At KeystoneHR, we understand that sickness absence—whether short‑term or long‑term—can place significant strain on SMEs. With smaller teams, every absence has a bigger impact, and managers often lack the time or sometimes the expertise to navigate complex HR processes and employee needs. We help SMEs manage all types of sickness absence fairly and legally, from routine absences to long‑term cases linked to physical or mental health. By combining clear policies, practical guidance, and trauma‑informed support, KeystoneHR ensures businesses protect their people, remain compliant, and maintain operational stability.
Background
Client: An estate agent with 3 branches and approx. 10 employees
Issue: An employee, Sam, has worked for the company for three years. Over the past six months, Sam has been signed off with stress and anxiety, linked to workload pressures and personal circumstances. The absence is now considered long‑term, and the company is very concerned about both Sam’s wellbeing and the impact on business continuity.
Challenge:
- Company resource constraints: Covering Sam’s role is stretching the small team and increasing costs. Sam is well known locally and her brand attracts work to the business which is being commented on my current and prospective clients.
- Legal obligations: The employer must comply with the Equality Act 2010, which may classify Sam’s condition as a disability, and follow ACAS guidance on absence management alongside it’s own policies.
- Employee wellbeing: Balancing support with operational needs, while avoiding discrimination or premature dismissal.
- Communication barriers: Sam feels anxious about returning and fears stigma from colleagues and questions from clients.
Our Approach
The company has been a retained client for a number of years so had an existing policy we could ensure was followed, each employee absence is personal so we offered guidance on how to support Sam whilst acknowledging the companies position.
Step 1 - Initial Engagement
- Maintain regular, sensitive contact with Sam (monthly or bi-weekly welfare calls).
- Provide reassurance that their role is secure while exploring reasonable adjustments.
- Document all communications carefully.
Step 2 - Medical Evidence & OH Referral
- Request fit notes and, with consent, refer Sam to Occupational Health.
- Obtain guidance on prognosis, workplace adjustments, and phased return options.
Step 3 - Exploring Adjustments
- Consider reduced hours, flexible working, or temporary role modifications.
- Offer access to counselling or EAP services.
- Train managers on mental health awareness to reduce stigma.
- Agree what is communicated with colleagues and clients.
Step 4 - Formal Review Meeting
- Hold a structured absence review meeting with Sam, Keystone HR, and their manager.
- Discuss OH recommendations, agree on a phased return plan, and set review dates.
- Clarify expectations while showing empathy and support.
Step 5 - Outcome & Follow-Up
- Sam returns on a phased basis (3 days per week, gradually increasing).
- Adjustments include workload redistribution and regular check‑ins (for an agreed period of time).
- Management and Keystone HR monitors progress and documents improvements.
- If absence had continued without improvement, capability procedures would be considered, but only after exhausting adjustments.
Outcome
Sam successfully reintegrated into the team after a phased return, reporting improved wellbeing and reduced anxiety. The company benefited from retaining an experienced employee, avoiding recruitment costs, and demonstrating a supportive culture. The process reinforced trust and showed staff that mental health is taken seriously and added to the psychological contract.
Key takeaways
- Early and Sensitive Engagement: Regular, supportive contact with the employee helps maintain trust and reduces anxiety about returning.
- Legal Compliance: Long‑term mental health conditions may qualify as disabilities under the Equality Act 2010, so SMEs must follow fair processes and avoid discrimination.
- Occupational Health Guidance: Independent medical advice is essential for shaping reasonable adjustments and phased return plans.
- Reasonable Adjustments: Flexible hours, workload redistribution, and wellbeing support can enable a successful reintegration without excessive cost.
- Proportionate Approach: Exhausting supportive measures before considering capability procedures helps to protect both the employee and the business from tribunal risk.
- Cultural Impact: Demonstrating care for mental health strengthens employee loyalty, reduces turnover, and builds a reputation for fairness.
KeystoneHR involvement:
We can provide support to our clients through our Keystone packages or we can build a bespoke approach depending on your needs and budget, for example:
- Policy Framework: Clear sickness absence policy aligned with ACAS guidance.
- Manager Coaching: Train managers to hold sensitive welfare meetings and apply trauma‑informed practice.
- OH Coordination: Supported referrals and interpretation of medical advice.
- Compliance Assurance: Ensured documentation protected the business against reasonable tribunal risk.
- Culture Building: Helped embed mental health awareness and resilience strategies across the workforce, with introduction to training providers.
In summary: This case shows how proportionate, legally compliant steps can balance employee wellbeing with operational needs, while reinforcing a culture of fairness. It also builds manager awareness and confidence should they experience another case and they can apply their learning with hopefully less intervention from KeystoneHR and reducing overall cost but improvement culture and trust.
