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MPs have called for a European-style scheme that gives employers an incentive to look after sick staff, it has been reported.

The group of MPs have suggested a financial initiative be introduced to improve organisations' health and safety performances, according to Personnel Today

However, a report by the work and pensions select committee has warned that government "exhortation" would not convince employers to improve employee wellbeing.

It cited a Dutch system were employers paid the first year of their staff's statutory sick pay in exchange for lower national insurance contributions.

"This system effectively incentivises employers to rehabilitate their staff and get them back to work," according to the report.

The MPs want the government and the insurance industry to join forces to fully investigate the case for employers' liability insurance and an individual employer's health and safety performance.

Dame Carol Black's report on workplace health, released last month, found that employee sickness and related factors cost the country £100 billion a year.

Ms Black, the national director for health and work, said that an "urgent and comprehensive" reform was needed.

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