Written answers

Thursday, 23 June 2022

Department of Enterprise, Trade and Employment

Legislative Measures

Photo of Marc Ó CathasaighMarc Ó Cathasaigh (Waterford, Green Party)
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168. To ask the Minister for Enterprise, Trade and Employment if he has been liaising with the Minister for Social Protection to ensure that there is a sick pay rebate mechanism to help small business employers with the payment of the double costs of a having a sick employee and having to pay for replacement staff, similar to the employee wage subsidy scheme during the pandemic and as outlined in the Economic Analysis on the Impact of the Statutory Sick Leave Bill (2022) on Small Business in Ireland report published by an organisation (details supplied); and if he will make a statement on the matter. [33480/22]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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My officials have read and reviewed the "Economic Analysis on the Impact of the Statutory Sick Leave Bill (2022) On Small Business in Ireland" report that was recently published by the Local Jobs Alliance, and I want to extend my thanks for the work that went into compiling the report.

We are well aware that there are employers in some sectors who will have to deal with the cost of replacing staff who are out sick, and at short notice. This is why we are setting a cap of €110 or 70% of regular earnings, to give those employers certainty around the costs involved at the outset. It’s also fair to employees and ensures that they receive an appropriate and predictable level of compensation if they are unable to work due to illness or injury.

The scheme has been designed based on consultation with employee and employer representatives. Prior to seeking Cabinet approval for the draft of the Bill, my officials undertook a full public consultation that sought the views of relevant stakeholders and the public on key policy questions around the design of the scheme.

As a starting point, this scheme will cover the three ‘waiting days’ before eligibility for illness benefit from the State. However, the length of coverage will increase over time, eventually providing for an entitlement to 10 working days or two weeks per year in the fourth year of the scheme’s operation and this will see costs rise for employers.

With regards to the rebate proposal any changes will follow the scheme’s commencement, and will be considered in light of businesses' experience of the early operation of the scheme.

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