Ollie Crowe (Fianna Fail) | Oireachtas source

I thank the Tánaiste for his time before the House. Like other colleagues, I welcome this legislation. Every worker deserves the right to be paid sick leave. Workers have that facility already in the vast majority of countries across Europe and it is time that Ireland joins that list.

Covid-19 made clear the very precarious position of many workers, particularly in lower paid roles and in the private sector. As I am sure the Tánaiste and all Members of the House have done, I have spoken to many people who must go to work even when they are very sick because they cannot afford not to do so. In my opinion, that is not acceptable. We must move away from a culture that tolerates such a situation and this legislation is the first significant step to do so.

Research suggests that around 50% of workers have sick leave pay at present. Obviously there is a significant difference between public and private sectors in this regard. It is a de factostandard across the public service but coverage is much lower in the private sector.

I want to raise some concerns about the impact this legislation will have on businesses, particularly SMEs which are the backbone of the Irish economy. I recognise that the legislation will be brought in on a phased basis so SMEs will have time to adjust over the coming years. The costs have been capped to ensure the burden is limited. Having said that, the legislation will still have a significant impact on businesses with customer-facing staff, particularly in the hospitality and retail sectors which already face challenging circumstances as we look to rebound from Covid. It is probable that SMEs in these sectors will have to deal with a multiple number of staff missing work due to a contagious disease such as flu. Replacing staff at short notice will prove very difficult. First, as we are all aware, there are significant staff shortages in these sectors currently. Second, the provision will be very expensive for businesses. I expect that businesses in the hospitality sector looking to replace staff at short notice to work on a Friday or Saturday night, or on a Sunday, will have to offer to pay them at a time and a half, or at a double-time rate, in addition to paying the employee who is out on sick leave. This means businesses will incur significant additional costs and expenses.

I recognise that section 10 of the legislation includes an inability to pay provision. One could identify that as being a relief for businesses that are under pressure but it may come too late for some businesses. The reality is that many SMEs do not have the capacity or knowledge to make use of the provision. I would say that the majority of SMEs will not even know that the provision exists.

Like other Members, I have been contacted by a number of people representing SMEs who have expressed real concern about the additional costs that their businesses will face under this Bill. They are good honest and decent people who want to do right by their staff, but between Covid-19 and inflationary and supply-chain issues many of them are already under significant pressure. I know from my own experience that the longer an employee works for and with a business, the better the relationship, and the business will thrive as a result. I have experienced that at first hand. I know what it is like to have a good understanding between an employer and employee. As the years build, respect grows, the employee works better and as a result the business thrives. Therefore, it is in everybody's interest to get this right.

There has been a suggestion that this legislation will add between 1% and 2% to the payroll bill. My opinion is that 1% or 2% may sound like a small amount but for many SMEs, particularly those in the hospitality sector such as bars, restaurants and shops that employ seven or eight staff, that has potential to mean many thousands of euro a year. Representatives of SMEs have told me that this is money that they simply do not have in the current climate.

As I have stated and as other Senators have stated, we all believe that workers should have sick leave. We must move forward with the legislation but we need to ensure we do not risk the viability of SMEs across various sectors. I respectfully suggest that we enhance the supports given to SMEs as we move this proposal forward. A tax rebate would be a fairer way and may make sense as a method of doing this. I would be grateful to hear the views of the Tánaiste on that aspect.