Sick notes are to be replaced with "fit notes" in a bid to cut down the £100 billion cost to the economy of workers' ill-health, the Government announced.
The system of doctors giving workers a sick note if they are ill has not changed since the NHS was created in 1948.
Ministers said that, under plans to "significantly reduce" ill-health at work, doctors will instead issue fit notes which will specify what workers are able to do.
Trials are being held to replace the paper sick notes with electronic fit notes and the changes are expected to be made by 2010.
James Purnell, Work and Pensions Secretary, said the aim was part of moves to give more help to workers and to intervene as early as possible.
"Everyone has the right to work and we want to design a fair system which supports people so they can work when they are able," said Mr Purnell.
Alan Johnson, Health Secretary, said: "Sick leave costs an estimated £100 billion per year, but helping people stay in work does not just have an economic imperative, it has a moral and social one too."
The government also announced a number of other measures today including a review of the health of NHS workers in a bid to improve their wellbeing.
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