The highly anticipated Sick Leave Act (“the Act”) was finally signed into law by the President on 22 July this year, however the provisions of the Act are not due to commence until 2023. Employers in anticipation of this, will need to review their Sick Leave policies and ensure that they are in compliance with the Act before 2023.
Provisions of the Act
The Act sees the introduction of a mandatory employer Statutory Sick Pay scheme (“SSP Scheme”) for the first time in this jurisdiction. It will provide for an entitlement to a minimum period of paid sick leave for all employees should they fall ill or sustain an injury which prevents them from being able to work.
The current system in place for employees is that after three days of sick leave an employee may apply for Illness Benefit, however the first three days are not covered. The implementation of the Act will effectively fill the gap in coverage caused by Illness Benefit waiting days.
Employee Entitlements under the Act
Employers with more favourable provisions?
In the event that an employer provides a more favorable sick leave scheme then the Act will not apply. In determining whether an employer’s scheme is more favorable, reference should be made to a number of factors:
Exemption from obligation to Pay?
In instances where an employer is experiencing severe financial difficulties they can make an application to the Labour Court seeking an exemption from paying for a period of between 3 to 12 months. The employer must also have the agreement of the employee /employees before such an exemption will be granted.
However, notwithstanding this the Labour Court my still grant an exemption provided it is satisfied that that
Records
Another notable provision of the new Act is the obligation on employers to make a record of the statutory sick leave taken by each employee and to retain the record for a period of 4 years. Failure to comply with this provision without reasonable cause will constitute an offence under the Act.
Preparation for 2023
The introduction of the Sick Leave Act may have a significant effect on employers if they are unprepared:
Authors – Ethna Dillon & Anne O’Connell
30th September 2022
Anne O’Connell Solicitors
19-22 Lower Baggot Street, Dublin 2
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