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Statutory Sick Pay in Ireland

30/01/2025

Statutory Sick Pay (SSP) is a vital component of employee rights in Ireland, ensuring that workers are supported during periods of illness. For managers, understanding the legal framework, managing SSP effectively, and maintaining compliance are essential to fostering a fair and productive workplace. This article explores the key provisions of the Sick Leave Act 2022, practical steps for managing SSP and absences, and recent case law developments.

Key Provisions of the Sick Leave Act 2022

The Sick Leave Act 2022 introduced Ireland's first statutory sick pay scheme, which came into effect on 1 January 2023. Here are the key sections of the Act that managers need to know:

  1. Employee Entitlement
    Employees are entitled to SSP if they have completed 13 weeks of continuous service with their employer and provide a medical certificate confirming their inability to work.

  2. Duration of Sick Leave:

    • In 2023, employees were entitled to 3 days of SSP annually.

    • From 2024, this increased to 5 days, with further increments planned: 7 days in 2025 and 10 days in 2026 subject to ministerial order.

  3. Rate of Payment:
    SSP is paid at 70% of the employee's normal daily earnings, capped at €110 per day.

  4. More Favourable Provisions:
    Employers with existing sick pay schemes that are more favourable than SSP are exempt from the statutory requirements, provided the scheme meets the criteria outlined in the Act.

  5. Exemptions for Employers:
    Employers experiencing severe financial difficulties may apply to the Labour Court for an exemption from SSP obligations.

  6. Record-Keeping:
    Employers must maintain records of SSP payments for 4 years, including details of the employee, the dates of sick leave, and the amount paid.

Managing SSP and Absences

Effective management of SSP and employee absences is crucial for maintaining workplace productivity and compliance. Here are practical steps for managers:

  1. Establish Clear Policies:

    • Develop a comprehensive sick leave policy that aligns with the Sick Leave Act 2022.

    • Communicate the policy to employees, ensuring they understand their entitlements and responsibilities.

  2. Monitor Absences:

    • Keep accurate records of employee absences and SSP payments to comply with legal requirements.

    • Use absence data to identify patterns and address potential issues, such as excessive absenteeism.

  3. Support Employees:

    • Foster a supportive work environment by encouraging employees to report illnesses promptly.

    • Provide resources, such as access to occupational health services, or EAP to help employees return to work.

  4. Handle Disputes Fairly:

    • Address any disputes regarding SSP entitlements or absences through transparent and impartial processes.

    • Seek HR Advice on any complex issues.

  5. Stay Informed:

    • Regularly review updates to SSP legislation and case law to ensure ongoing compliance.

    Case Law on Statutory Sick Pay

Recent case law has provided valuable insights into the application of the Sick Leave Act 2022. A notable example is the Katerina Leszczynska v Musgrave Operating Partners (2023) case, the first decision under the Act:

  • Facts: The employee, Ms. Leszczynska, claimed that her employer's private sick pay scheme, which included a 3-day waiting period, was less favourable than SSP.

  • Arguments: The employer argued that their scheme, which provided 8 weeks of full pay after the waiting period, was more favourable overall.

  • WRC Findings: The Workplace Relations Commission (WRC) ruled that the employer's scheme was more favourable as a whole, despite the waiting period, due to the longer duration and higher rate of pay.

This case highlights the importance of assessing private sick pay schemes against SSP requirements to ensure compliance.

How WorkWise Can Help Your Business

Navigating the complexities of statutory sick pay and absence management can be challenging for businesses. WorkWise offers tailored solutions to help managers and business owners stay compliant and support their teams effectively. Our services include:

  • Policy Development: Crafting clear and compliant sick leave policies.

  • HR Training: Equipping managers with the knowledge and skills to handle SSP and absences.

  • Case Management: Providing expert advice on complex cases, including disputes and exemptions.

  • Compliance Audits: Ensuring your business meets all legal requirements under the Sick Leave Act 2022.

With WorkWise by your side, you can confidently manage SSP while fostering a supportive and productive workplace.

By understanding the provisions of the Sick Leave Act 2022, implementing effective absence management strategies, and staying informed on case law, managers can ensure compliance and support their employees during times of illness. 

Contact us: info@workwisehr.ie
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