1. Introduction
The Sick Leave Act 2022 introduced, for the first time, a statutory right to paid sick leave in Ireland. The Act provides for a phased introduction of statutory sick pay, with entitlement of three days in 2023, increasing to five days in 2024, seven days in 2025 and ten days in 2026.
This article addresses the statutory sick pay framework, the qualifying conditions, the rate of payment, the medical certification requirements, and the practical implementation for both employers and employees.
2. Legislation and Case Law
Section 5 of the Sick Leave Act 2022 provides that an employee shall be entitled to a payment from his or her employer in respect of a statutory sick leave day. Section 6 sets the number of statutory sick leave days that an employee may take in a leave year, with progressive increases as set out above. The reference to a leave year is to a year commencing on 1 January.
Section 7 sets the rate of payment. The daily rate of statutory sick leave payment is 70 per cent of the employee’s gross daily wages, subject to a maximum daily payment of €110. Where the employee’s usual daily rate exceeds the cap, the employer pays the capped amount; the employer may, but is not required to, pay above the cap.
Section 8 sets the qualifying conditions. The employee must have completed 13 weeks of continuous service with the employer. The employee must have been certified by a registered medical practitioner as being unfit to attend work due to illness or injury.
Section 9 provides that the entitlement to statutory sick leave is in addition to any contractual sick pay arrangements. Where the contractual arrangements are more favourable, the contractual arrangements prevail. The statutory entitlement is a floor, not a ceiling.
Section 13 provides for complaints to the WRC for breach of the Act. The remedy is compensation of up to four weeks’ remuneration.
3. Decision
The early WRC decisions under the Sick Leave Act 2022 have addressed the qualifying conditions and the calculation of the entitlement. Several decisions have considered the interaction between the statutory regime and existing contractual sick pay arrangements.
Where an employer maintains a contractual sick pay scheme that is more favourable than the statutory regime, the contractual scheme prevails. Section 9(3) makes clear that the statutory entitlement does not displace more favourable contractual arrangements.
Where the employer’s contractual scheme is less favourable, the employer must provide the statutory entitlement on top of the contractual scheme to the extent necessary to meet the statutory floor. The WRC will assess whether the aggregate payment in the year reaches the statutory threshold.
Complaints have also addressed the medical certification requirement. The Act requires certification by a registered medical practitioner. Self-certification by the employee is not sufficient. The employer is entitled to require the certificate before making payment.
4. Takeaway
For employers, the Sick Leave Act 2022 imposes a new and progressively expanding payroll obligation. Employers should ensure that payroll systems track statutory sick leave days separately and that the daily rate of payment is correctly calculated.
Employers should also review existing contractual sick pay arrangements to identify any need to top up the contractual entitlement to meet the statutory floor. The aggregate annual entitlement, including any contractual payments, must reach the statutory minimum.
For employees, the statutory entitlement is significant and progressively increasing. Employees should familiarise themselves with the qualifying conditions, including the 13-week service requirement and the medical certification requirement.
Practitioners should be alive to the interaction between the Sick Leave Act, the Payment of Wages Act, and the Unfair Dismissals Acts. A failure to pay statutory sick leave may give rise to complaints under multiple regimes.
5. Further information
This article was prepared for informational purposes only. For further advice, please email enquiries@crushell.ie or contact the offices of Crushell & Co Solicitors.
6. About Crushell & Co
Crushell & Co is a specialist law firm focused on protecting and advancing the rights of employees in Ireland. We offer a nationwide service, advising individuals on a wide range of legal and regulatory issues arising at work, including employment law, employment immigration and workplace accidents and injuries.
We help employees understand their position and options by translating complex legal issues into clear, practical advice. Our approach is tailored to each client, ensuring that our strategy is aligned with their personal and professional circumstances.
Connect: @CrushellLaw or www.wordpress-576593-6594403.cloudwaysapps.com
