Government consultation process on the legal regime of sickness benefits



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The government has launched a consultation process with a view to introducing a legal sickness compensation scheme for workers by the end of next year.

At present, Irish employers are not legally required to pay workers when they are ill, although some employers do provide for sick pay on a voluntary basis in the individual employment contract.

However, many other workers, particularly lower-paid employees in precarious jobs, may feel compelled to work when they are sick to avoid loss of income.

The problem has been highlighted since the start of the Covid-19 pandemic amid concerns that some workers who fear financial losses may continue to work and spread the virus because they cannot afford to quarantine.

To encourage workers to isolate themselves when necessary, the state has introduced the Covid-19 enhanced sickness benefit of € 350 per week, although this still leaves many workers experiencing an income deficit.

Tánaiste and the Minister for Business Trade and Employment, Leo Varadkar, noted that Ireland is one of the few European countries where employers are not legally required to provide sick pay.

“This must change and I am committed to introducing a legal sickness pay plan that works for employees and employers as quickly as possible,” Varadkar said.

He acknowledged that 2020 had been a difficult year for employers dealing with Covid-19 restrictions and Brexit.

“The scheme must be designed in a way that protects employees, particularly low-wage and vulnerable workers, but it must also be fair and affordable for employers, many of whom have faced great difficulties this year,” he said.

The deadline for submissions is December 18.



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