Dáil Éireann Debate, Wednesday - 6 June 2012
413 Deputy Maureen O’Sullivan asked the Minister for Social Protection if she will provide an economic breakdown of the cost to small to medium size businesses here; if changes are made to the statutory sick pay scheme; if an impact study is being done on the extra costs put on businesses which may drive them into further financial instability; and if she will make a statement on the matter. [27165/12]
Amharc ar fhreagraThe 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.
Before any decision could be taken by Government on the possible introduction of a statutory sick pay scheme, a range of complex issues need to be addressed. 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 potential impact on small and medium size enterprises would be contingent on how these issues are addressed and how the scheme would ultimately be structured. 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 on the feasibility and implications of introducing a scheme of statutory sick pay in February of this year. This seminar was attended by a broad range of key stakeholders, including representatives of small and medium-size employers. The report of that seminar will be published shortly and will provide the basis for more detailed consultations with key stakeholders. The analysis of the potential impacts of introducing a scheme of statutory sick pay will be developed and refined as consultation with key stakeholders progresses.
