Asda reportedly considering stricter sick leave rules

The supermarket giant Asda has reportedly announced plans to change its current sick leave policy as it seeks to improve the customer experience and restore operational focus. 

According to The Telegraph, the company plans to roll out stricter disciplinary rules around sickness leave, leaving staff at greater risk of losing their job for taking consecutive periods of leave. 

Although no changes have so far been implemented, employees have reportedly voiced strong opposition, citing unnecessary stress and a decline in company culture. 

The proposal has drawn scrutiny not just for the retailer’s disciplinary measures, but also for the broader impact on workplace confidence and engagement.

What is Asda’s planned sick leave policy?

On Monday, Asda announced its plans to “crackdown” on sick days by extending the period before an absence record is reset.

Currently, an employee’s absence record is reset after a six-month period, but this would be extended to 12 months under the new rules. However, no changes have been carried out yet.

“We are consulting with elected colleague representative groups on a proposal to adjust our short-term absence policy.” an Asda spokesperson told The Telegraph.

“The proposal is at an early stage and was shared in confidence with these groups as part of the consultation process. No decisions have been made, and no changes have been implemented.”

While the company didn’t provide a reason for these changes, it’s possible that they’ve been made in response to sick leave reforms under the Government’s Employment Rights Bill, which will give employees rights to statutory sick pay (SSP) from the first day of absence, rather than after the current three-day waiting period.

Why are the new rules being criticised?

While nothing has been enforced yet, staff haven’t held back on their disapproval over Asda’s sick leave plans, particularly as it could increase the risk of workers being dismissed for repeated periods of sickness.

A source also told The Telegraph that the new rules will be placed to “put the scarers on people”, when morale was apparently already low.

Asda’s organisational culture and morale have been scrutinised in recent years, with multiple stories of low confidence, poor employee engagement, and other ongoing issues hitting the headlines in the last year.

In March 2025, the company came under fire after scrapping annual bonuses for 10,000 managers due to its underperformance in the market — a move that one former senior employee said would cause morale to hit “rock bottom”.

The pressure didn’t ease in the months that followed, as the retailer then proposed a new round of redundancies. Unsurprisingly, just 47% of Asda staff said they felt confident in the company’s long-term plans last year, despite the CEO being paid a £10m salary last year.

Heavy-handed sick leave rules could backfire for SMEs

Sick leave reforms under the Employment Rights Bill mean smaller businesses will face higher costs, as they will have to pay SSP from the first day of absence.#

And with sick leave continuing to rise — reaching an average of nearly two full working weeks (9.4 days) in the last year — the cost impact could be significant.

It’s a tough balancing act for small businesses. So how can employers maintain staff satisfaction and protect already narrow profit margins from rising absence costs?

Gary Ross, Founder & CEO at business insurance provider Blip, advises that companies should focus on building trust rather than tightening rules, and that extending absence and accelerating disciplinary actions is “just going to ruin morale when you need your team the most”.

“Creating a culture where staff feel they have to drag themselves in when they’re unwell just creates bigger problems down the line.” he adds. “Keeping things fair, staying open with your people, and protecting the trust will always beat a heavy-handed approach.”