Merrill Lynch hit the news earlier this week when word leaked out that the firm has told US employees that it was slashing their annual sick leave tolerance from 10 periods of 4 days. Anyone absent for 4 days or more, it seems, could now lose pay. And termination could be on the cards after just 9 days. (Can you imagine this being adopted in Europe ? In France and Germany you seem to only have to WORK 9 days a year!)

Anyway, Gawker.com got hold of a copy of the guidance e-mail memo said to have been sent to Merril's US managers on this subject. Here's what the website published:

'Attendance Guidelines (Effective May 14, 2007)

A good attendance record and demonstrated reliability is one attribute of successful performance and is expected of all employees. These guidelines are in place to enable managers to address and foster improvement when an attendance problem has been demonstrated.

Each day an employee misses work is considered an absence. Employees are considered absent when they miss one-third or more of a workday.

It is the employee's responsibility to contact their manager within one hour of their scheduled start time to report any absence, and failure to do so may result in disciplinary action. Absence without notice for two consecutive days is grounds for termination of employment.

An absence is recorded as excused under this policy only if it is:

a) a pre-approved vacation or an approved personal day;

b) an approved leave of absence under Merrill Lynch policy;

c) an absence covered by any applicable federal or state law.

Outlined below are suggested guidelines for managers to address absences based upon the employee's work schedule. Management may accelerate the action steps described in these guidelines when patterns of attendance problems have been identified (including, but not limited to, repeated absences the day before and/or after a holiday or weekend; unacceptable level of absences over time with no demonstrated
improvement; absences surrounding vacation).

Employee Status: Full Time
Absences in a 12-month Period /Action

Up to 3 days - Acceptable attendance:

No action.

4 to 6 days - Questionable attendance:

Manager / employee discussion or written communication from manager to employee stressing importance of good attendance; reviewing impact on performance; and describing future consequences including termination of employment. Non-payment may result.

7 to 8 days - Poor attendance:

Written communication from manager to employee reviewing impact on performance and warning that failure to improve will result in immediate termination of employment. Non-payment should result.

9 to 10 days - Unacceptable attendance:

Resulting in termination of employment'.

Now Merrill points out that this policy adjustment merely puts the firm in line with competitors in the US, and says that its serious illness policy can cover staff for up to 26 weeks paid leave. Having said this, one has to wonder about the timing of such a policy change. With record profits and bumper bonuses for many senior staff, this move is only likely to p.ss off many of the firm's loyal US more junior staff - those who probably wouldn't be the type to throw dodgy sickies anyway. Merrill would do well to remember that there's nothing like good motivation. And this seems nothing like good motivation.

Please use the 'E-Mail' button immediately under the article title to send this item to a friend.

Press here to comment on this story >>

Today in Life: The Market is in Your Hands >>

TODAY

• Meet Goldman Sachs' Newest Managing Directors
• Best Place To Work Update
• Bank Tells Staff To Knock Off Early To Make Babies

THIS WEEK

• Best Place To Work 2010 Latest
• Top Firm Told To Give Up Bonuses
• 'Sorry - But Christmas Is Cancelled'