News

With 2021 drawing to a close, businesses must now look forward as to what is to come in 2022 and one change that is likely to come in 2022 is the introduction of  a compulsory sick pay scheme which will affect all employers.

Unlike many European jurisdictions, Ireland has never had a sick pay scheme like this. Currently an Irish employer is not obliged to pay employees while they are sick which is about to change due to the Sick Leave Bill 2021 which was published recently and provides for a comprehensive Statutory Sick Pay scheme (SSP).

The key points for employers to note in relation to this sick pay scheme are as follows:

1. While the number of eligible days per year will start at a low level, the Government intends that this will increase to two working weeks by the year 2025.

2. SSP will be capped and an employer will only be obliged to pay up to 70% of wages, subject to a cap of €110/day. 

3. The Government will not “top up” the employer’s contribution to 100%.

4. Employees will have to have at least 13 weeks of continuous service in order to be eligible.

5. Employees will be obliged to provide a medical certificate in respect of each day of Statutory Sick Leave.

6. If an employer maintains it cannot afford to discharge its SSP obligations, an exemption can be granted by the Labour Court.

7. If an employer already provides more favourable sick leave benefits to an employee, they will not be obliged to comply with the SSP rules.

So what should employers do now?

Employers should review any existing sick pay schemes/ policies to check whether the new rules will affect/ change these.

Sick Leave Bill 2011 – https://enterprise.gov.ie/en/Legislation/Sick-Leave-Bill-2021.html