I received an inquiry from one of my client regarding whether the Statutory Sick Pay (SSP) resets each year on January 1st.
After reviewing the Republic of Ireland's Sick Leave Act 2022, I found no explicit reference to the "year" being defined as a calendar year (January 1 to December 31).
The legislation provides that employees are entitled to a specified number of statutory sick leave days per year, but does not clarify whether this "year" is aligned with the calendar year.
However, the Workplace Relations Commission (WRC) interprets the "year" as the calendar year, indicating that any unused sick leave expires at the end of the calendar year.
This interpretation suggests that statutory sick leave entitlements reset on January 1 each year. While the legislation itself does not specifically state this, the WRC’s guidance implies that employers should consider the sick leave year to align with the calendar year.
It is my understanding that employers may choose to apply a "rolling basis" for SSP entitlement specifically referring to Section 5 (4) "The first day in a year that an employee is incapable of working due to illness or injury shall be the employee’s first statutory sick leave day, and any subsequent statutory sick leave days shall be construed accordingly". Given the absence of clear guidance in the legislation, there should be no negative consequences for employers adopting this approach.
In my view, the lack of explicit definition of the "year" in the Sick Leave Act 2022 creates some ambiguity, which the WRC has attempted to clarify by interpreting it as the calendar year (January 1 to December 31). This interpretation seems reasonable and offers a clear framework for employers to follow, especially since the WRC’s guidance carries weight in the absence of specific legislative detail. Aligning the sick leave year with the calendar year helps maintain consistency and simplifies administration, as it creates a clear cut off for unused sick leave each year.
Ultimately, the decision may depend on practical considerations for each employer. Since there is no explicit provision against using a rolling year, it seems reasonable to adopt this approach without risk of non-compliance, as long as it is consistently applied. However, the WRC’s interpretation of the calendar year offers a clearer and safer approach to compliance, especially for employers who prefer to follow guidance more closely.
I will be happy to provide assistance for any enguiry employement law related, including policies draft, employee handbook's draft and reviews and employee related queries.
Experienced Senior HR and Employment Law Consultant with over 8 year experience in HR field. 15 years people managing record. Diploma in HR Management with CIPD Level 7 qualifications. Advanced Award…
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