Dealing with the unintended consequences of statutory sick pay in Ireland

Unintended consequences, the bane of government policy. Like when they introduce a specific tax to raise revenue, and the introduction of the tax changes behaviour and revenue falls. 

Or if you want a really strange one: some say in colonial India British officials offered a bounty for dead cobras to encourage a cull. But it led to people breeding cobras to cash in, and when the scheme ended, all the extra cobras were released making the problem worse.

What’s all this got to do with HR? The cobras… nothing! But with the introduction of statutory sick pay (SSP) in recent years, you may have seen some unintended consequences of extra sick leave being taken in scenarios where it shouldn’t be. 

And the pressure it puts on SMEs in particular, both financial and through strained resources, could be very challenging unless it is managed well.

Here are a few scenarios that you may see.

Sick pay scenarios

Statutory sick pay was introduced on 1st January 2023 and extended in January 2024. Where employees have at least 13 weeks’ service and a medical certification that they are ill they can take up to five days of paid leave in a calendar year. This was due to be extended to ten days this year, but this has been paused over concerns of the pressure it will put on SMEs. 

You pay sick pay at 70% of normal pay, capped at €110. Of course, many times such sick leave will be genuine, and presenteeism (showing up to work when ill) has its own problems. But there are more scenarios now when employees could take sick leave which they shouldn’t, due to receiving these payments:

• A person with dependants who need unexpected care takes time off as paid sick leave when another type of leave is appropriate.
• Someone who is fit to work with reasonable adjustments but unable to make it to the workplace decides it is easier to just stay off sick.
• Someone working from home decides to report sick for an easy day off whilst still getting paid.
• Workers simply taking time off maliciously and immediately receiving sick pay (if they can get a certificate).

None of the above is guaranteed to happen and a good workplace culture and strong bond of trust between you and your team will be an excellent defence against abuse of the system. But how can good management further help you run a tight ship?

Absence management good practice

Beyond good working relations with your staff, some simple absence management procedures will be a great help.

First, make sure you have excellent attendance and absence records. There is no better way of doing this than with HR software. It keeps records compliantly and allows you to run reports that give you all the information at your fingertips: easily tally total absences, spot patterns, have the evidence if you suspect a member of staff is taking sick days when they shouldn’t.

Better still, the software streamlines other kinds of absence admin like holiday absence. We can offer you a powerful package. Ask us for a demo.

The second and third measures are to ensure you have a good system for reporting absence and checking in with staff when they return. We recommend that where possible they notify you in person by telephone at the start of absence, and that you conduct return to work interviews when they get back. 

Not only do these give you a chance to speak to them face to face (sussing them out if needed), but they also let you assess yourself if they are well enough to return, should they have been nastily ill. Be clear in your policies when medical certificates are required, how they are submitted and your deadlines.

Don’t forget to reinforce these measures with good communication so everyone knows what is expected. Including it in your company handbook is a good idea, and sending it round from time to time (and when they first join).

Absence management help

If you would like help with absence management now we have a statutory sick pay system, or you would like a demo of our HR software, please get in touch.