Staff absence is expensive

Staff absence

Studies have shown that staff absences from sickness or holidays can be very expensive for businesses.

The cost of annual leave

Under UK laws, full time staff are entitled to annual leave of 28 working days. This is more than 1 month!

If we take an example of an employee on £25,000 pa and they are only in the office for approximately 11 months of the year. This lost month will cost a business £2,276 (at 2017 tax rates) in wasted wages.

Moreover, the business may need to hire temporary staff, contractors or pay overtime at a higher rate.

There will also be disruption to the business and temporary replacements may not know how to deal with regular customers or issues.


Statutory sickness pay only has to be paid after 3 days of continuous sickness, however many businesses will have more generous sick pay policies.

Again, businesses are paying for lost worker hours.

There could also be urgent problems or deadlines that can’t be dealt with until the worker gets back.

What can be done?

We do believe that staff absence should receive annual leave and sickness pay, but why should your business pay for this in an inefficient manner and suffer disruption?

At MAH, we use teams of people to process your tasks and to get things done. This means that if one of our team will be absent for holidays or sickness, we’ll always have cover ready. This means your business will continue to run smoothly, without disruption and without paying for lost hours.

By Mohammed Haque

Mohammed is a chartered accountant (ICAEW) with many years of experience in dealing with complex audit, accounting and tax matters.

Leave a comment

Your email address will not be published. Required fields are marked *