Hi, just signed a Permanent Full Time Contract with an indigenous SME. I've learned since however, that the company does not pay any sick pay, even for salaried staff. If you miss a day through illness, you're docked a day's pay or have to take it from your holiday entitlement. Is this legal? I thought it may have been mandatory for a company to make some contribution? Appreciate any insight or advice.
Zero Sick Pay - Is this legal?
- Thread starter apple1
- Start date
It is perfectly legal, and usual in much of the economy.
If you are out for more than three days with a sick cert you can apply for welfare payments. Your employer contributes to this through their PRSI contributions.
The traditional position was that those who were paid by the hour (and received over-time payments) were not paid sick pay but those on a salary did get sick pay (as they didn’t get paid for over-time). As a general rule the more exposed the employer is to international competition the less likely it is that this system is in place.
If you are out for more than three days with a sick cert you can apply for welfare payments. Your employer contributes to this through their PRSI contributions.
The traditional position was that those who were paid by the hour (and received over-time payments) were not paid sick pay but those on a salary did get sick pay (as they didn’t get paid for over-time). As a general rule the more exposed the employer is to international competition the less likely it is that this system is in place.
aircobra19
Registered User
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A lot of people don't realise that maternity pay or sick pay are at the employer's discretion.
Maternity top-up pay is at the employers discretion, statutory maternity benefit is not. It is calculated by dividing a woman's gross income in the relevant tax year by the number of weeks they actually worked in that year.
The rate of Maternity Benefit is 80% of this amount, subject to a minimum payment of €182.60 and a maximum payment of €265.60 per week.
Many employers do top this up to the level that the employee earns but this is indeed optional (check your contract).
Brendan Burgess
Founder
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Yes and No.
Employers pay 10.75% of the gross salary in employers' prsi on the vast majority of their employees. There is no ceiling. So an employee on €100k costs the employer a further €10,750. This goes into the fund which pays for maternity benefits, sick pay and pensions.
Brendan
aircobra19
Registered User
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That why I said maternity pay and not benefit. 
My mistake on the amounts, thanks for the more up to date figures. In theory the payments are made through PRSI revenue and as such the employer pays more than the employee as they pay a greater amount of PRSI but in real terms you are correct. The cost to the employer is the disruption of having an employee out for X weeks plus the cost of a short term replacement.
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Alli07
Guest
Sorry to butt in on this, but if anyone could help, I'd appreciate it.
If an employee on 6 months probation has been sick numerous times and paid for it without question and then the employee leaves within the 6 months probation.
Can the employer take the days they were paid for being out sick out of their holiday entitlements?
Thanks
Alli
If an employee on 6 months probation has been sick numerous times and paid for it without question and then the employee leaves within the 6 months probation.
Can the employer take the days they were paid for being out sick out of their holiday entitlements?
Thanks
Alli
The short answer is no. Sick pay is sick pay and not holiday pay.
L
Lao
Guest
Hey Apple, yes it's legal.
Basically it somewhat depends on what is said about it in the companies contract, policy and HR statement.
But, yes they can decide to do that if they want. Wheather on a largescale or individual basis.
Lao.