The level of workplace absence rose for the first time in five years in 2003, with sick leave now costing UK businesses a massive £11.6 billion a year, new figures have revealed.

A survey conducted by the Confederation of British Industry (CBI) and insurers AXA found that the number of days taken off by UK employees increased by 10 million to 176 million last year, an average of 7.2 days per employee.

The cost of absence to firms works out at £475 per sick employee, with smaller businesses damaged far more by days taken off by key members of staff.

Worryingly, the number of ‘sickies’ taken by workers appeared to be on the rise, with an estimated 15 per cent of all absences believed to illegitimate.

The CBI found that over three-quarter of business bosses suspect employees of taking unwarranted long weekends by calling in sick on Mondays or Fridays.

With the lack of skilled staff in the UK workforce and small firms’ reliance on a few key individuals, the figures will make alarming reading for entrepreneurs.

Although the level of absence has edged down in recent years, the number of stress-related days off have soared, with employers warned they could be taken to court if they do not make working conditions more employee-friendly.

John Cridland, deputy director-general of the CBI, said that firms understand that the majority of absence is due to genuine minor sickness.

“But absence is a serious and expensive concern that is on the increase. This rise has been caused by a growing level of service sector absence that may be the direct result of the tough year endured by the sector.

“Unwarranted long weekends and staff ‘pulling sickies’ are taking their toll on the UK’s ability to absorb the enormous cost of absence.

“With employees ‘pulling sickies’ adding £1.75 billion to last year’s absence bill, companies will be concerned about staff awarded themselves day off during this summer’s Euro 2004 football tournament,” he said.