Category: Company Law

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New Statutory Sick Pay Scheme

25/1/2023

On 20th July 2022 the Sick Leave Act was signed into law. The new scheme aims to bring Ireland in line with other European countries that have mandatory paid sick leave for workers in place. Under the legislation, employers will be obliged to provide a minimum number of paid sick days annually from 2022.

Currently, an employee whose employer does not provide paid sick leave can apply for Illness Benefit. However, the payment is a flat €203 per week and the worker must satisfy a minimum level of PRSI contributions. Under the new scheme, which will be rolled out in four phases, both full and part-time employees can avail of paid leave. They’ll be entitled to a rate of 70% of usual daily earnings up to €110 a day for three days.

In 2024, this rises to five days of paid leave, before increasing again in 2025 (seven days) and 2026 (10 days). The eventual 10 days, or two working weeks, of sick pay per year will be in addition to other leave entitlements including annual leave, parental and maternity leave as well as public holidays.

The staggered roll-out has been designed to avoid placing an excessive financial burden on employers. It gives them time to plan and budget for the additional costs. As an employer, you must keep proper records for each employee. The records must be maintained for four years and include information in relation to each employee who availed of sick leave.

The following information must be included in the records:

The employee’s period of employment
The dates of statutory sick leave in respect of each employee
The rate of statutory sick leave payment in relation to each employee.

An employer who fails to maintain accurate records may be convicted and subject to a fine of up to €2,500.

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Franchising

29/8/2022

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The franchise sector is an important contributor to the Irish economy both in terms of the employment it creates and the wealth it generates. The growth in the franchise sector in Ireland looks set to increase through new franchisees setting up their own businesses, through existing indigenous businesses using the franchise model for expansion and through new non-Irish franchises entering the market due to our strong domestic economy.

Business Format Franchising is a business method in which the franchisor (developer) grants to the franchisee (investor) the right to run a business selling a product or providing a service under the franchisor’s business format and identified by the franchisor’s trademark or brand. This includes a format for the conduct of the business, a management system for operating the business and a shared trade identity.

Franchising is a comprehensive business relationship whose four essential elements ensure a better success rate than starting a non-franchised business. These are:

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SICK LEAVE BILL 2022 INCREASES SICK LEAVE DAYS FOR ALL WORKERS

22/6/2022

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A first time Statutory Sick Pay entitlement for all employees moved closer to enactment with the announcement recently, by the Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar TD, that the Government has approved the publication of the General Scheme of the Sick Leave Bill 2022.

The Bill legislates for a statutory sick pay scheme for all employees, phased in over a four-year period. The new scheme will start with three days per year once the Bill is enacted, rising to five days in 2024, seven days in 2025, and ten days in 2026. The timeline has shifted slightly since the Government first announced details of the proposed scheme last year when it said there would be 10 days of sick leave by 2025.

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RIGHT TO REQUEST REMOTE WORKING

28/4/2022

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With many employees still working in a hybrid situation, there are a large amount of people requesting a remote working option on an ongoing basis. Currently this is not regulated, however, legislation has been introduced that when passed into law will give workers the right to request a remote working option. Employers will have the right to refuse on grounds to be stated in the bill. If the worker is dissatisfied there will be a right to bring the matter before the WRC.

The following is a non-exhaustive list of some of the reasons an employer can refuses a remote working request on business grounds:

Potential negative impact on the quality of your product or service
A potential negative impact on performance of the employee or other employees
Concerns for the protection of intellectual property, confidentiality of information and data protection
Health and safety issues with a home office or carrying out certain processes at home
Internet connectivity issues
Planned structural changes to the business
If the employee has recently been or, is currently involved in a formal disciplinary process

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CONSUMER RIGHTS BILL 2021

13/4/2022

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Consumer rights in Ireland are set for significant reform. The proposed Consumer Rights Bill was published earlier this year for public consulta!on by the Department of Enterprise, Trade and Employment. The public consultation process completed on June 30, 2021 and submissions will be fully considered before the text of the Bill is finalised.

The Bill only applies to Business to Consumer (not B2B) transactions and is expected to include new statutory rights and remedies in contracts for digital content. It is also expected to contain:

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