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“Reformed sick leave arrangements in public service will result in increased productivity, reductions in absenteeism and a significant reduction in the cost of sick leave in the public service” - Howlin

The Minister for Public Expenditure and Reform, Mr. Brendan Howlin T.D., today welcomed the recommendations of the Labour Court which pave the way for the introduction of a completely reformed new Sick Leave Scheme for the public service.

The Minister stated “I welcome the reformed sick leave terms for the public service which we have been able to introduce under the Croke Park Agreement. The current costs of sick leave at over €500million per annum are not sustainable. The reformed arrangements will result in increased productivity, reductions in absenteeism and a significant reduction in the cost of sick leave in the public service.

For most employees in the public service the new arrangements will mean that the amount of paid sick leave which they may be granted will be halved. It is essential that we strike a balance so that those who are genuinely and seriously very ill should be given reasonable protection by their employer and so for that reason I proposed the introduction of a critical illness provision.

While the reduction of the maximum amount of sick leave granted is critical the effective management of absenteeism is a central element of the HR reforms. The key challenge now for each of the sectors in reducing absenteeism is to engage line managers in the proactive management of sick leave.”

It is intended that cost savings will be achieved through a parallel approach of revising the current paid sick leave arrangements and implementing more robust systems to manage sick leave actively by line managers. The new Sick Leave Scheme for the public service will include the following:

• Implementation of effective policies on the management of sick leave.
• The employer will provide for up to a maximum of 7 self certified paid sick leave days in any rolling 2 year period.
• The employer will provide for paid sick leave of up to 3 months on full pay followed by 3 months on half pay in any rolling 4 year period.
• The employer should reclassify ‘pension rate of pay’ as ‘temporary rehabilitation payment which would be paid for up to a maximum period of 18 months and only on the basis of a reasonable prospect of return to work by an employee.
• The new arrangements will introduce a critical illness provision. The Court recommends that critical illness cover be provided for 6 months on full pay and 6 months on half pay.�
   

Background

As part of the Government’s reform plan for the Public Service and under the Croke Park Agreement management and staff representatives have been in negotiations on fundamental reform of the sick leave schemes currently in place across the public service.

These discussions were initially facilitated by the Labour Relations Commission. However a  number of matters which could not be resolved as part of this process were then referred to the Labour Court under clause 1.24 of the Public Service Agreement 2010 – 2014. The findings of the Labour Court are binding and will now be incorporated into the new scheme.

Previous arrangements vs. new arrangements

Timeline

The Court recommends that the recommendation on self certified sick leave should come into effect as soon as practicable. The D/PER will immediately commence work to give effect to this recommendations from September of this year.

Subject to the necessary legislation being enacted, the proposal on certified sick leave and the other matters covered by this recommendation should take effect from 1st January 2014.