Sick Leaves Paid or Unpaid

Many small and large organizations today voluntarily offer their employees sick leaves while being paid. Others do not. Whether or not to pay employees for their time offs during sickness has been a debate since long. There isn’t any mandate defined for companies to give employees paid or unpaid sick leaves as yet. However, paid sick leaves must be added as a benefit to employee service ensuring no faulty practices are encouraged. Considering the advantages associated with offering paid sick leaves, it will certainly overshadow the reasons why one gives unpaid sick leaves. Have a look…

  • Enhances overall performance and efficiency

Paid sick leaves make sure that the employee’s productivity is not hampered. An unhealthy or sick employee feels insecure of the fact that he/ she on taking a sick leave will be asked to compromise with the pay. As a result, he/ she skip the idea of staying back at home and ensure presence in workplace. But, the illness never allows the employee to put in the required amount of efforts to accomplish the tasks assigned. This ultimately reduces their efficiency. While paid time offs permits them to recover faster.

  • Maintains a healthy environment

 A sick employee in order to avoid deduction from the compensation and other forms of penalties tend to transfer the illness to other healthier employees in the organization, directly or indirectly. On the other hand if they are offered paid sick leaves, they not only protect themselves from more serious infections and allergies, but also contribute in keeping their work environment healthy.

  • Controls attrition and promotes loyalty

Employees who are open to options for taking sick leaves switch jobs less frequently. The gesture of “we care” makes the employees feel valued and so instills loyalty in them. This also helps keeping their morale high and dedicates themselves into their services.

  • Offers a win-win situation

The policy of paid sick leaves gives employees a security of not losing a job and being able to inform rightly the reason of absence, without panic and distress. To employers who offer this benefit, it aids in saving recruitment costs, managing happier employees, manage business in someone’s absence by distributing responsibilities and more. Consequently, it becomes a win-win scenario for all.

Therefore, the dilemma of paying or not paying the employees in their sick days must not be a concern anymore. It is always fruitful to have a bunch of happy, healthy and productive employees in a company as they will only do more good to the business growth.

*Ideas shared by PayWheel– a payroll management system for SMEs.

We extend best-in class payroll solutions to take company’s process a level ahead. Our leave and attendance management software has been serving many prestigious clients in India since several years.