The Government's intention is to look at long-term prosperity and economic growth by supporting businesses to ensure the labour market remains strong and resilient. One way of doing this it to support disabled individuals - and those with other health issues, to stay and progress in their employment. The Government's vision has - however, hit an obstacle: That long-term sickness absence is now the main reason given by working-age members of the public as to why they are economically inactive.
Further, the Office for National Statistics has confirmed that there are 2.5 million people economically inactive because of long-term sickness - of whom, 1.35 million (53%) reported that they had depression, bad nerves, or anxiety in Q1 2023. Ill-health that is preventing working-age people from working is estimated to cost the UK economy around £150 billion per year. Not only is this equivalent to 7% of GDP, it also means that 186 million working days were lost to sickness or injury in 2022 alone.
The Government has acknowledged that Occupational Health (OH) services could help employers provide support to manage an employee's health issues. What's more, employment case law emphasises that an employment tribunal will look at an employee's medical history - and the employer's up-to-date medical assessment of their employee, to determine if any dismissal based on incapability is fair and not disability discrimination against that employee. If the latter is the case, then a successful damages claim could be unlimited.
What is the Government Looking to Consider Over the Consultation Process?
Through the consultation process, the Government will be looking to establish a partnership between themselves, employers, and OH providers, to see how employers can increase referrals to OH services. To achieve this, they intend to introduce a voluntary Government-endorsed, evidence-based accreditation scheme for OH referrals; and looking to improve the availability of OH services so they are easily-accessible to businesses of all sizes.
The consultation process will - amongst other things, look at how other countries deal with such matters. Further, the Government is looking if it is prudent to extend the fit note certification beyond GPs and other authorised healthcare professionals - such as registered nurses, occupational therapists, physiotherapists and pharmacists. It's worth noting however, that any extension to unregulated health professionals could be an issue of concern as employers could lose confidence in the effectiveness of such fit notes.
Will there be any Tax Incentives for Employers making OH Referrals?
This is unclear at the moment, but some reference has been made on the possibility of tax incentives to help employers provide OH services for their staff.
The Government has acknowledged: "Many employers... have received unsatisfactory OH reports that either raise more questions than they answer, or lack specific workable recommendations... Often, due to poor experience with OH, some employers see the service as a tick box exercise in managing long-term sickness absence and limited to a procedural step."
Despite this, the Government do believe that - by providing better OH services in the future, it may help employers see the real benefits of engaging with the process.
The consultation will close on 12 October 2023.
This article is intended as a brief guide for educational purposes only. If you have any concerns, you are advised to call the Quest Advice Line on 01455 852 028 - where a team of professionals can advise you, and meet all your HR needs.
