The recent enactment of the Sick Leave Act 2022 (the Act) sees the introduction of a statutory sick pay (SSP) scheme in Ireland for the first time. Qualifying employees will now be entitled to paid sick leave for up to three days a year with a planned increased entitlement on a phased basis as follows:
- 5 days paid leave in 2023
- 7 days paid leave in 2024
- 10 days paid leave in 2025
There is provision to vary by Ministerial order the number of statutory sick days per year having regard to:
- the state of the economy generally, the business environment and national competitiveness
- the state of society generally, the public interest and employee well-being
- the potential impact, including the potential for any disproportionate or other adverse impact that the making of the order will have on the economy generally, specific sectors economy, employers, or employees
- annual and quarterly data on earnings and labour costs as published by the Central Statistics Office
- expert opinion, research, national or international reports relating to the matters specified at paragraphs (a) to (d) that the Minister considers relevant
- the views of employer representative bodies.
The Minister can make the first order 12 months following the commencement of the Act and at 12 month intervals after that. The number of days cannot be reduced below 3 or increased by more than 3 from the previous order.
SSP calculation
Under the scheme, employers will be responsible for paying up to 70% of the employee’s normal wages during their period of paid sick leave, subject to a daily maximum of €110. The new scheme operates as a minimum entitlement and will not prevent employers from offering better sick pay provisions to their employees.
Who is entitled to SSP?
To qualify for SSP, an employee must have completed 13 weeks continuous employment service and submit a medical certificate signed by a registered medical practitioner in respect of the leave dates.
Records
Employers are required to retain records of all employees who avail of SSP for a 4 year period. Failure to comply with this obligation exposes employers to an offence and class C fine.
Exemption
The Labour Court may exempt an employer from the obligation to pay an employee SSP in certain limited circumstances such as where the employer's business is experiencing severe financial difficulties.
Next Steps
The Act applies to all organisations regardless of size and head count. Failure to introduce a SSP scheme will expose employers to a complaint to the Workplace Relations Commission. Employers should update their policies and procedures to ensure the right to SSP is provided for and that HR personnel are familiar with receiving and vetting such requests. Record systems should also be updated to ensure that the additional record keeping responsibilities are captured pursuant to the Act.
For more information, please contact Patrick Watters or your usual contact in the Employment & Benefits Team.