Excessive Absenteeism: When is the Time for Termination?

The U.S. The Bureau of Labour Statistics notes that in 2020, every workday throughout the whole year – 110,000 workers were absent. Excessive absenteeism has been an issue to research for many years now.

Centre for Disease and Control Prevention claims that US employees lose around $225.8 billion annually, due to absenteeism. Similarly, the European Foundation for the Improvement of Living and Working Conditions shows that the excessive absenteeism in the workplace could get to 2.5% of GDP in Europe, adding up to $470 billion in the European Union alone.

HR professionals, managers, and business owners are advised to carefully review the absence and attendance policies.

“By carefully planning policies, managing absenteeism and tackling the underlying causes an organization can significantly reduce the impact of employee absences on its bottom line.” 

SHRM

Is there a definition for excessive absenteeism?

In every company, organization, or, institution a level of absenteeism is more than expected and common. This includes days off because of vacations or unplanned days, such as sick days, family emergency matters, and similar.
We call an employee absence excessive when it surpasses the so-called expected and common levels, or if it simply seems unreasonable. There isn’t definition of excessive absenteeism by law – since each case is individually evaluated based on the company’s policies, expected days off in the company and industry, as well as other circumstances such as procedures to take days off.

Both employers and employees have their rights

Before analysing any further how to/if to terminate your employees for excessive absenteeism, lets understand the rights for each party.

As an employer, you can terminate an employee due to the contracts of employment agreements. Employees rights are protected by law, such as: anti-discrimination and anti-retaliation rights.

Managing Excessive Absenteeism

Different companies have different regulations and practices when it comes to managing excessive absenteeism. Through different experiences and suggestions,, we recommend the following steps to undertake for each employer:
1. Present your company’s excessive absenteeism policies, regulations and procedures beforehand;
2. Care about your employees. Understand and recognize their reasons;
3. Address the issue in its beginning;
4. Apply a Performance Improvement Plan;
5. Reward and acknowledge improvements.

1. Present your company’s excessive absenteeism policies, regulations and procedures beforehand

Being proactive in these matters turns out to always have a more positive outcome. We recommended to prepare an employee handbook consisting of policies, regulations and procedures that maximize the avoidance of absenteeism. This handbook will be presented to the employees in the beginning of the work relationship.

The handbooks should be simple and clearly present the company’s expectations and measures of correction that may arise. When you present the handbook, the employees should sign it to confirm that the handbook is well-understood.

2. Care about your employees. Understand and recognize their reasons

It’s always easy to assume that an employee is simply lazy or not punctual enough. Many managers don’t care to understand what the underlying reason for their absence is – but they should.

Understanding each employee’s unique barriers is crucial, whether they are absent by burnout, personal difficulties, health problems, drugs and alcohol, or transportation concerns. By concentrating on the symptoms of absenteeism as well as the underlying cause, your company will save money, resources and protect its overall function.

While paying attention and demonstrating empathy, use the occasion to reiterate the obligations and standards of the position. the importance of having excellent attendance to your operations and inquire as to what can be done to assist them in arriving on time and according to schedule. If necessary, also encourage the employee to take time off to rest, reflect or simply avoid burnout – but keep in mind to also explain that excessive absenteeism can cause a lot of issues for the overall functioning of the company and the experience of other colleagues.

3. Address the issue in its beginning

If there is no improvement after the verbal discussion, the next step is to issue an Excessive Absenteeism Warning Letter as a follow-up. You should make it clear in the written warning that you anticipate further, immediate progress.

You can use this to record the attendance problems and stop any more conflicts. It also shows that you talked to the employee about the issue and informed them of the repercussions. The concerned employee should attest to receiving the warning by signing this document.

If after the first two efforts there is still no discernible progress, you can issue one final warning that must be observed and signed. The next occurrence of severe absenteeism could result in job termination, according to this warning.

4. Apply a Performance Improvement Plan

A Performance Improvement Plan (PIP) explains the performance difficulties the employee needs to address as well as how to do so. You can utilize work performance improvement to address failures to reach particular employment goals in addition to addressing attendance difficulties. Don’t forget to have the employee sign an appreciation form attesting to their understanding of your expectations.

5. Reward and acknowledge improvements

According to neuroscientific research, incentives and praise are more effective at motivating workers than threats and sanctions. It’s crucial to recognize when staff members have improved their attendance and to publicly commend them for accomplishments, like 100% attendance (i.e., no unexcused absences).

It would be beneficial if you also thought about financial incentives to encourage great attendance. “For a minimal investment, firms may minimize absenteeism, enhance productivity, and reduce the time managers need to spend juggling calendars to achieve an acceptable service level,” the Society for Human Resources Management (SHRM) claims. Employees can benefit from even a $25 gift card or free corporate gear.

Terminating an Employee for Excessive Absenteeism

If everything else fails and excessive absence persists overtime, termination could be the only option to put an end to the problem. And, let’s face it: terminating a worker is never simple.
We suggest the following steps as the proper approach to terminate an employee for inadequate attendance:

1. Prepare All Associated Documents

Being ready in advance might make a termination meeting more friendly. Gather any supporting documentation you might require at the meeting, such as attendance records, warnings about the problem, or other relevant documents. Additionally, you should be prepared with the details if your employee was covered by a group health plan and qualifies for coverage after termination.

The Excessive Absenteeism Termination Letter is the next thing you’ll require. It enumerates the grounds for termination that you will also talk about at the termination meeting. It also includes information on any applicable unemployment benefits, severance compensation, and final salary.

2. Speak with the HR Department and your legal counsel

It’s always a good idea to consult a lawyer and your human resources department to be sure that your reason for termination complies with company policy. They can make sure you’re abiding by both federal and state employment laws. Additionally, if you have an employment contract, your lawyer can confirm its legality and give you advice on how to terminate it.

3. Schedule a Termination Meeting

Scheduling a termination meeting is the final step. Even though it’s never easy to break the news, you must schedule the meeting as soon as all of the necessary paperwork is prepared. You can stay away from the following two items while holding the conversation:
– Don’t apologize; terminating someone’s employment was a business decision you made in response to them breaking a corporate rule. Apologizing will not only weaken your case but also provide room for interpretation;
– Avoid making comparisons to other employees: A fired employee should understand that they were let go because they failed to perform the job’s requirements, not because someone else could do it more quickly or more effectively. In this stage, discussing how other people performed at their jobs is irrelevant and may constitute prejudice.

Further reading

How To Help Your Employees Succeed
No Call No Show Policy
Best Gratitude Wall Ideas To Cultivate A Happy Workplace
Structured Workplace Learning