As of January 1, 2024, employers face a pivotal shift in statutory sick pay entitlements, with employees now having the right to 5 days of sick pay per year—a notable increase from the previous 3 days in 2023. This legal minimum, often referred to as statutory sick pay (SSP), not only outlines employee rights but also introduces considerations and responsibilities for employers.
Key Aspects for Employers
Mandatory Legal Minimum: Employers are obligated to comply with the legal minimum of 5 days of sick pay per year. The payment is 70% of the employee's normal pay, capped at €110 per day.
Employee Eligibility: The entitlement to statutory sick pay is contingent on the employee being certified by a GP as unable to work. Employers should be attentive to the commencement of certification from day 1 of the employee's sick leave.
Phased Implementation: The phased rollout of sick leave entitlements, increasing to 7 days in 2025 and 10 days in 2026, should be acknowledged in employer policies and communications.
Employer Considerations:
Review and Update Policies: Employers should review and update sick leave policies to align with the increased entitlements. Clear communication with employees about the changes is essential.
Record-Keeping: Maintain accurate records of sick leave, including certification by a GP, to ensure compliance with statutory requirements.
Internal Controls: Ensure employees have fulfilled the 13-week service requirement with each employer before claiming sick pay.
Interaction with Employer Schemes:
Employer Schemes: Employers can provide more generous sick pay schemes, but the statutory minimum must be met. Ensure that your sick pay scheme aligns with or exceeds the legal requirements.
Unused Sick Days: Any period of illness lasting 5 days or less falls under Statutory Sick Pay. However, the cumulative sick leave within a calendar year must not surpass 5 days. Adjust policies accordingly.
