Dáil Éireann Debate, Thursday - 19 July 2012
354 Deputy Seán Ó Fearghaíl asked the Minister for Social Protection her views on the concerns raised in correspondence (details supplied) regarding statutory sick pay; and if she will make a statement on the matter. [36061/12]
View answer356 Deputy Brendan Smith asked the Minister for Social Protection if she will take in to account the concerns of employers as outlined through representative organisations in relation to proposals to impose sick pay costs on employers; and if she will make a statement on the matter. [36101/12]
View answer377 Deputy Seán Ó Fearghaíl asked the Minister for Social Protection if she will consider a matter (details supplied) regarding sick pay; and if she will make a statement on the matter. [36365/12]
View answerI propose to take Questions Nos. 354, 356 and 377 together.
The question of introducing a scheme of statutory sick pay, whereby employers would directly meet the costs of sick absence for an initial period of illness, is being considered in the context of the need to reform the social welfare system to bring it into line with practices in other countries in this area; the need to address the deficit in the social insurance fund; the need to limit progression from short-term illness to long-term illness or disability; and in the wider context of enhancing the health of the workforce and addressing levels of absenteeism.
A range of complex issues need to be addressed before any decision could be taken by Government on the possible introduction of a statutory sick pay scheme. These include the extent of coverage; the duration of payment; the rate of payment; compensation mechanisms for employers where appropriate; and how to ensure that a scheme of statutory sick pay would be enforced and policed.
The impact of introducing a statutory sick pay scheme would be contingent on how all of these issues are addressed and how such a scheme would ultimately be structured. I am acutely conscious of the pressures facing employers and in particular with regard to employment retention and costs to business. A preliminary analysis based on estimates of absenteeism in the private sector indicates that if a sick pay scheme with a duration of four weeks were to be introduced, it would add about €1 per week per employee to the costs of employment.
I hosted a consultative seminar attended by a broad range of key stakeholders some of whom expressed very real concerns in relation to the introduction of a scheme of statutory sick pay in February 2012. The report on this seminar, is available on the Department's website. These concerns will be taken into account as the range of complex issues associated with the introduction of such a scheme continues to be considered.
The issues involved will be discussed in the course of the wider process associated with the preparation of budget 2013 and any decisions which might be taken by Government on the possible introduction of a statutory sick pay scheme will be considered in that context.
