before 9am on the first day.
• Say briefly what is wrong, if they are comfortable doing so.
• Give an estimate of how long they expect to be off.
• Keep in touch if the absence extends beyond the first day.

Avoid asking for detailed medical information at the reporting stage. You need to know they are unwell, not a full symptom list.

Fit notes

In the UK, employees can self-certify sickness for the first seven calendar days. This includes weekends and bank holidays, not just working days. After seven days, they need a fit note (formerly a sick note) from a GP, pharmacist, nurse, or other healthcare professional.

Your policy should say:

• For absences up to seven calendar days, complete a self-certification form. You can provide a simple one-page template.
• For absences longer than seven days, provide a fit note and keep them coming if the absence continues.
• If a fit note says the person “may be fit for work” with adjustments, discuss what is reasonable before agreeing.

You cannot demand a fit note for a one-day absence. That would be disproportionate and would push GP workload for no reason.

Statutory sick pay (SSP)

SSP is the legal minimum payment for eligible employees. As of April 2024, it is £116.75 per week for up to 28 weeks. Employees qualify if they earn at least £123 per week on average and have been off sick for at least four days in a row (including non-working days).

Your policy should state:

• Whether you pay SSP only, or offer enhanced sick pay (many startups cannot afford enhanced pay, and that is fine).
• That SSP starts from the fourth qualifying day.
• That SSP is subject to tax and National Insurance in the usual way.

Do not promise enhanced sick pay unless you can sustain it. Changing a contractual entitlement later is difficult. If you are not sure whether sick pay is contractual or discretionary, get advice before writing the policy.

Return to work conversations

When someone returns after any absence, even a day or two, have a short chat. This is not a disciplinary meeting. It is a welfare check and a chance to update them on anything they missed.

Cover:

• How they are feeling now.
• Whether they are fully fit to return, or need temporary adjustments.
• Any support they need, such as a phased return or reduced hours for a short period.
• Any work priorities that changed while they were away.

Keep a brief note of the conversation. One or two lines is enough. Store it securely.

Long-term or repeated absence

Your policy should explain what happens if absence becomes a concern. This does not mean penalising someone for being genuinely unwell. It means having a fair process for understanding the situation and deciding what to do.

Typical steps:

1. After a defined trigger, such as three separate absences in three months or four weeks off continuously, invite the person to a welfare meeting.
2. Discuss the pattern, the impact on the business, and any underlying health condition or disability.
3. Consider adjustments. This is a legal duty if the condition counts as a disability under the Equality Act 2010. Adjustments might include flexible hours, reduced duties, or a phased return.
4. If absence continues without a clear path back to work, you may need to consider a capability process. This is a formal procedure, and you should get advice before starting it.

Do not dismiss someone for sickness absence without following a fair process. Even in a small company, an employment tribunal can find a dismissal unfair if you acted without warnings, adjustments, or a proper investigation.

What to avoid

A few common mistakes in startup sickness policies:

• Asking for a fit note for every absence. Not lawful or necessary.
• Treating pregnancy-related sickness as ordinary absence. Pregnancy-related illness must not be used for disciplinary action or redundancy selection. Keep it separate.
• Ignoring disability. If an absence is linked to a disability, you have a duty to make reasonable adjustments before considering any formal action.
• Promising full pay without checking the cost. A generous policy can become a financial strain if two people are off long-term.
• Sharing medical details with the whole team. Keep absence records confidential and store them separately from general personnel files.

How StartupDocs can help

You do not need to start from scratch. StartupDocs includes a professionally drafted sickness absence policy template as part of its UK startup document pack. You can edit it with AI tracked changes, adjust the sick pay wording to match your own approach, and export to PDF or DOCX for your staff handbook.

Pair it with a self-certification form, which is also available as a template. Store both in your document hub so they are easy to find when someone reports absent.

Keep it simple and fair

A sickness absence policy is not about catching people out. It is about having a calm, consistent process when someone is unwell. Write it in plain English, keep it short, and apply it the same way for every team member.

If you are dealing with a complex absence, a disability, or a potential dismissal, do not rely on a template alone. Speak to a solicitor or a qualified HR adviser. The cost of advice is almost always lower than the cost of getting a process wrong.