Dáil Éireann Debate, Tuesday - 26 July 2022
32. Deputy Patrick Costello asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason that payment is capped at 70% and €110 per day in relation to the Sick Leave Bill 2022; the reason that a doctor’s note is required for one day under the Bill given that the cost of attending a general practitioner would negate the actual payment eligible for low paid workers under the Bill; and if he will make a statement on the matter. [40405/22]
View answerIreland has been an outlier to date among wealthy OECD countries in not providing for any statutory paid sick leave. It’s not right that people feel forced to go to work when they are sick and it’s not good for public health.
The Act is intended to provide a level of protection to employees who do not currently have employer-paid sick pay schemes, many of whom are low-paid and cannot afford to miss work. As a starting point, this scheme will cover the three waiting days before eligibility for Illness Benefit from the State. This is a progressive Bill and will ensure that all employees are better off and will have financial protection from day one of a medically certified absence.
Taking account of the current economic climate, the initial period covered by employers will be modest, but will increase incrementally. We must be mindful of imposing excessive costs on employers, many of whom have had a very difficult two years with Covid-19 related restrictions and Brexit related impacts. That is why we have taken an incremental approach with the scheme.
The legislation will provide for sick pay of 70% of gross salary up to a cap of €110 for 3 working days in a calendar year and will eventually go to 10 days.
As set out in the Regulatory Impact Assessment, the rate of 70% of gross pay is set to ensure excessive costs are not placed on employers, who in certain sectors may also have to deal with the cost of immediately replacing staff to cover the absence. However, after applying the 70% rate of pay, it is clear from the analysis that the potential cost for businesses remains high and also increases disproportionately at higher incomes. A daily earnings threshold figure of €110 will be applied which is based on 2019 mean weekly earnings of €786.33 which equates to an annual salary of €40,889.16. Imposing the cap at this level ensures that €110 is the maximum cost for any employer per day (weekly salary of €786.33 divided by 5 days multiplied by 70% = €110.08).
I believe it would be unreasonable to introduce a legal obligation for employers to pay for sick leave without the need for a worker to produce a medical certificate.
The requirement for a medical cert for paid sick leave is a fair and necessary provision. It is also not an unusual requirement. Employees are currently required to provide medical certs to access State Illness Benefit and it is a requirement in many sectoral and company level sick pay arrangements.
