Annual Leave and Sick Leave
November 12, 2018
From the 1st August the Workplace Relations Act 2015 introduced an amendment to the Organisation of Working Time Act 1997 and has amended Sections; 19, 20, 23; which set down the annual leave entitlements for employees. This amendment has the potential to impact both employers and employees significantly.
Accrual of Annual Leave during Sick Leave
The amendments to Section 19, 20, 23 of the Organisation of Working Time Act 1997 have introduced a legal requirement for the accrual of annual leave entitlements for employees during periods of certified sick leave.
Employees are now entitled to accrue annual leave whilst out sick and to carry over the leave accrued beyond the 6 months of the subsequent leave year, (as was previously prescribed in the Act) up to 15 months.
This means that the annual leave may be taken by an employee, absent due to certified sickness, up to 15 months after the expiry of the leave year in which the annual leave was accrued.
It is notable that this entitlement to accrue annual leave during periods of certified illness applies only to statutory annual leave and not to any leave governed by contractual arrangements.
Employers will now need to take the following steps:
- incorporate this change into their normal practice,
- ensure that any contracts, practices and policies reflect these additional entitlements.
- ensure that medical certificates are received for all relevant leave periods according to Company T&Cs
- accrue the cost of the leave earned in accounts going forward
- Include holiday pay where a long term sick person’s employment ends with the company
Employees are not entitled to pay when they are on sick leave, thus an employer should not agree to do so if requested.
Once the 15 month period has expired an employee is no longer entitled to be paid holiday pay due for that period.
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At MSS The HR People, we often get asked, “What exactly is HR advice?” It’s a great question — and one that cuts right to the heart of what we do every day for our clients. What Is HR Advice? HR advice is professional guidance provided to employers and managers on how to manage people in the workplace. Whether you run a small business with a handful of employees or are a scaling SME with growing staffing needs, the right HR support can help you stay compliant, avoid costly mistakes, and build a high-performing team. In this blog, we’ll break down what HR employer advice actually is, how to know when you need it, and what your options are for getting the right professional HR support - without hiring a full-time HR manager. It spans everything from recruitment and onboarding to performance management, employee relations, and employment law compliance. Good HR advice helps businesses stay compliant, make informed decisions, and avoid costly pitfalls. But more than that — great HR advice is practical, proactive, and tailored to your business needs. Types of HR Advice We Offer At MSS The HR People, we support clients with a broad range of HR issues. These include: Employee Relations – Managing grievances, disciplinaries, investigations, or conflict resolution. Performance & Conduct – Supporting managers with underperformance, absenteeism, or behavioural issues. Contracts & Policies – Drafting or reviewing contracts, handbooks, and HR policies to ensure legal compliance. HR Compliance – Advising on employment law updates and how to implement them in your business. Probation & Onboarding – Helping clients manage probation periods effectively and set new hires up for success. Redundancy & Restructuring – Providing guidance through challenging workforce changes. Everyday Queries – Whether it’s questions on annual leave entitlements, sick pay, or flexible working, no query is too small. What Do Clients Typically Contact Us For? Clients contact us when they: Need a second opinion or a clear interpretation of employment legislation. Are unsure how to approach a difficult conversation or situation. Want to ensure their HR practices are fair, consistent, and legally compliant. Are looking to reduce HR risk while improving employee engagement and culture. Have already worked out an approach and just want quick validation or a sounding board before taking action. Simply want quick, professional HR advice on tap. Why Is HR Advice Important? Irish employment legislation is constantly evolving - with updates to minimum wage, statutory sick pay entitlements, and gender pay gap reporting introduced so far this year – and it’s only April! Business owners are expected to keep up with these changes, ensure compliance, and handle any workplace issues appropriately. Getting it wrong can be costly. A poorly handled disciplinary, a missing contract, or a misstep during a redundancy process can result in: WRC (Workplace Relations Commission) complaints Penalties or fines Damaged reputation Low staff morale or high turnover HR advice ensures you don’t fall into these traps. Instead, it gives you the confidence to act decisively and fairly - whether you’re growing your team or managing a tough issue. How Do I Know If I Need HR Advice? Here are some of the most common signs that your business needs HR support: 1. You're Hiring or Growing Your Team Bringing on employees is a big step for any business. It’s important to have compliant employment contracts, solid onboarding processes, and clear expectations. If you're unsure where to start or want to do things right from the get-go, expert HR advice can set you up for success. 2. You Don’t Have Written HR Policies All employers should have clear policies in place such as an employee handbook, disciplinary procedure, grievance policy, absence management, and remote working guidelines. If you don’t have these in writing (or haven’t updated them in years), it’s time to get professional help. 3. You're Dealing with a Staff Issue If you're facing challenges like persistent absenteeism, underperformance, or conflict between employees, it can be difficult to know how to handle it correctly. HR consultants can guide you through fair processes, help you document everything, and reduce your legal risk. 4. You Want to Avoid a WRC Complaint If you’ve had a close call - or just want to make sure you're doing everything by the book - getting HR advice is a proactive way to protect your business and reduce the chance of ending up in front of the WRC. Not all HR support is created equal however, so it’s important to work with a provider who delivers straightforward, practical advice tailored to your business size and sector. The best HR Advice providers take a proactive (not just reactive) approach, providing practical tools like compliant templates, letters, and policies, along with training or coaching for managers when needed. Depending on your needs and budget, there are several ways to access HR support. One-off HR advice is ideal if you're dealing with a specific issue, such as a staff dispute or restructure, and need expert guidance. An HR health check or audit is a smart starting point if you're unsure about compliance, offering a full review of your contracts, policies, and procedures with a clear action plan. For ongoing peace of mind, many businesses opt for outsourced HR support, giving them access to expert advice without the cost of hiring in-house. Retained HR consultancy offers regular, tailored support for businesses that are growing or managing complex employee relations on an ongoing basis. How to Get Started Start by assessing your current situation. Do you need help with a one-off issue, like a disciplinary meeting? Or are you looking for ongoing HR support for your business? Make a list of your concerns: lack of policies, recruitment headaches, managing performance, or dealing with absence or sick leave. The more clarity you have, the more focused your consultant’s advice can be. Ready to Take the Headache Out of HR? As we have identified, getting HR advice isn’t just about avoiding fines - it’s about creating a better place to work, retaining great talent, and freeing you up to focus on growing your business. At MSS – The HR People, we offer expert HR support for employers that’s clear, compliant, and commercial. From one-off consultations to fully outsourced solutions, we’re here to help you get HR right. 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