Keeping up to date with the most recent statutory Sick Leave Bill

The introduction of statutory sick pay is an important step for employers and employees and is imminent, although no specific date has been provided as yet. The Statutory Sick Leave Bill, which was originally to commence at the beginning
of 2022, only just passed through the first stage of the Seanad on the 18th May 2022. It still has a number of steps to progress through before being signed into legislation. This allows time for further debate and further updates.

For now, we have outlined below all the key points that we know from the initial Sick Leave Bill and the most recent updates from the 18th May 2022.

Key Points:

When the scheme commences, a qualifying employee has three days sick pay per annum, rising to five days in 2024, seven days in 2025, and 10 days in 2026.

• An employee will be entitled to sick pay on a day in which they would ordinarily work but cannot due to illness or injury. The employee must provide a sick cert from a registered medical practitioner in an official language of the state to confirm that the employee is unable to work.
• The employee must have worked with the employer for at least 13 weeks before being entitled to receive any amount of Sick Leave Pay (see update below).
• Part-time employees or employees who work irregular hours will receive statutory sick pay for days they ordinarily work.
• Payment for Statutory Sick Pay is 70% of the employees’ gross normal earnings up to a maximum of €110 per day. This rate may be reviewed by the Minister in line with inflation and changing incomes. This will be payable by the employer.
• The Minister of Enterprise, Trade & Employment may have the power to amend the
  • Number of days the employee is entitled to
  • The percentage rate that is applied
  • The upper earnings maximum cap (currently €110 per day)

Based on the following reasons:

• The health of the economy, the business environment and national competitiveness
• Potential impact on the economy, specific sectors of the economy, employers or employees
• Annual & quarterly data on earnings and labour costs as published by the CSO
• Expert opinion, research, national or international reports regarding the economy
• Views of the employer representative bodies and trade unions
• Such other matters that the minister considers relevant
• The employee cannot be penalised for exercising their rights for the sick leave pay.

Most recent updates to the Statutory Sick Leave Bill from 18th May:

1. Where an employee ceases employment with their employer and becomes an employee again no longer than 26 weeks after the date of cessation, then the employees’ period of service will continue from before they stopped working with that employer.
2. The Minister can also decide to amend the number of statutory sick leave days based on the state of the society generally, the public interest and the employee well-being.

While these are the key points and most recent updates, we are expecting further updates as it continues to progress through the Seanad before being signed into legislation. We therefore encourage employers to start planning ahead of the impending legislation as once it is signed in, employees who fit the threshold will automatically be entitled to a minimum of three days sick leave pay.

If you have any queries or concerns regarding the introduction of this scheme, please contact Tom Smyth & Associates, Hardware Association Ireland, or your local politician as its not too late to help shape the final legislation.

Aoife Walsh, HR Consultant, Tom Smyth & Associates, T: 021-4634154 / M: 086-1303609 W: www.tsaconsultants.ie

This Business Support article featured in the May/June 2022 issue of The Hardware Journal.