When an employer pays Statutory Sick Pay (SSP) a formula can be applied to determine how much, if any of it, can be reclaimed.
This scheme, known as the Percentage Threshold Scheme (PTS), was designed to compensate employers for instances of higher-than-average sickness absence in their workforce.
However, as of 6 April 2014, this reclaim mechanism is being abolished because the Government considers it does not promote effective sickness management.
Instead the money is to be reinvested in a new Health & Work Service enabling sick employees to return to work more quickly.
Employers will have until the end of 2015/16 to recover SSP paid for sickness absences occurring before the end of 2013/14 however after this point they will have lost the opportunity.