Britain’s first Workplace Health System: what employers need to know.

The government has set out plans for Britain’s first Workplace Health System, placing employers at the centre of efforts to prevent ill health from forcing people to leave the workforce. The DWP outlined the initiative on Wednesday 23 September, following Sir Charlie Mayfield’s Keep Britain Working review.

The direction is clear. Sickness absence and health-related job loss are no longer seen as problems only for the NHS and the individual. Employers are expected to play an active part.

For HR teams and business leaders, the question is less “what must we do tomorrow?” and more “what will good practice look like, and how will we be measured against it?”

Why this is happening

Around 300,000 people with health conditions leave employment every year. The evidence on timing is stark: someone off work for four to six weeks has a 96 per cent chance of returning, but beyond a year fewer than half do.

The review found that one in five working-age adults are now out of the labour force. Employers lose an estimated £85 billion a year from sickness, staff turnover and lost productivity.

Sir Charlie frames this as an economic opportunity rather than only a welfare issue. He argues that returning workplace health to its 2014 level would be worth £57bn a year, without a large upfront government investment.

What the system involves

There are five main strands, and each one matters for employers in a different way.

A national employer standard. An employer standard is being created with the British Standards Institution (BSI). It isn’t a legal requirement, but standards like this often become the benchmark that clients, insurers, investors and tribunals use to judge whether an organisation acted reasonably.

Affordable support for smaller firms. Pooled buying and insurance routes are planned so that good workplace health support isn’t only available to big companies. In Hull, a buyers’ pool is letting local businesses access occupational health services at the same prices as large corporates. SMEs that have assumed occupational health is out of reach should look again.

Measurement and visibility. A new Workplace Health Intelligence Unit will track sickness absence, return-to-work outcomes and disability participation, making workplace health performance visible for the first time. Work and Pensions Secretary Pat McFadden said that “too many employers have no way of knowing whether they are getting this right.” Employers should expect more attention on their data.

Local testing. Regional vanguard areas are testing new approaches with employers, unions and disabled people. In South Yorkshire, this includes independent case workers based part-time within businesses to support employees with health concerns.

Health checks for employees (proposed). Health “MOTs” at the start of employment and at other trigger points remain a proposal for phased piloting, not an obligation. The review stresses that individual health data would not be shared with employers and suggests a trusted intermediary should hold it.

The compliance picture

None of this replaces existing law. It raises expectations about how well employers meet obligations they already have.

Equality Act 2010. The duty to make reasonable adjustments for disabled employees remains the legal backbone. The system’s emphasis on stay-in-work and return-to-work plans lines up closely with it. Well-documented adjustments and phased returns are good practice and your best evidence if a claim follows.

Data protection. Health information is special category data under UK GDPR. If health checks are piloted, the design points to employers receiving outcomes or recommendations, not medical records. Review your privacy notices, retention periods and who can access absence and occupational health information now.

Sickness absence policies. Many policies are built around trigger points and formal warnings. The new approach favours early, supportive contact. Policies that are purely procedural may look out of step once the national standard is published.

Practical steps for HR now

• Audit your absence data. Can you say how many people went on long-term sick leave last year, how many came back, and whether they were still in work six months later? If not, start measuring.
• Train line managers. Early, human contact in the first days and weeks of absence makes the biggest difference, and managers need the confidence to do it well. A phone call usually works better than a text.
• Review access to occupational health. If cost has been a barrier, look for local pooled schemes or insurer-backed options, especially in vanguard areas.
• Refresh return-to-work processes. Build in phased returns, adjusted duties and written plans agreed with the employee.
• Check your data governance. Map where health information sits in your organisation and who can see it.
• Watch for the BSI standard. When it’s published, benchmark your policies against it early rather than waiting for clients or insurers to ask.

The bottom line

The Workplace Health System doesn’t create a new wave of legal duties overnight. It does signal a shift in what “good” looks like, and a future in which employers’ performance on keeping people in work will be measured and visible.

Organisations that act early will be better placed to comply, retain skilled staff and cut the cost of avoidable absence. That means supportive absence management, proper occupational health access and careful handling of health data.

This article is general information, not legal advice. Employers should take specific advice on their own policies and obligations.