It has been the case for decades in the Western World that an employee faking sickness has been sacked. It is after all fraud. And you wont get a reference for a new job either. Many industries telephone to get further details of the illness and ask for a doctor's certificate. And in medicine we have in the past sent people round to the employee to check on them.
So why I dont understand why this is a matter for the regulator as opposed to the employer, I fail to see what the fuss is about. Why are you condoning fraud and lying in an industry that relies on honesty and trust?