Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I am committed to bringing in a statutory sick pay scheme for Ireland as part of my work programme for next year.

Such a scheme would improve workers' terms and conditions, particularly low paid workers, but there are various issues to consider before we establish the scheme.

As a starting point, I presented a draft issues paper on statutory sick pay to the labour employer economic forum, LEEF, sub-group on employment legislation and regulation on Wednesday, 30 September, with a view to commencing a consultation process. We had an initial discussion at the meeting and I asked employers, unions, ICTU and IBEC to consider the range of issues and policy options set out in the paper and submit their views to the Department by this week. I am not sure whether this has happened but we were due to hear back from them this week. Their views will be taken on board and a revised paper will then be discussed at a further meeting of the LEEF sub-group in November. I do not think any stakeholder is rigidly opposed to it. Certainly ICTU is in favour and the employer groups have pointed out that many employers already offer sick pay schemes. Of course, many do not.

There are cost implications and perhaps staffing and competitiveness implications for some companies, so all of these issues will have to be worked through carefully, thoroughly and quickly. Any move to introduce a new scheme that will impose further costs on business, particularly small businesses, cannot be done lightly. It needs to be structured in a way that ensures the benefits to workers, employers and society outweigh any costs involved and that the costs are shared. Micro and small businesses are particularly vulnerable. A statutory sick pay scheme must be balanced with the need to ensure the viability of businesses and the enterprise sector, thereby protecting jobs. Our focus is on getting people back to work as quickly as possible in all regions and all sectors, including the hospitality and retail sectors in particular.

I have committed to moving through the process, including a full public consultation, as quickly as possible and to publish the general scheme of a Bill by March 2021, with a view to having the Bill enacted in the second quarter of 2021 and up and running before the end of next year.

As an important first step on the road to a statutory sick pay scheme, this week the budget reduced the waiting days for illness benefit from six days to three.

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