The Department for Work and Pensions has finally publishing guidance for employers about the long awaited Fit for Work service. Here we look at what the service provides and what it will mean for employers and employees.

Presently, more than 130 million days annually are lost to sickness absence at a cost to the economy of around £15 billion. Employers face an annual bill of around £9 billion for loss of production and sick pay costs, and individuals face a loss of earnings of £4 billion. In addition to the financial consequences, there is strong evidence that sickness absence also negatively impacts on health and wellbeing.

Evidence shows that the sooner the causes of absence are identified, and acted upon, the better. Intervention at 4 weeks, compared to 6 months, has a greater impact as an employee is more likely to still have an attachment to work. The longer an employee is off work, the lower their chances of ever returning to work.

It's estimated that Fit for Work Scotland will:

• Reduce employers' sick pay costs
• Reduce the cost to the Scottish Government associated with out-of-work benefits
• Increase Scottish tax and National Insurance revenues by £10 million to £21.5 million per year
• Increase Scotland's economic output by £45 million to £90 million per year

The Fit for Work allows employers to manage sickness absence in their place of work and gives employees and their GPs with access to work-related health advice.

The service provides:

• Free health and work advice through a website and telephone advice line to help with absence prevention; and
• Free referral for an occupational health assessment for employees who have reached, or whose GP expects them to reach, four weeks of sickness absence.

It is hoped that this will enable employees to return to work sooner and help reduce sickness absence costs. The scheme should assist SMEs which have limited access to occupational health advice and services. Employees will normally be referred by their GP (which can be before an employee has been absent for four weeks), but employers can also make a referral after four weeks of absence with the employee's consent.