74. Fake Sick Leave - Detect & Prevent Abuse
Stop Dishonest Absenteeism Without Hurting Trust
Imagine this - An employee calls in sick frequently, but coworkers report seeing them out socialising the same day. Another files a workplace injury claim through the Accident Compensation Corporation (ACC), yet surveillance footage shows them engaging in physically demanding activities outside of work. Meanwhile, a long-term employee suddenly takes extended sick leave, but inconsistencies in their medical documentation raise suspicion. Over time, you notice -
Productivity suffering as team members cover for absent coworkers.
A rise in sick leave requests, as others see how easily the system can be manipulated.
Increased business costs from unnecessary paid leave and fraudulent ACC claims.
Resentment among honest employees who feel they are picking up the slack.
Fake sick leave and injury claims are more than just an inconvenience—they create financial strain, damage team morale, and undermine trust between employees and management. If left unchecked, they can lead to a culture of dishonesty and entitlement.
HR psychology tells us that employees often fake illnesses due to workplace dissatisfaction, burnout, or perceived unfair treatment. Some may also exploit weak oversight in sick leave policies. However, a well-balanced approach of fairness and accountability can minimise fraudulent absenteeism while maintaining trust with genuinely sick employees.
The challenge? How do you detect and prevent false sick leave claims while ensuring fair treatment for employees with legitimate health concerns?
The Solution – A Three-Part Approach - Identify, Investigate, and Prevent
Managing fraudulent sick leave and injury claims requires early detection, a structured verification process, and proactive policies that discourage dishonesty. Here’s how to ensure leave policies are used fairly and responsibly.
1. Identify Patterns and Warning Signs of False Sick Leave
Since not all questionable sick leave claims are fraudulent, managers must first recognise red flags while avoiding assumptions.
A. Recognise Common Indicators of Fake Sick Leave or Injury Claims
Frequent last-minute sick days, often before or after weekends or holidays.
Patterns of absence linked to workload changes, deadlines, or performance reviews.
Social media activity showing the employee engaging in non-sick behaviour while on leave.
Conflicting information—employee reports one illness but later gives a different explanation.
Vague or inconsistent medical documentation.
Red Flag - If an employee frequently calls in sick on Fridays and Mondays, but coworkers report seeing them at social events, further verification may be needed.
B. Monitor the Impact of Absenteeism on Productivity and Team Morale
Are workloads unfairly distributed due to repeated absences?
Are other employees expressing frustration or suspicion?
Does absenteeism correlate with workplace conflicts, performance issues, or disciplinary action?
HR Psychology Insight - Employees who feel unrecognised or overworked are more likely to fake sick leave as a form of disengagement.
C. Check for Questionable ACC Injury Claims
Does the reported injury match the nature of the employee’s job duties?
Are there inconsistencies between medical reports and the employee’s activity?
Does the injury claim coincide with known workplace dissatisfaction?
Red Flag - If an employee claims a back injury but is later seen lifting heavy objects outside of work, the claim may be fraudulent.
2. Investigate Suspicious Leave or Injury Claims Professionally
· Once a questionable claim is identified, a structured and fair verification process is necessary to avoid wrongful accusations.
A. Request Documentation for Extended Sick Leave
· Require medical certificates for absences beyond a certain duration.
· Ensure doctor’s notes specify the nature of the illness or injury.
· Follow up with the employee to check on their recovery progress.
HR Best Practice - Companies that require medical certification for sick leave reduce absenteeism rates by discouraging dishonest claims.
B. Conduct Return-to-Work Interviews
Ask employees about their illness or injury and confirm they are fit to resume work.
Offer accommodations if needed for genuine health concerns.
Observe body language and responses for inconsistencies.
Red Flag - If an employee struggles to explain their illness or suddenly has a different excuse, further verification may be needed.
C. Investigate Suspected Fraudulent ACC Claims
Check whether the injury was reported immediately after the incident or if there was an unexplained delay.
Ensure the injury aligns with workplace risks—if the claim involves a type of injury not typically associated with the employee’s role, further inquiry may be needed.
If inconsistencies arise, liaise with ACC to verify details and medical assessments.
HR Psychology Insight - Employees who exaggerate injuries often assume management won’t investigate—clear policies and follow-ups deter false claims.
3. Prevent Future Sick Leave and Injury Fraud with Strong Policies
To ensure long-term workplace integrity and fairness, companies must create a leave policy that discourages dishonesty while supporting genuinely sick employees.
A. Implement a Clear and Enforceable Sick Leave Policy
Set a threshold for requiring medical documentation (e.g., more than two consecutive sick days).
Define consequences for fraudulent claims, such as loss of pay or disciplinary action.
Ensure all employees are aware of and agree to the policy.
Red Flag - If sick leave rules are vague or inconsistently enforced, abuse is more likely to occur.
B. Encourage a Culture of Honesty and Accountability
Create an open-door policy where employees can discuss personal or medical concerns without fear.
Provide wellness programs and flexible work options to reduce the temptation to fake sick leave.
Recognise employees for hard work to prevent disengagement.
HR Best Practice - Employees who feel supported are less likely to fake sick leave due to burnout or frustration.
C. Use HR Technology to Track Leave Trends
Monitor patterns of absenteeism through HR software.
Identify repeat offenders or employees with frequent “coincidental” sick days.
Ensure fair distribution of workloads to prevent resentment-driven absenteeism.
Red Flag - If some employees repeatedly take sick leave while others never do, workplace fairness and workload balance should be reviewed.
Reflective Scenario – What Would You Do?
An employee takes multiple sick days every month, often before long weekends. A coworker reports seeing them on social media attending a party on one of those “sick days.” Meanwhile, other employees feel resentful about having to cover extra work.
Using the strategies above, you might -
Meet with the employee privately to discuss their frequent absences.
Request medical documentation for their leave claims.
Ensure the employee understands the company’s sick leave policy and consequences of dishonesty.
Offer wellness programs or workload adjustments if burnout is a factor.
By detecting leave abuse early, setting clear expectations, and fostering a culture of honesty, businesses can reduce fraudulent claims while supporting genuine health needs.
Golden Nugget - "Sick leave policies should protect employees—not be exploited by them. Fair policies, accountability, and trust keep absenteeism under control."
By identifying red flags, verifying claims professionally, and implementing fair yet firm policies, SME leaders can prevent fraudulent sick leave while maintaining a supportive work environment for genuinely ill employees.