Many companies are struggling to manage levels of staff absence, according to a survey by HR firm Jaluch.

The poll of businesses in the south of England revealed that 45% have seen a rise in cases of employees calling in sick in the last 12 months, with 20% blaming generous company sick pay policies as a disincentive for people to return to work.

"Employers are experiencing a lot more long-term sickness absence due to illnesses like stress or depression," said Helen Clarke, managing director of Jaluch.

"The problem is exacerbated because mounting employment legislation is leaving bosses reluctant to manage staffing issues."

Jaluch is urging companies to adopt a clear absence management policy and to hold return-to-work interviews to keep absence rates under control.