Am I getting two extra sick days? Government makes unexpected U-turn on sick leave

In what has been slammed as a "mistake and short-sighted" decision by The Irish Congress of Trade Unions (ICTU), the Government announced on Wednesday that paid statutory sick leave will remain unchanged at five days per year, despite the commitment to extend it under the previous Government's policy.

An extra two days were to be added this year to bring the total number of paid sick days up to seven days for 2025. This proposal was part of a gradual increase which would eventually see the leave entitlement expand to a total of 10 days as introduced in legislation in 2022 by the previous Government. 

However, it is not too surprising that the plans to add two extra days have been halted considering the disagreement within the previous Government as to how much was too much. Despite the pledge to increase sick leave entitlements, Fine Gael had argued that five days per year was the right balance to maintain affordability for businesses.

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Even within the party there was disagreement, with former Taoiseach Leo Varadkar promising to reach 10 paid sick days by 2026 and then Simon Harris later deviating from such a statement citing the pressure it could put on small businesses. 

Indeed, in his announcement on Wednesday, Fine Gael Minister for Enterprise, Tourism and Employment Peter Burke echoed these concerns for businesses.

The Minister said on Wednesday: "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."

He added: "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."

As it stands, paid sick leave in Ireland ensures that employees are entitled to a minimum level of financial compensation if they cannot work due to sickness or injury. People are entitled up to five days of sick leave each year, paid at 70% of their gross earnings - which is up to a daily cap of €110. 

The purpose of the legislation is deemed as providing "financial protection to employees, often in low-paid, precarious roles, who are genuinely unfit to work due to illness or injury but who do not have access to a company sick leave scheme."

However, research conducted by the Irish Government Economic and Evaluation Service and the Department of Enterprise, Trade and Employment found that increasing sick leave would have the greatest impact on businesses involved in retail. accommodation and food services and hence the reason why it is being capped at five days. 

Yet when the workers this legislation is set out to protect predominantly work in these areas, surely the Government can identify the conundrum on their hands?