Unlike most our European counterparts, Irish employees do not enjoy a statutory right to paid sick leave during periods of illness absence. Employers currently have the discretion on whether to offer paid sick leave as part of their overall benefits structure. This position is about to change however, following the recently published Sick Leave Bill 2021.
The Bill proposes a statutory employee sick pay scheme which, if passed into law, will commence on a phased basis in 2022. As currently drafted, employees with a minimum of 13 weeks continuous service will be entitled to a sick leave payment payable by their employer for up to a maximum of three days per annum. The Government has announced their intention to increase this benefit to a maximum of five days in 2023, seven days in 2024 and 10 in 2025.
The level of sick pay payable is unknown as the Bill makes provision for this to be determined and introduced by the Minister for Enterprise, Trade and Employment. General commentary indicates that a rate of 70% of normal wages capped at €110 per day is being contemplated by the Minister.
The Bill also makes provides a mechanism for employers who are experiencing financial difficulties to apply to the Labour Court for an exemption from the obligation to pay statutory sick leave. If successful, an exemption will be granted for a minimum of three months to a maximum of one year.
Failure to abide by the statutory sick leave entitlements will expose employers to a complaint actionable before the Workplace Relations Commission (WRC). If successful, the Bill empowers the WRC and/or the Labour Court to make an award of compensation in favour of the employee of up to 20 weeks' pay.
The Sick Leave Bill will be a major change for employers, especially for those who do not provide any form of sickness payments to their employees. In preparation for the implementation of this bill, employers should review their existing contracts and policy documents while also maintain a mindful eye over the anticipated level of payment to be introduced by the Minister.
