As a small business owner in Ireland, understanding the sick pay rules is crucial for maintaining compliance with Irish employment law and ensuring the well-being of your employees. Sick pay is an essential benefit that supports employees who are unable to work due to illness, and it helps create a supportive and caring work environment. 

In this guide, we will break down the rules surrounding sick pay in Ireland, how they apply to your business, and what steps you need to take to stay compliant. We will also offer practical tips for small businesses that may not have a dedicated HR department, so you can manage sick leave effectively while protecting your business interests. 

Sick pay refers to the payments made to employees when they are unable to work due to illness or injury. In Ireland, there are no statutory sick pay entitlements for most employees—this means that employers are not legally required to provide sick pay unless they choose to do so or have a contractual obligation. 

However, recent legislation has introduced mandatory sick pay under the Sick Leave Act 2022, which mandates that employers provide sick pay to employees. The introduction of this law has brought significant changes to the sick pay rules in Ireland, and small businesses need to understand what it entails to remain compliant. 

Under the Sick Leave Act 2022, which came into effect in 2023, Irish employers are now required to provide sick pay to employees who are absent from work due to illness. However, the law has specific conditions that both employers and employees must meet. 

Key aspects of the legislation include: 

• Eligibility: The law applies to employees who have completed 13 weeks of continuous service with their employer. 

• Sick Pay Entitlement: Employers must pay employees who meet the eligibility criteria for 5 days of paid sick leave per year. 

• Pay Rate: The sick pay is capped at 70% of the employee’s normal daily earnings (up to a maximum of €110 per day). 

• Sick Leave Period: The payment is only for the first 5 days of sickness absence each year. After this, employees may be eligible for social welfare benefits, such as Illness Benefit from the Department of Social Protection. 

1. Proof of Illness: Employees are required to provide a medical certificate from their doctor to qualify for sick pay. This helps employers verify the validity of the absence. 
2. Payment Scheme: Employers are responsible for setting up and managing a sick pay scheme. The scheme should specify the payment amount, eligibility criteria, and duration of sick leave. 
3. Notification: Employees should inform their employer as soon as possible when they are unable to attend work due to illness and provide documentation such as a medical certificate. 

For small businesses in Ireland, providing sick pay can present both challenges and opportunities. While the Sick Leave Act 2022 requires businesses to provide a minimum level of paid sick leave, it is also an opportunity to demonstrate care for your employees, which can enhance morale and loyalty. Here is what small businesses need to know: 

Although Irish law now mandates a minimum sick pay entitlement, small businesses still have the flexibility to design their own sick pay schemes. Here is how to get started: 

• Decide on the Terms: You can provide sick pay at a higher rate than the statutory requirement, such as 100% of normal wages, or offer a tiered system. 

• Implement Eligibility Criteria: Clearly define the eligibility criteria for sick pay (e.g., 13 weeks of service), and ensure it is communicated to all employees. 

• Create a Sick Pay Policy: Put in place a formal sick pay policy that outlines how sick leave is to be managed, including when employees need to provide medical certificates, how to notify the employer about illness, and how the sick pay will be paid. 

Keeping track of sick leave is essential to ensure compliance with the Sick Leave Act and to manage employee absence effectively. Small businesses may use a simple spreadsheet or payroll software to record sick leave, monitor employee attendance, and ensure payments are made in line with the sick pay policy. 

It is essential to clearly communicate your sick leave policies to your employees. This can be done through: 

• Employee Handbook: Include your sick leave and sick pay policies in the employee handbook so that all employees understand their entitlements. 

• Training and Awareness: Educate employees about the sick leave process, including how to report sick leave and provide medical certificates when required. 

If an employee’s illness lasts beyond the statutory sick leave period, they may be eligible for Illness Benefit from the Department of Social Protection. As a small business, you should: 

• Assist with Applications: Ensure employees know how to apply for Illness Benefit and assist them in gathering any necessary documentation. 

• Consider Additional Support: For prolonged illness, consider offering additional support, such as flexible work arrangements or mental health support. 

While providing sick pay is a legal requirement, there are steps you can take to protect your business: 

• Limit Abuse: To prevent abuse of sick leave, you may want to include provisions in your sick leave policy regarding abuse or excessive absenteeism. This can include requiring a second medical opinion if the illness seems inconsistent with the employee’s role or absences. 

• Monitor Attendance: Keep track of sick leave patterns and address any concerns about frequent short-term absences or long-term illnesses with appropriate action. 

1. Review the Legislation: Familiarize yourself with the Sick Leave Act 2022 and any other relevant Irish employment laws. 
2. Draft Your Sick Pay Policy: Create a sick pay policy that complies with the Sick Leave Act and outlines how sick pay will be administered in your business. 
3. Communicate with Employees: Ensure all employees are aware of your sick leave and sick pay policies. Make sure they know the process for notifying you when they’re sick and what documentation is required. 
4. Implement a Tracking System: Set up a system to track employee sick leave and ensure the sick pay is paid accurately. 
5. Provide Support: Support employees who are sick by offering help with Illness Benefit applications, providing flexible working conditions, and offering mental health support when needed. 
6. Review and Adjust: Regularly review your sick pay policy to ensure it remains compliant with changing laws and is aligned with your business needs. 

Yes, under the Sick Leave Act 2022, employers in Ireland are required to provide paid sick leave for employees who have worked for at least 13 weeks.  

Under the current legislation, employers must pay sick leave for a period of up to 5 days per year. If an employee’s illness extends beyond this, they may be eligible for Illness Benefit from the Department of Social Protection. 

Yes, employers are free to offer sick pay at a higher rate than the statutory minimum. Many businesses provide 100% sick pay or a higher daily limit to support their employees better. 

To qualify for sick pay, employees must have completed at least 13 weeks of continuous service with the employer. They are also required to provide a medical certificate from a doctor. 

If an employee’s illness lasts longer than the 5 days covered by sick pay, they may be eligible for Illness Benefit from the Department of Social Protection. It is important for employees to apply for this benefit and provide the necessary documentation. 

Employers can refuse to pay sick leave if the employee does not meet the eligibility criteria, such as failing to provide a medical certificate or if the absence is not covered under the terms of your sick leave policy. 

As a small business owner in Ireland, navigating sick pay rules can be complex. If you have questions or need assistance setting up your sick pay scheme or ensuring compliance with the Sick Leave Act, our free HR advice line is here to help. Our experts can guide you through the process and help you avoid potential pitfalls. 

Providing sick pay to employees is now a legal requirement for small businesses in Ireland, but it is also an opportunity to support your workforce and maintain a healthy, productive workplace. By understanding the rules, implementing a compliant sick pay policy, and supporting your employees, you can navigate the complexities of sick pay with confidence. If you need any assistance, do not hesitate to contact our free HR advice line. 

At Employers Advice, we provide comprehensive HR solutions tailored specifically for Irish employers. Our team of HR experts is available 24/7 to offer trusted advice on all aspects of Human Resources management, ensuring you have the support you need to navigate the complexities of Irish employment law and workplace issues. From creating legally compliant contracts of employment and Company policies to drafting employee handbooks, we ensure your documentation meets all Irish employment standards. Additionally, we specialize in assisting with disciplinary procedures, providing guidance to help you manage employee performance and resolve conflicts effectively. With our expert HR consultancy, you can focus on growing your business while we take care of your HR needs, ensuring compliance, efficiency, and peace of mind every step of the way. 

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