Key Strategic Employment Issues to Consider for 2022 - #2
Statutory Sick Pay Bill 2021 – will bring New Employee Rights without Responsibilities.
Employers are increasingly concerned at the growing volume of employment regulations despite the devastating effects of the pandemic. These will place additional burdens on employers at a time of peak uncertainty. These include the Government announcement that by 2025, employees will be entitled to 10 days of sick pay per year and this is being introduced on a phased basis. The Government published its draft Sick Leave Bill 2021 on 04 November 2021 for scrutiny by the Joint Committee on Enterprise, Trade and Employment and is expected to be enacted in 2022.
Stratis is concerned that its terms, though well intentioned to address the needs of workers, brings new employee rights without responsibilities and will place additional burdens on employers at a time of peak uncertainty. Pending the finalisation of the legislation, it is expected that statutory sick pay will be paid by an employer at a rate of 70% of an employee's wage subject to a daily maximum of €110. Apart from the costs involved, a key concern is the impact payment of sick pay from Day 1 will have on absence levels and the ability of an employer to manage absence levels, particularly disruptive short term intermittent absences.
It is likely that Unions will seek to maintain or enhance existing entitlements and while we await the final legislation, employers must start planning for a new approach to managing absences and associated costs of sick pay provision in 2022 onwards. Stratis has issued a separate detailed assessment of the Bill which is available here.
If you would like to talk to us about any of these issues, or about engaging your people through the period ahead, please get in touch with me at firstname.lastname@example.org or any one of our Partners.
‘Strategic Employment Relations’
T: +353 (0) 1 2166302
M: +353 (0) 87 2433038
Disclaimer: The information in this article is for practical guidance only and does not constitute legal or case specific advice. The answers to specific situations will vary depending on the circumstances of each case. This is not a substitute for specific professional advice relevant to individual circumstances facing your business.