The Act is aimed at reducing numbers claiming incapacity benefit by one million. Employees will be measured on what duties they will be able perform when deciding if they should return to work. To minimise staff absence employers may have to take steps to accommodate staff returning to work after illness or injury by providing flexible working arrangements or adapting office equipment to suit disabled people.
The Act will also force employers to review their group income protection policies, which cover absent employees' salaries, to reflect the changes in legislation.
Richard Munro, managing director of PMI Health Group, said: "Employees could suffer financially if they are not properly covered against illness or injury. We would advise any business to seek professional advice to ensure their cover still meets their contractual obligations."
However, 75% of employers who were aware of welfare reform welcomed the Act, with 70% planning to make arrangements to accommodate disabled employees and 46% considering introducing home working arrangements.
Businesses ill-prepared for welfare reform
More than half of UK employers (56%) are unaware of the Welfare Reform Act, which may force them to review their flexible working arrangements or change their group income protection policies.
