You could consider using NETWORKDAYs to establish days between absences, eg:
E1: Absence
E2: =--((NETWORKDAYS(SUM(C1)*(A1=A2),C2,holidays)-1)>1)
copied down
(red section being optional - referring to public holidays)
you can then use that column for your final calc, ie:
If you have multiple people to differentiate you can of course use SUMIF etc...or even use a Pivot Table with Calculated Field to generate Bradford Factor ie =Absence^2*'Total Days Absent'
EDIT:
for sake of clarity I have uploaded an attached proof of concept
NOTES:
-- I've assumed XL2007 in the above - if not you would of course need to activate Analysis ToolPak (Networkdays) to use the above
-- I've assumed data is sorted by Date, grouped by Individual
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