IKEA has cut sick pay for staff who haven't had the Covid vaccine and need to self-isolate.

The Swedish retail giant acknowledged it was an 'emotive topic' but said it would consider the issue on a 'case-by-case basis'.

Like many companies IKEA, which employs about 10,000 people in the UK, has been dealing with a surge in staff absences.

A spokesperson said: "Fully vaccinated co-workers or those that are unvaccinated owing to mitigating circumstances which, for example, could include pregnancy or other medical grounds, will receive full pay.

"Unvaccinated co-workers without mitigating circumstances that test positive with COVID will be paid full company sick pay in line with our company absence policy.

But the spokesperson added: "Unvaccinated co-workers without mitigating circumstances who have been identified as close contacts of a positive case will be paid Statutory Sick Pay. We know this is a highly emotive topic and we appreciate there are many unique circumstances. As such, all will be considered on a case-by-case basis."

IKEA is not alone in taking a hard line on the issue. Wessex Water is also implementing sick pay cuts from this week. Supermarket Morrisons has already cut sick pay terms and the banking firm Citigroup has introduced a 'no jab, no job' policy.

A Wessex Water spokesperson said: "Absences due to Covid have doubled in the last week, so we need everyone to be available so we can continue to provide uninterrupted essential water and sewerage services."

Unvaccinated workers at IKEA could now stand to receive as little as £96.35 a week - which is the Statutory Sick Pay (SSP) minimum.

But Ben Willmott, head of public policy at the Chartered Institute of Personnel and Development, said the changes might encourage some staff not to test themselves or self-isolate because they could not afford time off work.

He warned companies: "You would have to manage it on a case-by-case basis because of legal risks."