Insolvency lawyers to be called in by absentee firms?

Published on 8 Jun 2010 under category: legal

Firms facing high rates of employee sickness could find themselves calling in insolvency lawyers.

New research by the Confederation of British Industry (CBI) and Pfizer has found that absenteeism is costing businesses in the UK a collective £16.8 billion.

It also has serious indirect impacts on customer service and team plans.

According to the findings, just over one in ten (15 per cent) of sick days were not genuine.

For small firms, the money amounts to (an) annual £2.5 billion.

Public sector worker absence rates have improved marginally on last year, but employees are still averaging 8.3 days annually.

Companies that are already struggling with cash-flow could find that fake sick days push finances over the edge and force them to call in insolvency lawyers.

The introduction of 'fit notes' in the workplace is expected to reduce absenteeism.

Firms could also benefit from making sure that health and wellbeing are prioritised in the workplace.

Dr Berkeley Phillips of Pfizer commented: "Whilst employers view loss of productivity as the main impact of absence, as this report highlights, the economic consequences stretch much further and as such, we as a society, need to do more to advance health and wellness at every stage of life."

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.