Employers will have to pay workers for sick leave in 2023 as new laws come into effect.
From January 1, there will be a legal obligation for employers to pay their staff during periods of absence through illness.
The Sick Leave Act came into law on July 20 of this year and is set to come in from the first day of 2023.
From then, workers will have the right to paid sick leave for up to three sick days per year, which will increase to 5 days in 2024, 7 days in 2025 and 10 days in 2026.
The rate of payment will be 70% of normal wages, up to a maximum of €110 per day.
Employees must be working for at least 13 weeks to avail of sick leave, and will also need to be certified by a GP as unfit to work.
They will also be able to take a complaint to the Workplace Relations Commission if they are not provided with a company sick pay scheme from the new year.
COO at Employment Law and HR company Peninsula Ireland, Moira Grassick said: “Following on from the experiences of the COVID-19 pandemic, the Government identified a public health need to ensure that lower paid workers did not feel obliged to go to work if they felt ill.”
She said that it will be the employers who will bear the full cost of the scheme.
“While the scheme looks set to have a positive impact on public health and will benefit lower-paid workers, it is nevertheless employers that will bear the full cost of the scheme,” she said.
“Along with ongoing economic uncertainty and soaring energy costs, the timing of the scheme could contribute to negative outcomes for growth, jobs, and competitiveness.”
Grassick recommends for employers to start preparing now if they haven’t already done so.
“It’s quite possible that the financial implications of paid sick leave could be too much to bear for certain employers, particularly SMEs.”
They can start this preparation by reviewing payroll processes to ensure the new sick leave payments will be adequately reflected in employee payslips. According to Peninsula Ireland, failure to keep proper records is an offence under the Act and attracts a maximum fine of €2,500.
Next, they should review employment contracts and policies to see if the existing sick leave policy needs to be updated. No action may be necessary if the terms of an existing policy are more generous than the statutory payments outlined in the law.
Finally, they should notify employees in writing about any changes in employment terms that are required under the statutory sick pay legislation.
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