On the 8th of April, the Government announced a pause on the planned increase in statutory sick leave entitlements, which would have seen the allowance rise from five to seven days. This decision followed extensive consultations by the Department of Enterprise, Tourism and Employment with various industry stakeholders, including Dublin Chamber.  

Dublin Chamber had previously raised concerns over the proposed expansion of sick leave entitlements. While we fully support the statutory sick leave scheme, recognising its role in promoting employee well-being and fostering a healthier, more resilient workforce, we have consistently highlighted the growing administrative and financial pressures placed on businesses, particularly SMEs.  

Over the last number of years, employers have faced an expanding legislative landscape, from minimum wage increases to the development of the Work/Life Balance Act, the introduction of gender pay gap reporting and the statutory sick leave scheme, and with Auto-Enrolment soon to be introduced. These reforms, while well-intentioned, have collectively led to a significant increase in compliance costs and administrative demands, straining the capacity of SMEs in particular, who are already navigating a challenging economic environment.  

We therefore welcome the Government’s decision to pause further increases in statutory sick leave entitlements. It demonstrates a recognition of the pressures currently facing businesses and acknowledges the need for breathing room following recent legislative changes, particularly the increase in statutory sick leave from three to five days implemented just last year.   

Striking the right balance between supporting employee well-being and ensuring business viability is essential. Reducing excessive burdens on employers will be critical to maintaining competitiveness. 

For more on the recent pause to increase in the Statutory Sick Leave Scheme, see here.