Two Recent Employment Law Changes Enacted - 2023 Know your obligations!
Did you know there have been two significant pieces of legislation that have recently come into effect in Ireland?
1. Statutory Sick Pay
2. Transparent and Predictable Working Conditions
1. Statutory Sick Pay
Ireland has seen a surge in Covid-19, influenza, and RSV over recent weeks which thankfully according to the Chief Medical Officer has now passed its peak. However, respiratory viruses will continue to circulate which has implications on employers dealing with sick employees. There was no obligation for employers to pay employees on sick leave in the past, but that has all changed, as of 1 January 2023, when the Sick LeaveAct 2022 came into effect.
When did the Sick Leave Act take effect?
It has already taken effect as of the 1st of January 2023. There will be increasing worker entitlements in 2024-2026. The phased implementation of employee’s entitlement to Statutory Sick Pay, is as follows:
Paid Sick Days
Year of Implementation
3
2023
5
2024
7
2025
10
2026
Once the entitlement to Statutory Sick Pay ends, employees who require any
additional time off may qualify for Illness Benefit.
What is the minimum Rate of SSP I must pay employees?
Sick pay of 70% of normal weekly pay, up to a maximum €110 a day. However, there are
some eligibility criteria that must be met by employees, such as:
· 13 weeks of continuous employment; and
· Medical Certificate from day 1 of absence
Do I have to pay my employees sick pay?
Yes, unless your business is in severe financial difficulty. Employees can submit a
claim to the WRC where sick pay is not provided by their employer. There are some exemptions for
employers in severe financial difficulty and where granted, will be valid for 3 to 12 months.
In this scenario, an application must be made to the Labour Court following an agreement between the employer and the majority of employees, employee representative(s), or trade union representative consenting to the application. Where no agreement has been reached, an application can still be granted provided:
· The employees are aware of the financial difficulties and the employer has tried to enter into an agreement with them; and
· The employer is unable to pay SSP, or payment of SSP would risk layoffs or the business would be significantly adversely affected by payment of SSP
Do I have to update my company’s Sick Leave Policy Documents?
If the employer’s current sick leave policy is more favourable than the minimum requirements set out in the Sick Leave Act there is no obligation to make any additional payments. However, if the employer’s sick leave policy doesn’t meet the Act’s minimum requirements, any less favourable treatment in an employment contract or policy will be overridden by the Act.
We do recommend that you review the policy to consider updates to:
(a) Eligibility criteria for sick pay in line withthe 13 weeks’ service provision
(b) Assess whether you wish to change the requirements of your policy to specify that a medical cert is now required from day 1 of illness or maintain your current requirement.
Don’t forget - an annual review of your sick policy will be required to account for the phased implementation from 2023-2026 of increased days of sick leave entitlement.
2. EU Directive for Transparent and Predictable Working Conditions
This piece of legislation was implemented into Irish Law under S.I. No. 686/2022 -European Union (Transparent and Predictable Working Conditions) Regulations 2022 without much attention, on the 16th of December 2022 by making amendments to the following pieces of legislation:
· Terms of Employment (Information) Act 1994
· Protection of Employees (Fixed-Term Work) Act2003
· Organisation of Working Time Act 1997
· Workplace Relations Act 2015
Whatdoes the new Directive mean for my business?
The Directive aims to provide Employees with more predictability and clarity in relation to their working conditions. This means updated legal obligations for Employers. We’ve done a quick snapshot of the change in requirements for each piece of legislation below.
As a result of these changes, employers will need to:
√ update their terms and conditions of employment
√ manage probationary periods and fixed termworkers differently
√ review their practices in relation to rostering to bring more certainty
We realise that it can be daunting keeping up with all the HR and Employment Law changes for your growing business. As your Chamber HR partner, Adare Human Resource Management will
always endeavour to bring you the latest news, so your business is best
prepared to manage these updates.
More information is available on other 2023 employment law changes Protected Disclosures and Tips and Gratuities; both of which came into effect on 1st January 2023.
If you require access to expert guidance with tailored HR solutions and support, please do get in touch. You can email us at adarechambers@adarehrm.ie or click here to book a call.