Enterprise minister Leo Varadkar has received government approval for new laws to give all workers the right to paid sick leave.
The Sick Leave Bill 2022 has been approved by Cabinet and will legislate for a statutory sick pay scheme for all employees, phased in over a four-year period.
Sick pay will be paid by employers at a rate of 70% of an employee’s wage, subject to a daily maximum threshold of €110.
According to the minister, the daily earnings threshold of €110 is based on 2019 mean annual salary of €40,900. It can be revised by ministerial order in line with inflation and changing incomes.
The new scheme will start with three days per year once the Bill is enacted in 2022 and for 2023, rising to five days in 2024, seven days in 2025, and ten days in 2026.
In Association with
Officials estimates that paid sick leave is provided to about half of all employees through their employment terms and conditions, though that estimate includes virtually all public sector workers, where sick leave is endemic.
Sick leave paid for by the employer will complement Illness Benefit. Government thinking on introducing statutory entitlement to three days of sick pay in the coming months is to fill the gap in coverage caused by Illness Benefit waiting days.
It is expected that the Sick Leave Bill will provide that an employee must obtain a medical certificate to avail of statutory sick pay, and the entitlement will be subject to the employee having worked for their employer for a minimum of 13 weeks.
Once entitlement to sick pay from the employer ends, employees who need to take more time off may qualify for illness benefit from the Department of Social Protection, subject to PRSI contributions.
The minister said the scheme is being phased in to help employers to plan ahead and manage the additional cost.
“The government recognises that many businesses, particularly small businesses, have had a particularly difficult couple of years and continue to face challenges,” said Varadkar.
“There has been extensive consultation with employers and unions on these measures, and the scheme is comparable with those in other advanced EU economies.”
The Tánaiste added: “The pandemic exposed the precarious position of many people, especially in the private sector and in low-paid roles, when it comes to missing work due to illness.
“No one should feel pressured to come to work when they are ill because they can’t afford not to. Ireland is one of the few advanced countries in Europe not to have a mandatory sick pay scheme.
“We need to make sure that safety net is there for all workers, regardless of their job. It has to be one of the legacies of the pandemic. It will be available to all workers, regardless of their illness.”
Sick leave paid for by the employer is being phased in as follows:
+ 2022 – 3 days covered
+ 2024 – 5 days covered
+ 2025 – 7 days covered
+ 2026 – 10 days covered
In a statement, the Department of Enterprise, Trade and Employment said the rate of 70% and the daily cap will ensure excessive costs are not placed solely on employers, who in certain sectors may also have to deal with the cost of replacing staff who are out sick at short notice.
The Bill will expressly state that the new legislation does not prevent employers offering better terms or unions negotiating for more through a collective agreement.
Varadkar stated: “I fully understand that many businesses are struggling at the moment with additional costs because of the Russian invasion of Ukraine, as well as the aftermath of Covid and Brexit and the disruption both have brought.
“That is why we have chosen to phase this in, in this way. We have made a big effort to design the scheme so that it’s easy to use, fair and affordable for employers.
“We’ve done a lot of consultation on this, with representatives from both the employee and employer side. Although I know some will think it goes too far and others that it doesn’t go far enough, I think it has struck a fair and reasonable balance.”
