Irish Government formally revokes plan to grant extra two days’ sick leave.
The decision by the Irish Government to leave paid statutory sick leave unchanged at five days has received a mixed reaction.
On the one hand Chambers Ireland has said the move will be welcomed by businesses and employers already grappling with rising costs, increased regulatory requirements and a period of unprecedented global uncertain and unpredictability.
“This will allow businesses to focus on maintaining their workforce and sustaining their operations during these uncertain times”
However, trade union groups ICTU and SIPTU have both condemned the Irish Government decision, arguing that the original commitment on increasing the number of days of entitlement to Statutory Occupational Sick Pay from five to seven days would bring Ireland more closely in line with far superior benefits available in other EU member states.
Keeping businesses viable
“As Minister for Enterprise, Tourism and Employment, I am committed to promoting working conditions in Ireland and boosting job creation. I must also ensure that we create a regulatory environment that allows businesses to remain viable, and, indeed, to thrive,” Minister Peter Burke, TD, said yesterday.
“Since the introduction of statutory sick leave in 2023, and subsequently the increase in the sick leave entitlement to 5 days in 2024, business owners and representative organisations, particularly in the retail and hospitality sectors, have consistently raised concerns about the cumulative impact of such regulatory measures in light of rising labour, input and energy costs.
“Five days’ sick leave strikes the right balance. It gives workers income protection for five days, after which Illness Benefit is there to support them.”
SIPTU deputy general secretary Greg Ennis described the reversal as “unacceptable and an attack on workers’ rights.”
He said: “These workers are already struggling in many cases, with the ongoing cost of living crisis and the impact of the current economic volatility caused by the Trump Administration’s tariffs programme.”
However, Chambers Ireland CEO Ian Talbot said that introducing additional sick pay measures would have placed another burden on employers during these uncertain times.
“We appreciate the Government’s recognition of the challenges faced by businesses in the current economic climate,” Talbot said. “The decision not to introduce additional statutory sick pay measures is a welcome relief for employers who are striving to manage their operations amidst escalating costs, increases in the minimum wage and a series of other new legislative requirements implemented in recent years.
“This will allow businesses to focus on maintaining their workforce and sustaining their operations during these uncertain times.”
Talbot continuedL “Ensuring that employers are not overburdened with additional obligations is vital for the stability and growth of our economy.”
In addition to welcoming the decision on statutory sick pay, he acknowledged that businesses are preparing for the implementation of auto-enrolment:
“Auto-enrolment is a significant step forward in improving retirement savings for employees. While it presents its own set of challenges, we are committed to working with businesses to ensure a smooth transition and compliance with the new requirements.”
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