Doctors may no longer be able to issue sick notes for workers who are on long-term leave from their jobs, a new review says.
The Government review has recommended that family GPs still certify up to four weeks of absence but employers should be able to refer those off sick for longer than this to an independent panel of doctors.
The review also suggests setting up a service to help those on sick leave find more appropriate jobs.
According to the Department of Work and Pensions (DWP), around 140 million working days are lost to sickness absence each year.
While most people return to work, every year 300,000 people drop out of work onto health-related state benefits.
This places an economic burden on employers, taxpayers and the individuals themselves.
DWP says each year employers spend around £9bn on sick pay, while health-related benefits cost taxpayers £13bn.
Reforms are expected within the benefit system and to the Employment and Support Allowance.
Earlier this year the Government asked Dame Carol Black and David Frost to lead a review of sickness absence in Great Britain, to examine if long-term sickness absence could be reduced to prevent people from dropping needlessly out of the labour market.
It claimed that if all the recommendations are accepted it could save £400m a year for employers and £300m a year for the Government, while boosting economic output by over £1bn a year.
A DWP spokesperson said: "The Government is committed to supporting more people with health conditions to work.
"The economy loses £15bn in lost economic output each year due to sickness absence and we cannot continue to foot this bill.
"But even more important is the impact of needless inactivity on people's lives; the damage to their aspirations and their health and the damage to their families and communities."
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