Katlego Sekhu
South African businesses are facing a significant challenge with sick-leave fraud, which is estimated to cost them up to 17% of their payroll annually. Employers are now urged to approach all medical certificates provided by employees with caution, as this type of fraudulent activity is on the rise.
To shed light on this pressing issue, Labour Economist Andrew Levy recently joined Sizwe Dhlomo for an in-depth discussion.
Levy, emphasized that employees have a contractual obligation to be reliable and attend work as agreed upon. While genuine illnesses are understandable, regular patterns of absenteeism, especially on Mondays or Fridays, “may raise suspicion and lead to possible dismissals.”
The impact of sick-leave abuse goes beyond the individual’s wage and productivity. “Employers face organizational disruption and additional costs as they seek replacements or cope with work left undone,” explains Levy who said addressing this issue can result in significant savings for businesses, potentially adding 17% back to their “bottom line.”
The Labor Law Economist highlights that fraudulent medical certificates are “easy to obtain and may not even disclose the actual illness.”
Some employers have taken steps to combat abuse, such as implementing call-in policies requiring employees to notify them of absences with valid reasons.
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