REFUSING to offer sick pay for the first three days of illness may not be the best way of reducing absenteeism, according to Croner Consulting.

The business information provider was responding to Tesco's latest personnel initiative. Richard Smith, Croner's employment law expert, said: "Absenteeism ranks in the top three concerns of employers, especially at this time of year when sunny days are a tempting excuse to 'pull a sickie'.

"But Tesco should consider that their new rules on sick pay have the potential to backfire. "Employees may feel they are being given the liberty to take a guilt-free day off knowing they are not getting paid, and levels of short-term absenteeism could even increase. And conversely it may convince them to take longer enough in order to qualify for sick-pay - Ed.

"Employers are legally obliged only to offer statutory sick pay and after that payment for sick days is at their discretion. "Although Tesco's new policy on sick pay is perfectly legal, many companies often find that a more generous scheme boosts morale and loyalty."

Mr Smith argued that employees do not have any grounds for complaint providing the sick pay policy is consistent with their contract of employment. "However, if an employer is thinking of following in Tesco's footsteps, they must consult their employees first.

"Failure to do so could result in employees suing for loss of wages, or constructive dismissal." Mr Smith believes there are other, less drastic ways to manage absenteeism and advises employers to introduce the following measures: * Take a serious approach to the subject and monitor the absence levels of all employees. * Make the employee aware that their absence has been noted and consider arranging a meeting to determine if they have any health/work problems. * Take disciplinary action if an employee is found to be taking sick days that are not genuine.