Sick Leave in Ireland – What Does the Law Say?

Know Your Rights

Sick leave is a time off your day to day responsibilities, to stay home and focus in your health without losing your payment. This is a benefit that some companies decide to offer to their employees. If you want to know about the different illness benefits you can receive, the amount of sick leave in Ireland that you are allowed annually, along with what you receive in terms of payment, this article is for you.

Sick Leave and Sick Pay in Ireland (Rules)

The single most important thing to remember is this:

Under Irish employment law, an employer has no obligation to pay staff who are on sick leave.

Yes, you read that correctly! The amount of sick leave allowed annually, along with what you receive in terms of payment, is entirely at the discretion of the employer. If this concerns you, make sure you read your contract of employment immediately!

According to Section 3 of the 1994 Terms of Employment (Information) Act, an employer is obligated to provide all employees with a written terms of employment contract within two months of the employee beginning their job. The company must also include details relating to its sick/injury leave policy.

It is normal for a contract of employment to add a maximum sick leave entitlement during a specified period. For example, you may be entitled to 20 days of sick leave per calendar year. If your employer offers sick leave and payment, it is likely to want a medical certificate from a GP to prove that you are ill.

Your employer is also allowed to ask for weekly medical certificates if you are out sick for a long period. In certain circumstances, a company is allowed to terminate the contract of an employee who has been sick for a prolonged period. This is an uncommon outcome however because of the threat of legal action in an unfair dismissals case.

If you don’t receive sick pay as part of your terms of employment, you can launch a complaint against your employer under the Payment of Wages Act.

Sick Pay in the Irish Public Sector and Private Sector

The rules regarding sick pay in Ireland vary according to the sector you work in. Also, organisations can create their own policies on sick leave and elect to pay staff. Make sure you check your contract of employment. If you cannot work because of illness or injury and have paid enough PRSI contributions, you may qualify for Illness Benefit.

Unlike many countries in Europe, private sector Irish employees have no right under employment law to be paid when taking sick leave. Sick pay is still viewed as a perk that companies can decide to include in a contract if they wish. Let’s check out the difference between sick pay in the public and private sectors.

Sick Pay in the Irish Public Sector in 2020

The Public Service Sick Leave Scheme was introduced in the Education sector in September 2014 and applied to all public servants. It provides for:

• Up to 92 days of sick leave per annum on full pay.
• Followed by up to 91 days of sick leave each year on half-pay.
• The overall maximum is 183 days of paid sick leave across a rolling four-year period.
• The scheme also has Temporary Rehabilitation Remuneration (TRR) if you have exceeded the maximum allowance and get sick again. TRR can apply for up to 548 days.

In the HSE, the Public Service Sick Leave Scheme, introduced in March 2014, included similar provisions.

Sick Pay in the Irish Private Sector in 2020

In contrast, private-sector workers have no right to receive payment while on sick leave. One 2019 survey found that only 44% of employers even had a sick pay top-up scheme. Employees that don’t receive sick pay from their company can claim Illness Benefit. However, this only happens if you have made at least 104 PRSI contributions.

It is paid at a rate of €203 a week before tax and only applies from the seventh day of illness. You only receive Illness Benefit for a maximum of a year if you paid less than 260 weeks of PRSI contributions. Otherwise, it is payable for up to two years.

Also, an application must have a ‘certificate of incapacity to work,’ which can cost up to €60. Unfortunately, workers aged 66+ and those who are self-employed are not entitled to Illness Benefit.

The Irish Congress of Trade Union (ICTU) is currently demanding legislation to ensure that sick pay becomes a statutory right for all workers. It is necessary to bring Ireland in line with most European nations. For example, employers in Germany must pay a sick employee’s entire wage for up to six weeks. In the Netherlands, companies have to pay 70% of the wage for a maximum of two years. Meanwhile, in Ireland, public sector workers are protected, whereas their counterparts in the private sector are not. Even the Illness Benefit is woefully inadequate and depends on how much you earn. For instance, you only receive the maximum amount if you earn at least €300 a week.

How Much Illness Benefit Can I Receive?

If you are unable to work due to illness, you may be entitled to Illness Benefit from the Department of Employment Affairs and Social Protection (DEASP). To qualify, you have to be aged 65 or under, meet the PRSI conditions, and be covered by the right class of PRSI.

Illness Benefit is not linked to your company’s policy on sick leave pay. Regardless of whether you also receive sick pay, you need to begin claiming from the first day of your illness. If your income is too low to meet your needs as you wait for a decision on your claim, you could be entitled to Supplementary Welfare Allowance.

The amount you can receive depends on your income, and whether your claim began in 2008 or before. Assuming your claim is from 2009 onward, here is a quick table to show what you can claim:

From 25 March 2019, the maximum weekly rate will increase by €5, and there will be proportional increases for qualifying adults and those who are on reduced payment rates. There will also be increases for qualifying children.

What Days of the Week is Illness Benefit Paid?

No payment is made for the first six days of an illness, and there are no Sunday payments at any time.

Work and Illness Benefits

You are not permitted to work while receiving Illness Benefit although voluntary work is allowed in some cases. If you have an existing claim and have been in receipt of Illness Benefit for a minimum of six months, you are eligible to apply for Partial Capacity Benefit (PCB).

According to this scheme, you can go back to work (assuming you have a ‘reduced capacity’) and still receive a social welfare payment. The rate depends on an assessment made by a special doctor hired by the DEASP. Associated payments include:

• Carer’s Allowance
• Blind Pension
• Domiciliary Care Allowance/Carer’s Support Grant
• Disablement Benefit
• Working Family Payment.
• Back to Work Family Dividend

How Can I Apply for an Illness Benefit?

Make your Illness Benefit claim by completing forms IB1 and MED1; although the latter is completed by your local physician. You can get both forms from your family doctor (GP).  For every week you remain ill, you must schedule an appointment with your GP and complete a different MED1 form. Before you return to work, the final MED1 form must be labelled as a ‘Final Certificate’ by your doctor.

Apply for your Illness Benefit within six weeks of becoming ill. Failure to apply within this timeframe will equate to a loss of payment. You need to provide a good reason for any delay to have a chance of receiving backdated payments. Send your application to the DEASP in Dublin 1.

You are only eligible if you have paid a minimum of 104 weeks of PRSI contributions since you began work or else you have paid or credited 39 weeks of PRSI in the relevant tax year. 13 of these weeks must be paid contributions. If you don’t meet the criteria in the relevant tax year, you are allowed use 13 paid contributions in the current tax year, the last completed tax year, or either of the last two tax years before the relevant tax year.

How Long Can I Stay on Illness Benefits?

Illness Benefit is paid for up to 624 payment days (two years) if you have a minimum of 260 weeks of ‘reckonable’ social insurance contributions. Contributions of this nature paid in any EU country, the Isle of Man or the Channel Islands count.

Alternatively, the maximum payment term is a year which equates to 312 payment days, if your reckonable social insurance contributions are between 104 and 259 weeks. The DEASP will contact you when your payment is due to stop and provide you with information on other options.

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