Sick Leave Bill 2022
Sick Leave Bill 2022
The new legislation, which is set to give all employees a right to be paid sick leave, for the first time in Ireland, was approved by the cabinet last week (29th March 2022) and will now proceed to be passed in the Dáil probably before the summer recess.
To date, most employers have had no obligation to pay employees whilst out sick. Some employers may operate discretionary sick pay schemes or none at all and there is no entitlement to Social Welfare Illness Benefit Payments for the first three days of sickness absence.
This legislation is targeted at providing a level of sick pay coverage primarily for low-paid employees who are possibly not entitled to any sick pay or Illness Benefit under their terms and conditions of employment.
The new Sick Leave Bill 2022 will be phased in over four years to assist employers with planning ahead for the cost and administration involved.
The new sick pay provisions will be phased in as follows;
Year No. Sick Days Entitled
2022 3 days
2024 5 days
2025 7 days
2026 10 days
Frequently Asked Questions
Is there is a threshold for entitlements?
Statutory sick pay will be paid by employers at a rate of 70% of an employee’s gross wages, subject to a maximum daily payment of €110.
Will the days need to be consecutive?
No, the days can be either consecutive or non-consecutive.
Is the number of days entitlement per year or per absence?
The entitlement as set down above is per calendar year and not per absence.
What if we already operate a sick pay scheme?
If you already operate a scheme you need to ensure that it is not less favourable than the new provisions. If it is not less favourable, then you do not need to adjust your existing arrangements. This may be significant where a sick pay scheme does not pay for the first three days.
How long does an employee need to be employed before qualifying?
An employee must be employed for 13 weeks before becoming eligible.
Will employees require a medical certificate?
Yes, any payment for absences will need to be supported by a medical certificate, even for one-day absences.
What can employers do to prepare for the legislation?
- Adjust budgets accordingly to reflect potential increases as a result of possible sick payments.
- Begin updating existing policies within contracts of employment and Employee Handbook, to reflect the new payments made and to highlight the requirement for medical certificates after one day’s absence in order to qualify for payment and to stipulate that any breach will be treated in accordance with the disciplinary procedure.
- If employers have not already done so, in line with their obligations under Working Time legislation, they should commence recording sickness records and medical certificates received/not received.
- Employers may want to consider introducing more structured absence procedures and introducing Return to Work Interview processes, in an effort to manage absences effectively and avoid any abuse of the sick pay scheme.
- Prepare a memo to highlight the introduction to employees.
When do we need to commence payments?
Confirmation will be made by the Government in due course.
If you need any guidance on the new sick pay entitlements, contact us today at (01)887690.
