Managing employee absences due to illness is a key element of HR and employee relations. And with statutory obligations in place under Irish employment law, it’s essential that employers understand their responsibilities when it comes to sick pay. Read on for more information on how to stay compliant and what records you need to keep.
Sick Pay: Employer Obligations
Under the Sick Leave Act 2022, all employers in Ireland are now legally required to provide Statutory Sick Pay (SSP) to eligible employees.
Currently, employees are entitled to 5 days of paid sick leave per year. This entitlement was expected to increase to 7 days in January 2025, but was halted earlier this year.
As an employer, here are some key points you should be aware of:
- Under the Statutory Sick Pay scheme, sick pay is paid at a rate of 70% of the employee’s regular daily earnings, up to a maximum of €110 a day.
- To qualify for SSP, an employee must have completed 13 weeks of continuous employment and must provide a medical certificate for each day of absence.
- The entitlement is calculated per calendar year, not per illness or employment period.
Existing Sick Pay Schemes
If your business already operates a sick pay scheme that is as generous or more generous than the statutory minimum, then you are not obliged to provide statutory sick pay in addition.
However, you must be able to demonstrate that your scheme meets or exceeds the statutory standard, ideally through employment contracts or documented policies.
Every business will make their own choices with regards to their sick leave policy – the important thing is that your process is compliant, and fully in line with Irish employment law.
Managing sick leave
Managing sick leave is not just about paying the correct amount, it’s also about managing the process in a compliant manner. Employers should:
- Keep accurate records of sick leave taken and statutory sick pay provided, for a minimum of four years.
- Ensure that all relevant policies and procedures are communicated to staff.
- Regularly review and update sick leave policies to change any legislative updates that may arise.
Employers should also take care when managing repeat or long-term absences, particularly where there may be implications under equality legislation or Health & Safety law. The key to compliance is to maintain a consistent and fair process.
Unauthorised Absences
It’s important to note that employees themselves are also required to follow sick-leave procedures correctly. If not, and if an employee fails to meet the requirements set out by their employer, absence due to sickness could be categorised as an unauthorised absence.
This is why it’s so important to implement clear workplace policies and comprehensive employee handbooks for your business. Clearly communicating the policies and procedures set out in your employee handbook can protect both your business and your employees.
Consequences of Non-Compliance
As an employer, if you fail to meet your legal obligations with regards to sick pay and sick leave, your business could face serious consequences.
Employees can submit a sick pay-related complaint to the Workplace Relations Commission (WRC), which could lead to financial, legal and reputational damage for your business.
Need help with your sick leave policies?
Navigating employment legislation can be complex, particularly with evolving entitlements like Statutory Sick Pay. If you’re unsure whether your current policy is compliant, or have any questions about your contracts or handbooks, our HR consultants are here to support you.
We provide free support if you’re an employer and need advice on HR issues.
Employers Direct can help to guide you through the process of addressing work-related stress.
Please speak to one of our HR and employment law advisors for free on 1800 719 014 or fill in the form to request a callback.