New laws have recently been passed in the Oireachtas which will change how employers manage staff in relation to two key areas – sick pay and the payment of tips & gratuities.
Sick pay
All workers now have the right to paid sick leave.
Once enacted into law, employees will be entitled to three days’ paid sick leave in the first year of operation, rising to five days in year two, and seven days in year three with employers eventually covering the cost of ten days in year four.
Sick pay will be paid by employers at a rate of 70% of an employee’s wage, subject to a daily maximum of €110. However, it can be revised over time by ministerial order in line with inflation and changing incomes.
To qualify an employee must obtain a medical certificate to avail of statutory sick pay and the entitlement is subject to the employee having worked for their employer for a minimum of 13 weeks.
Once entitlement to sick pay from their employer ends, employees who need to take more time off may qualify for illness benefit from the Department of Social Protection subject to PRSI contributions.
Tips & gratuities
Tips and gratuities received by workers will now be legally protected.
The Payment of Wages Bill will ensure that tips and gratuities are distributed fairly to staff and prevent employers from using tips to make up basic wages. The new law gives employees a legal entitlement to receive tips and gratuities paid in electronic form and requires that this money should be paid to workers in a fair, transparent and equitable manner.
The legislation will also make employers prominently display their policy on mandatory charges and the distribution of cash and card tips.
Consultations will start shortly with employee and employer organisations, leading to new regulations which will give effect to the law.
