Is it taxes? Your taxes will go up or money will be missing in the budget (or you will need to get more debt).
Is it the employer? Wage suppression.
You haven't gained or won anything really. There's no free lunch.
I will make an exception though: If you make people stay home when they are sick, you may reduce sickness overall. However, if people spend their entire "Family Care Leave" on rugby matches and then illness strikes, it's not going to work.