The new legislation requiring employers to provide paid sick leave for their employees took effect from 1 January 2023. Employers are legally obliged to provide paid sick leave at the minimum level, starting at three days. Statutory sick pay is a payment paid by employers to employees who are unable to work due to illness or injury. The new legislation gives employees the right to a minimum period of paid leave (three days in 2023) if they are unfit for work.
The statutory sick pay scheme has started with an entitlement of three days annually (in 2023) and increase incrementally to five days in 2024, seven days in 2025 and finally 10 days in 2026.
Both full and part-time employees can avail of paid sick leave under the scheme, which will be rolled out over four phases starting with three days from 2023 and increasing incrementally to 10 days or two working weeks in 2026.
Under the legislation, all employers must comply with the requirement to provide sick leave unless they are granted an exemption from the Labour Court in certain circumstances including severe financial difficulties. An employee cannot be penalised or treated differently when they exercise their right to take sick leave.
The scheme is being enforced through the Workplace Relations Commission (WRC) and the courts system. An employee can submit a complaint to the WRC if they believe they are being deprived of their right to paid sick leave or if their employer has failed to comply with the provision of the legislation.
The legislation states that the daily rate of sick pay is 70% of the employee’s usual daily income; this amount is subject to a cap of €110 per day and applies from the first day of illness.
To be eligible for paid sick leave, an employee must have worked for their employer for a period of at least 13 weeks.
Employers must cover the costs of statutory sick pay to their employees. Once the entitlement to statutory sick pay from their employer ends, employees who are ill may qualify for illness benefit from the Department of Social Protection subject to PRSI contributions.
The statutory sick pay will be subject to tax in the same manner as normal pay.
Employer’s need to review their current processes to see what needs to be amended and provide information to employees on the details and criteria as it relates to their employment.
Reach out to ATPS to see if we can help you with Statutory Sick Pay.
