Commitments were made by both the Tánaiste and the Minister of State for employment affairs and retail, Damien English TD that employers who can provide evidence that an extra employee was paid during the period of sick leave may be able to claim an allowance or rebate for such payment following an extensive review of the first period of operation of the Sick Leave Act in 2023.
The Bill passed all stages of its passage this week and awaits the signature of the President to become law. Ministerial regulations giving effect to certain aspects of the Act are expected presently
Both Mr Varadkar and Mr English accepted the views of CSNA that small and medium-sized businesses that need to provide service to their customers are disproportionately affected by this legislation. Senator Pat Casey summed up the feelings of many when he called on future legislation to be proofread for its effect on community-based businesses.
CSNA based its argument for a rebate on a number of principles –
- Any rebate should be viewed as a reallocation of employers PRSI, and not in itself a cost to the Exchequer.
- 74% of the €8 billion annually accrued comes from employer’s contributions.
- It is not unreasonable to seek this reallocation of funds that have, since 1979 been collected specifically for a particular purpose, the funding of employee redundancy costs (no longer rebated for over a decade).
We look forward to engaging with the minister and his department officials throughout the review process.