Dáil Éireann Debate, Wednesday - 6 April 2022
148. Deputy Neale Richmond asked the Minister for Children, Equality, Disability, Integration and Youth if he has engaged with childcare providers over concerns regarding the ability to pay sick and holiday pay; and if he will make a statement on the matter. [18512/22]
Amharc ar fhreagraProviders of early learning and care (ELC) and school-age childcare (SAC) are private businesses and the State has no role in the employment of their staff, nor does my Department provide funding specifically to cover the costs of employing staff. However, providers receive income from a number of State funding schemes as well as from parental fees.
Currently, ELC and SAC providers offering the National Childcare Scheme and other Legacy Schemes are funded on the basis of attendance. These providers receive funding for public holidays occurring during the year. Providers offering the ECCE programme are required to deliver the Programme for 182 days a year, with capitation for the Programme paid for 190 days a year. This includes payment for 8 public holidays which fall within the period end August to end June (to include the new public holiday introduced this year).
The level of funding provided by my Department will rise significantly from this coming September with the implementation of the new Core Funding stream.
Holiday entitlements are set under the Organisation of Working Time Act 1997, which sets out minimum annual leave entitlements and an employee’s entitlement to public holidays. Payment for annual leave and public holidays is a requirement for all employers.
The Tánaiste is progressing the introduction of the Sick Leave Bill. It is proposed that statutory sick pay will initially be paid at 70% of regular earnings up to a cap of €110 per day, from the first day of illness for a maximum of three days per year. If the full 3 days' entitlement were used, this would equate, in percentage terms, to an additional cost for employers of around 0.8% of the annual wage of an employee receiving the average wage in the ELC and SAC sector and working full-time.
I am aware that employers in some sectors - including the ELC and SAC sector - also have to deal with the cost of replacing staff who are out sick, though this is not a new cost. The Tánaiste is setting a cap of €110 or 70% of regular earnings, to give employers certainty around the costs involved at the outset. It is also fair to employees and ensures that they receive an appropriate and predictable level of compensation if they are unable to work due to illness or injury.
The length of coverage is expected to increase over time, eventually providing for an entitlement to up to 10 working days or two weeks per year in the fourth year of the scheme’s operation.
For businesses who genuinely cannot afford to pay, included in the sick pay proposals is an ‘inability to pay’ provision. This would allow the Labour Court to grant an exemption to a business from their obligations under this legislation, for a period of not less than 3 months and not more than 12 months. There is a similar provision in the National Minimum Wage Act 2000. It would only be granted where there is a real risk to business sustainability.
