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

I thank Deputies for their contributions. I have been very clear on the medium-term plan, which is to make sure that employers know what their obligations will be and that employees know what their rights are. The statutory entitlement to sick pay will be phased in as part of a four-year plan. The initial entitlement would be to three paid sick leave days per year once the Bill is enacted and commenced. This will, effectively, fill the gap in coverage caused by the illness benefit waiting days. Closing the gap of current waiting days before being able to access illness benefit will help to reduce the number of sick employees presenting for work. It is important to point out that illness benefit kicks in on day four and runs up to one year and, in some cases, for two years.

It is not the case that people will have no income. That said, illness benefit in Ireland is very low and that is something we need to examine in the context of the budget and the social welfare Bill.

The four-year plan takes account of the current economic climate and existing financial pressures on businesses. The number of days will increase incrementally, with the goal being that the employer will eventually cover the cost of ten sick days per year from the fourth year of operation, after which illness benefit continues to kick in.

We fully understand that many businesses, particularly SMEs and especially those along the Border, are struggling at the moment with additional costs, often linked to the Russian invasion of Ukraine or the aftermath of Covid-19 and Brexit. This includes higher energy costs, higher input costs, wage increases and costs imposed by the Government such as auto-enrolment and the additional public holiday. It is in recognition of this that we have chosen to phase this in gradually.

Amendment No. 17 would provide that the number of paid sick leave days cannot be reduced by below ten by any ministerial order. As statutory sick leave will be introduced at three days per year, this amendment would not align with the timeline of the scheme.

Amendment No. 18 would provide that there is no restriction on how many days statutory sick leave could increase by in any given year. Section 5 currently stipulates that the Minister may not increase the number of sick days by more than three in any 12-month period. This provides certainty to employers by ensuring that unexpectedly large increases in the number of sick leave days they have paid for will not be introduced. This is a sensible approach that will allow small businesses to plan ahead and anticipate these additional costs.

Providing the Minister with the ability to increase the number of sick leave days by as many as ten in one year, as amendment No. 19 would allow, would be disproportionate. Such a dramatic increase in coverage in one year could have unintended negative consequences. It could force employers to lay off staff, make people redundant, reduce their hours or even reduce their pay. That would not be a desirable outcome.

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