Most importantly, companies subscribe to this model because it involves lower overheads — the business has fewer employees and so is able to reduce the financial and administrative burden which accompanies things like
paid sickness absence, disciplinary and grievances hearings, sick - pay, maternity, paternity and parental rights, and pension auto - enrolment.
While some employers have
paid benefit plans for
sickness, bereavement and other leaves of
absence, this is not required by the ESA.