Sickness costs small firms £1,500 per year

Date: 4th November 2011

Small businesses around the UK are losing hundreds of pounds each year as a result of employee sickness.

That is according to recent research published by the Federation of Small Businesses (FSB), which showed the average loss to be £1,500 per year.

This, the organisation claimed, should encourage the government to introduce a small employer's relief for the recovery of statutory sick pay.

According to the FSB, while the smallest of businesses are not regularly affected by long-term absence, when it does happen it can have a significant impact.

John Walker, national chairman of the federation, said: "Sickness absence is one of the most complex pieces of employment law [small firms] have to deal with. It can also be costly with small businesses paying around £1,500 over the past 12 months.

"The government must provide a small employers relief for statutory sick pay in the same way they do for statutory maternity pay so those small businesses that experience a member of staff on long-term sickness absence, are not hampered and are given the support they need."

Posted by Jacob Williams

Meanwhile, one expert has urged small business owners to remain committed to securing new funds.

Serious Brands told firms to try every bank and not just accept the decision of one institution.