As the evenings draw in and the colder months approach, many Dublin businesses brace themselves for an annual challenge – staff sickness and absence. From seasonal flu to winter bugs, illness can quickly spread through the workplace, leaving employers short-staffed and under pressure. For small and medium-sized enterprises (SMEs), where every employee plays a crucial role, the impact of staff absence is particularly significant.
This article looks at the legal position under Irish employment law, the financial impact of sick leave, and practical steps SMEs can take to protect their business and support their people.
The Cost of Sick Leave for Irish Businesses
Absenteeism is a costly problem. According to IBEC, workplace absence costs Irish businesses an estimated €1.5 billion annually, with an average of 4.6 days lost per employee each year. For SMEs in Dublin, where teams are often leaner, even one staff member being absent for a week can cause disruption to client service, deadlines and revenue.
In sectors such as retail, hospitality and professional services, unplanned absences are especially disruptive – often requiring overtime pay, temporary cover, or colleagues to take on extra workload, risking burnout.
Statutory Sick Leave in Ireland – Where Are We Now?
Ireland’s statutory sick leave law came into effect in 2023 under the Sick Leave Act 2022. The legislation set out a phased increase in the number of days employees are entitled to, with the goal of reaching 10 days by 2026.
- 2023: 3 days
- 2024: 5 days
- 2025: originally due to increase to 7 days, but the Government has postponed this
- Current position (Autumn 2025): Employees remain entitled to 5 days per year
Payment is set at 70% of an employee’s normal daily wage, capped at €110 per day. To qualify, an employee must have 13 weeks’ continuous service with their employer and provide a medical certificate.
This pause in the increase gives SMEs some breathing space, but employers must still be careful to comply with the current rules. Failing to pay statutory sick leave correctly can lead to claims before the Workplace Relations Commission (WRC).
Why Review Your Sickness Policies Now?
Autumn is the perfect time to review your workplace policies and employee handbook. A clear, legally compliant policy helps set expectations for staff, reduces disputes, and ensures your business is protected.
Key elements your sick leave policy should cover include:
- Notification procedures – who employees must contact and by what time if they are unwell.
- Medical certificates – when these are required.
- Statutory entitlements – ensuring your policy reflects the Sick Leave Act 2022.
- Company benefits – whether you offer enhanced sick pay in addition to the statutory minimum.
- Return to work procedures – including check-ins to support staff and reduce repeat absences.
The Role of Workplace Culture
Interestingly, research suggests that workplace culture has a direct impact on absence rates. Employees who feel valued, supported and respected are less likely to take unnecessary sick days. On the other hand, in workplaces with poor communication, high stress or low morale, absence levels are often higher.
Creating a positive culture can therefore be a preventative measure. Practical steps include:
- Encouraging open communication between managers and staff.
- Supporting mental health through initiatives such as Employee Assistance Programmes.
- Promoting flexibility (for example, hybrid or remote working during flu season).
- Recognising employee contributions to build engagement and loyalty.
- Making the workplace an enjoyable and comfortable environment to work in.
Could Employee Benefits Help?
For SMEs keen to go beyond the statutory minimum, offering additional benefits can reduce the impact of sickness absence and improve staff retention. Options include:
- Private healthcare or GP schemes – quicker access to treatment, reducing time off work.
- Health and wellbeing programmes – covering flu vaccines, fitness classes or counselling.
- Occupational health partnerships – to help manage long-term illness cases.
While these benefits involve upfront costs, they can reduce long-term losses caused by absenteeism and improve overall productivity.
Practical Tips for SMEs This Winter
To minimise disruption and ensure compliance, businesses should consider the following:
- Update your employee handbook to reflect the current statutory sick leave entitlement (5 days) and clear procedures to follow for reporting illness.
- Train managers and HR staff to handle absence consistently and in line with the law.
- Monitor absence trends – spotting patterns early can help tackle underlying issues.
- Encourage flu vaccinations and promote good hygiene in the workplace.
- Review contracts of employment to ensure they align with your policies.
- Consider the working environment / flexible working procedures to stop the spread of sickness in the workplace.
Staying Compliant and Protecting Your Business
With statutory entitlements in place and winter illness inevitable, SMEs need to balance legal obligations with protecting business operations. Having clear policies, a supportive culture, and proactive HR practices can help keep disruption to a minimum.
At Dillon Solicitors, we regularly advise SMEs across Dublin on employment law, HR compliance and risk management. Our team can review your employment contracts, handbooks and procedures to ensure you are fully compliant ahead of the winter season.
Sick leave doesn’t just affect the bottom line – it impacts team morale, client relationships and long-term growth. By preparing now, SMEs can protect themselves from unnecessary disruption and demonstrate care for their staff.
If you would like us to review your employment contracts, staff handbook or workplace policies before winter sets in, our Employment Law team would be happy to help. Contact Dillon Solicitors today for clear, practical advice tailored to your business.
